1. Summer Internship Project Report
Impact of covid-19 on real estate industry
Prepared by,
Name of student :- Tholiya Nikhil p.
Enrollment Number:-197780592144
SOM-LALIT INSTITUTE OF BUSINESS
MANAGEMENT
AHMEDABAD
778

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of, who has carried out his / her project under my supervision. I also certify further that , to the best
of my knowledge, the work reported herein does not form part of any other project report or
dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or
any other candidate. I have also checked the plagiarism extent of this report which is ……… % and it
is below the prescribed limit of 30%. The separate plagiarism report in the form of html /pdf file is
enclosed with this.
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3. Plagiarism Report
• Document Information
Analyzed document : sipnikhilresubmissonDIV-B-65.docx (D76213498)
Submitted : 7/10/2020 7:29:00 AM
Submitted by : SLIBM
Submitter email : mba778owner@gtu.edu.in
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4. INTRODUCTION
• History of COVID-19
• Role of market overviews
• Impact on Employment
• impact on Indian economy
• impact on Indian real estate
• Overall Impact of COVID-19 on whole world
• Indian Commercial Office Sector: COVID-19 to break growth
momentum
• FDI in Construction

5. Objective
• The impact of real estate sector covid-19 .What is the damage and what is the
effect.
• COVID-19: Will it reset the Indian Real Estate sector?
• The decline was influenced by several events, including the COVID-19
outbreak and several high-profile issues in the domestic banking and finance
sectors in late 2019 and early 2020.
• A few notable trends likely to emerge amidst the current COVID-19 situation
• Market Size & GDPContribution

6. Literature Review
Author Title Source Findings
Virendra
Joshi
Indian Real Estate:
Pre-COVID-19
Outbreak Overview
Property
Consultants
find this Market Size & GDP
Contribution
Ashim
Bhanja
Chowdhury
Indian Commercial
Office Sector:
COVID-19 to break
growth momentum
INDIAN
OFFICE SPACE
A few notable trends likely
to emerge amidst the
current COVID-19 situation
ROHAN
SHARMA
KEY MARKET
OVERVIEWS
REI We do not anticipate a major impact
from the COVID-19 outbreak on
India’s real estate markets.

7. Research Methodology
• In this study I have taken survey reports & study reports by various agencies like CRISIL, FICCI, PwC,
ASSOCHAM, CII, McKinsey & Company and CARE Ratings for detail study. I have chosen the reports
mostly published in March and April months to understand the impact of COVID-19 on Indian economy
and various sectors. Also, I have studied few research papers and News articles which publish in these
two months.
Results and Findings:
• It is revealed that when the global economy is on a slowdown mode no emerging economy can grow at its
normal pace. The Indian economy was grappling with its own issues and COVID-19 made the matters worse.
India’s GDP has been on a consistent decline after peaking out at 7.9 in Q4 of FY 2018 to 4.5 in Q2 of FY 2020.
The industry was facing demand problems, due to which business houses were reluctant to undertake capex
plans, unemployment was at its peak and exports which were consistently down for several months. India has
the problem could be more acute and longer lasting, the economy was in parlous state due to Covid-19 struck.
• Like India, several international economies are becoming cognizant of the risk they face by being overly
dependent on one market. Making the current situation a learning opportunity, this is the time India can work on
capturing potentially 40% of their competitor’s market share by looking at indigenous production of goods,
furthering the country’s Make in India campaign.
RESEARCH DESIGN:
• Instruments to use collect data: - Questionnaire
• DATA COLLECTION METHOD: Google Form

