LONDON, UK / ACCESSWIRE / May 18, 2020 / Apart from putting the immense burden on the healthcare infrastructure, the coronavirus pandemic has massively impacted various sectors of the industry - entertainment, hospitality, among others. However, the effect on the real estate industry has been unprecedented - especially as physical assets remain non-operational amid the global lockdown. Miki Dutta, the Director of Bracken Real Estate has shared his views on the impact of coronavirus on the real estate industry.
About Miki Dutta, Director, Bracken Real Estate
Miki Dutta is a serial entrepreneur, real estate investor, and developer based out of London. He is currently serving as the Director of Bracken Real Estate, which is one of the most prominent real estate firms in the UK.
Apart from these ventures, Miki is a keen advocate of social entrepreneurship and a venture capitalist who frequently invests in distressed businesses across the world.
Coronavirus Impact on Real Estate and Miki's advice for revival
The COVID-19 pandemic has triggered the concept of social distancing, as a result of which the idea of socializing has gone digital, as opposed to the traditional interaction in physical spaces. Retail locations, office spaces, and many other physical properties have literally become non-operational. Moreover, real estate projects under development have ceased owing to the lack of labor and construction materials. To put it simply, real estate assets have become almost non-performing in terms of the steady returns those used to fetch for investors.
Miki suggests that the major challenge lies somewhere else. He explains, ‘The real estate industry is predominantly slow-moving and operates under the concept of future cash flow. The coronavirus pandemic has raised major questions on the potential of this sector to re-open any time soon, as the restrictions related to physical gathering might last longer than we are anticipating. On top of that, the economic impact of the pandemic has shrunk the purchasing power of people, thus slowing down the residential vertical of this sector.'
As the real estate industry faces the worst hit since the 2008 economic crisis, Miki advised real estate players to first make decisions aligned to the safety and health of all employees and tenants. - ‘They are the stakeholders and the backbone of your business. Make sure that they are well-protected.'
He further opined that the smartest move would be to try and anticipate the possible course of this sector post the COVID situation. Miki firmly believes that the pandemic will cause a long-term impact on this industry, and the dynamics might change forever.
He concluded - ‘Firstly, focus on centralized cash management, and re-strategize capital-spending. Secondly, digitize your business to the greatest extent possible - everything from tenant and customer interaction to payment procedures. This will help you sustain even if physical interactions are further delayed. Lastly, focus on each commercial tenant specifically, rather than making generalized portfolio decisions.'
Media Contact Details:
Company Name: Bracken Real Estate
Contact Miki Dutta: [email protected]
Website: https://brackenrealestate.com/
Instagram: https://www.instagram.com/itsthemdshow/
SOURCE: Bracken Real Estate