8. Indian Real Estate: Pre-COVID-19 Outbreak Overview.
• Currently we do not anticipate an immediate major impact from the COVID-19 outbreak on India’s real
estate markets. We would view the situation in the context of it potentially being a precursor to a global
slowdown which, if precipitated, may exert downward pressure on Indian real estate markets not unlike other
major global markets.
• India’s commercial markets remain on a strong path even as the events around the COVID-19 coronavirus
outbreak in China are unfolding. The country’s office markets are largely driven by the services sector, which in
turn is linked closely to the U.S. economy. With the U.S. economy remaining growth-oriented and India’s
services sector showing positive growth, property markets in India have remained strong over the past two years.
Market Size & GDPContribution
• Indian real estate was just beginning to come to terms with the multiple reforms and changes brought in by
demonetization, RERA, GST, IBC, and subvention scheme ban. While the sector found it difficult to align with the
slew of reforms and changes, these measures helped fortify the sector and instil transparency, accountability and
fiscal discipline over the last few years.
• While the sector was on a growth trajectory since the last few years and was likely to emerge stronger than before,
the current coronavirus lockdown has surely put brakes on its growth momentum.Industry estimates of the Indian
real estate market, prior to COVID-19 outbreak, was projected to be USD 650 Bn by 2025 and USD 1,000 Bn by
2030. This certainly seems tough amidst the current circumstances.
• The pandemic arrived during a period of faltering global growth, elevated geopolitical risk and an intensifying
pushback against globalization. The crisis may exacerbate all those trends. Unlike during the GFC, there is no
large- scale international coordination in response as some countries turn inward toward nationalism.

9. MARKET SIZE
USD 1,000Bn
USD 650 Bn
2008 2017 2020
USD 50Bn USD 120Bn
USD 180Bn
REAL ESTATE CONTRIBUTION TO GDP
2017
6%
13%
2025
2025 2030

10. Employment
• After agriculture, real estate is the largest employment generator in the country. The sector creates tremendous
opportunities for the skilled and unskilled workforce. It has also been instrumental in employing large masses of
migratory populations that come to the metropolitan cities in search of work.
• As per industry estimates, 90% of the workforce employed in real estate and construction sector is engaged in the
construction of buildings, while the rest 10% is involved in building completion, finishing, electrical, plumbing,other
installation services, demolition and site preparation. Over 80% of the employmentin real estate and construction
constitutes of minimally skilled workforce, while skilledworkforce accounts for over 9% share, and the remaining are
spread across work classes such as clerical, technicians and engineers.
• As per the Economic Survey 2017-181, employment is expected to grow at a compounded rate of 5%. These figures are
mainly for construction and development.
• Commercial real estate has been a reliable mainstay of the Indian real estate sector, remaining vibrant even while residential
property remained in the doldrums.
• No easy answers exist as COVID-19 is a constantly-evolving crisis. Even if the lockdown is removed, migrant workers
could remain reluctant to return because of the uncertainties involved, especially if the coronavirus threat still looms large
over the country.

11. Indian Commercial Office Sector: COVID-19 to break growth momentum
• Indian commercial office sector has been on a growth trajectory with corporate expansions led space absorption attaining a
peak in 2019. Major occupiers committed to large spaces to accommodate their ambitious growth plans.
• Despite global slowdown early this year due to trade war, Indian office market remained insulated as occupiers looked to
expand their operations. Ability of Indian cities of offering sub-dollar rental values for ITeS companies and sub-one and
half dollar rental values for IT companies drove consistent growth in leasing. Net absorption in top 7 cities was recorded at
40 Mn sf in 2019, growing by 19% over 2018.
• New completions also kept pace with rising demand and stood at 46.5 Mn sf in 2019, recording 21% yearly growth.
Overall vacancy remained almost stable at 14.4% by 2019-end.
• As is, India’s GDP growth rate slipped to 4.7%, nearly 7-year low, in Oct-Dec 2019 quarter and amidst the current turmoil,
its improvement surely seems bleak.
• Predictions for 2020 are based on previous period of sluggish demand experienced in India during 2012-14 and the global
economic crisis of 2008. Both these periods seem relevant as the Indian office segment has a direct and proportionate
correlation with economic activities. It is also heavily dependent on global companies that expanded their operations in
India and have been driving demand for Indian office real estate.
New Completion
(2019)
46.5 Mn sf
Net Absorption
(2019)
40 Mn sf
Vacancy
(2019)
14.4%
01 02 03
INDIAN COMMERCIAL OFFICE SPACE SNAPSHOT

12. Rentals to come under pressure
• As most corporate occupiers in Indian office space are
MNCs in the IT-ITeS sector, which are headquartered in
Europe or the U.S., they are likely to revisit their business
plans for the coming years. The analysis further indicates
that US-based companies account for 45% occupiers,
followed by India-based companies at 30%. Incidentally,
countries within the European Union - one of the worst
affected - contribute 10% of the overall leasing in the
Indian office market. However, the current testing time will
compel many Indian operators to explore various options
that can be leveraged in the future to optimize cost.
• Given the present situation, if the U.S. is able to arrest the
spread of the pandemic and capable of preventing the
economic contraction, the demand for corporate spaces
may remain intact. The economy of the countries in the
Euro Zone are severely impacted and are likely to contract
post the COVID-19.
• Large occupiers who have not been able to operate to their
full strength during the pandemic may factor this period
while renewing and would negotiate the rentals..
Office Spas Ocupyrus : Geographical Spread
India
30%
Europe
10%
Asia
7%
Rest of the world
8%
USA
45%

13. Demand for flexible spaces on the rise; relook at office space requirement.
• Layout of workstations and production areas may be revisited to optimise
real estate requirements basis a new work schedule and regime. Occupiers
may consider flexible working schedules based on rostered days of works;
thereby reducing the space requirement resulting in reduced operations cost.
• According to Global Workplace Analytics, employers can save over USD
11,000 per half- time telecommuter per year. Having experienced
telecommuting during the COVID-19 pandemic, many companies may
consider this as a long- term strategy, which will result in optimizing their
real estate requirement and operations cost.
• COVID-19 pandemic has disrupted office segment which was on a growth
trajectory for the last three years. The incident will open new business
models which makes the players more reliant on technology for ensuring
business continuity. However, the massive construction activities that are
currently underway in India and other emerging economies face uncertainty.
The corporate world may be forced to revisit their requirements keeping
personal health and hygiene as the topmost priority for their assets and
employees.

14. COVID-19 to challenge Indian Retail Sector
• all cities under lockdown mode, at least until mid-April 2020 (as per current advisory). While India is in
the early stages of COVID-19, shutting down of retail malls and high-streets has raised serious questions
on the growth of this key asset class within the Indian real estate sector.
INDIAN RETAIL SECTOR SNAPSHOT
Net New Completion
(2010-19)
49.2 Mn sf
Net Absorption
(2010-19)
49 Mn sf
Vacancy
(2019)
14%
01 02
03
New
open

15. A few notable trends likely to emerge amidst the current COVID-19
situations
1.Dip in consumer spending
Buoyed by a strong economy, rising household income, socio-economic factors and change in spending pattern,
consumption expenditure has been on a rise in India. As per World Bank statistics, final consumption expenditure in
India increased from USD 1.10 Tn in 2010 to USD 1.92 Tn in 2018, a CAGR of 7%.
2. New mall completion delays
As per pre-COVID-19 estimates, around 8.4 Mn sf mall space was planned to complete across the top 7 cities in
2020.
3. Leasing activity slowdown
FINAL CONSUMPTION EXPENDITURE
2011 2012 2013 2013 2015 2016 2017 2018
USD
1.23Tn
USD
1.1Tn
USD
1.23Tn
USD
1.27Tn
USD
1.4 Tn
USD
1.46 Tn
USD
1.6 Tn
USD
1.86 Tn
USD
1.92 Tn
2010

16. 4.Rise in vacancies
With slowdown in leasing activity, we may witness momentary increase in vacancies across malls. Amidst the current COVID-19
outbreak, retailers will either delay or defer getting into new deals considering that business will remain muted for the next few months
following decline in footfalls.
5. Business models relooked
All-in-all, mall owners’ rental collections are likely to be impacted severely, followed by a spill-over impact on their business. Decline
in month-on-month rental collections not only affect mall operations but also disrupt developers bank payments and future rental
generation capability. In our opinion, we may witness a significant pressure on rentals to the tune of 10%-15% in 2020 in terms of effective
collection from retailers to the mall owners.
VACANCY TRENDS
2010 2011 2012 2013 2014 2015 2016 2017 2018
14%
14.8%20.2%
2019 2020 F

17. COVID-19 Outbreak: Relief measures offered by various countries
All countries affected by the impact of COVID-19 outbreak have announced fiscal stimulus packages to maintain
liquidity and economic continuity at these times of distress. While many nations have directly infused liquidity into the
system some have also ensured public distribution of food and sustenance measures.
1. UK
• £350+ Bn lifeline for economy.
• Includes £350 Bn in loans, £20 Bn in other aid.
• A business rates holiday, and grants for retailers & pubs.
• Help for airlines is also being considered.
2. Canada
• Canada’s financial regulatorybody lowered bank reserverequirements, allowing banks tolend an additional USD 214 Bn. On
the fiscal side, the Canadian
• government announced USD7.1 Bn in loans to businesses tohelp them cope with the damage the coronavirus is doing to the
economy
3. USA
• USD 1 Tn stimulus package, nicknamed “Phase Three”.
• USD 500 Bn in direct payments, including a more than USD 1,000 payment to all U.S. adults, excluding millionaires and
billionaires.
• USD 50 Bn in bailouts for the airline industry.
• Upwards of USD 500 Bn for small businesses and other expenditures.

18. 4. France
• French Finance Minister, Burno Le Maire announced a USD 49 Bn aid package that includes
- Substantial social-security tax cuts
- Unemployment benefits for people forced to work part time
- A fund to help shopkeepers and the self employed
• In addition, Minister Le Maire said that they would guarantee bank loans of up to USD 327 Bn to help businesses.
IMF stands ready to mobilize its USD 1 Tn lending capacity to help member countries
5. Eurozone
• ECB has launched emergency €750 Bn (USD 820 Bn; £700 Bn) package to ease the impact of COVID-19. ECB will buy
government and company debt across the eurozone, including that of troubled Greece and Italy. ECB boss Christine
Lagarde: “There are no limits”to our commitment to the euro zone.
6. UAE
• Initiatives to boost SMEs; has pledged AED 100 Bn (USD 27.2 Bn).
• Includes AED 5 Bn of water & electricity subsidies for citizens & industries.
• Curbed toll taxes till the end of 2020.
• AED 3 Bn has been allocated to SME credit guarantee scheme.
• The stimulus package also includes AED 1Bn to establish market funds to enhance liquidity.
• Announced 20%refund on rent paid by tourism & entertainment sectors.
7. Saudi Arabia
• Unveiled SAR 50 Bn (USD 13.3 Bn) to help private businesses survive the COVID-19 pandemic.
• SMEs will also be supported through SAR 6 Bn loan guarantee scheme announced by the government.

19. Gender
Female
Male
70.4%
29.6%
Responses & DATAANALYSIS
What do you think covid-19 real estate has affected?
Yes
No
14.8%
85.2%

20. Do you owna property?
27 responses
Housing preference
Yes
No
Maybe
14.8%
37%
48.1%
Stan Twin /Town Villad Alone
Villa
Twin /Town Villa
Ground Floor Apt with Garden
Penthouse Apartment with Ro…
Apartment
Duplex Apartment
Studio Apartment
Chalet
Stand Alone Villa
22.2%
18.5%
11.1%
11.1% 29.6%
14.8%
48.1%
37%

21. Property Preference
Which source of information do you use while choosing real estate
property?
0 5 10 15
1 BHK
2 BHK
3 BHK
4 BHK
3 (11.1%)
14 (51.9%)
14
(51.9%)
4 (14.8%)
Brokers
Family/Friends
Real Estate advertisement
Internet
29.6%
33.3%
29.6%
7.4%

22. Have you seen any homes/investment properties that you are interested
in?
Yes
No
29.6%
If you get the right property will you be able to make a decision
immediately?
70.4%
Yes
No37%
63%

23. Where would you like the property to be based?
How do you plan to buy the real estate property?
City or Urban community
Suburban community
Rural community
33.3%
14.8%
51.9%
Self funded
Loan from Family/Friends
Loan from Banks/Financial
Institutions
29.6%
33.3%
37%

24. How satisfied were you with the available shipping option?
Very satisfied
Somewhat satisfied
Satisfied
Somewhat dissatisfied
Very dissatisfied7.4%
18.5%
37%
37%
How satisfied were you with the return process?
Very satisfied
Somewhat satisfied
Satisfied
Somewhat dissatisfied
Very dissatisfied
25.9%
29.6%
40.7%

25. Please rank what you look for in order of importance when selecting
products on [SiteName]?
Quality Cost Quantity Brand name Familiarity
0
10
20
Not Important Maybe Very Important
How competitive do you find the prices on [Site Name]?
Very competitive
Sometimescompetitive
Not competitive
Don’t know18.5%
11.1%
25.9%
44.4%

26. Key Learnings from thecrisis
To beat any crisis, all industries innovate and rectify their inherent flaws. And, Indian real estate is no different.
It has been adapting to rapidly changing environment. It now realises that extraordinary situations such as Covid-19
warrant inimitable measures..
1. Business continuity planning
Business continuity and disaster recovery planning prevents against disruptions and subsequent recovery
from situations that potentially threat productivity and jeopardise the services of any company. This is critical
during times of exigencies when it becomes challenging to maintain continuity of services.
2. Space optimisation for cost rationalisation
Prevailing crisis of COVID-19 will result in innovative solutions or rostered work shifts and timings.
Many companies, depending on their nature of businesses will reduce their dependency on utilisation of office
premises and resources. This may result in operating from smaller spaces which will save rent and maintenance
cost. This can be an eye opener for many to revisit their plans and create case studies for space optimisations. It
will be an important measure to rationalise cost, particularly in times of turbulence.
3. Risk management practices
Practices and policies pertaining to risk management need to be taken seriously by all businesses and
not be restricted to the financial sector. It needs to be practiced with all earnestness to improve the
preparedness for any future disasters and ability to mitigate situations. Incessant monitoring andpreparedness
can help to focus the actions and steps to be taken at the time of a crisis and help protect and preserve
business assets.

27. Conclusion
• According to survey most of the people long run investor for.
• Investors should not invest in this pandemic situation. But good opportunity for investor
• Most of the people who respondent is not a short time. Investors invest to make money
• However, we do not expect major price adjustments given recent reweighting of international
real estate investment capital to Asia Pacific markets, and the number of opportunistic players
that are active currently.
• The Government of India and the Reserve Bank of India have also announced several
measures to combat the social and economic crisis arising out of the COVID-19 breakout.
• The impact of the COVID-19 outbreak is clearly visible on the market and GDP.
• The crisis caused by COVID-19 raises the question for many real estate owners whether a
property sale can be carried out safely at the present time. In fact, has the most modern,
digital tools at its disposal to handle house sales even when personal inspection of a property
is no longer possible.

28. REFERENCES
• https://www.livemint.com/money/personal-finance/how-covid-19-will-impact-realty-sector-11586103020336.html
• https://www.jll.co.in/en/trends-and-insights/research/covid-19-global-real-estate-implications
• https://housing.com/news/impact-of-coronavirus-on-indian-real-estate/
• https://3wnews.org/uncategorised/928467/logistics-real-estate-market-2020-with-covid-19-impact-analysis-industry-growth-
future-trends-key-players-and-regional-outlook-2025/
• http://www.traverstidbits.com/2020/04/14/covid-19/
• https://retail.economictimes.indiatimes.com/re-tales/will-india-s-retail-industry-survive-the-covid-19-lockdown/4141
• https://economictimes.indiatimes.com/markets/stocks/news/covid-19-impact-india-real-estate-institutional-investment-
down-58-in-january-
march/articleshow/75253574.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
• https://www.commonfloor.com/guide/impact-of-coronavirus-covid-19-on-indian-real-estate-56396

29. Questionnaire
Impact of covid-19 on real estate
Name:-…………………………..
Gender
 Female
 Male
What do you think covid-19 real estate has affected?
 Yes
 No
Do you own a property?
 Yes
 No
 Maybe
Housing preference?
 Stan Twin /Town Villad Alone Villa
 Twin /Town Villa
 Ground Floor Apt with Garden
 Penthouse Apartment with Roof Are
 Apartment
 Duplex Apartment
 Studio Apartment
 Chalet

30. Property Preference?
 1 BHK
 2 BHK
 3 BHK
 4 BHK
Which source of information do you use while choosing real estate property?
 Brokers
 Family/Friends
 Real Estate advertisement
 Internet
 Other:
Have you seen any homes/investment properties that you are interested in?
 Yes
 No
If you get the right property will you be able to make a decision immediately?
 Yes
 No
Where would you like the property to be based?
 City or Urban community
 Suburban community
 Rural community
 Other:

31. How do you plan to buy the real estate property?
 Self funded
 Loan from Family/Friends
 Loan from Banks/Financial Institutions
 Other:
How satisfied were you with the available shipping option?
 Very satisfied
 Somewhat satisfied
 Satisfied
 Somewhat dissatisfied
 Very dissatisfied
Please rank what you look for in order of importance when selecting products on [Site Name]?
Not Important Maybe Very Important
Quality
Cost
Quantity
Brand name
Familiarity
How competitive do you find the prices on [Site Name]?
 Very competitive
 Sometimes competitive
 Not competitive
 Don’t know

32. Thank you