Developers fear project delays as coronavirus hits home : The Standard

Property developers are bracing for tough times ahead as the effects of the coronavirus pandemic continue to ravage the global economy. They say adverse economic shocks appear unavoidable as measures to control the spread of the virus are intensified, with key projects now set to be delayed. Since the virus broke out in China in December last year, many things changed abruptly. For instance, most sectors, including the building and construction one, can no longer access essential materials due to border closures.

SEE ALSO: Why 2019 is a year real estate would like to forget

This has forced firms to seek alternative logistic solutions which are way more expensive, disrupting key projects that are now likely to take longer than expected.   Myspace Properties Chief Executive Mwenda Thuranira said the firm has cancelled some of its planned events and projects as a result of the pandemic. He said some of the investors who were to fly in to discuss various projects have been forced to cancel their trips.

BISHOPS: We fear corona like the devil - The Nairobian   Read Now »

“Our clients told us they are not permitted to enter the country and therefore can’t travel. They sent as an email postponing their planned visit. Such cancellations of planned transactions have made us hold on some of our planned projects. This will not just affect us but will have a huge impact on the economy as a whole,” he said in Mombasa. An email sent by one of the investors read: “Unfortunately, due to the Covid-19 outbreak and following government’s guidelines, we are no more holding physical meetings and are working from home during at least the next two weeks. We will discuss internally to assess what is the best way forward and come back to you in the coming days.”

SEE ALSO: Birds of paradise

Mr Thuranira said if the current situation persists, many people will not be able to pay rent or service their mortgages. He urged the government to incentivise individuals and companies to enable them to cope with the tough economic times.  

Are you suspecting that you have coronavirus? Before you rush to the hospital, do this quick easy self-assessment test. #StayHome #WashYourHands HERE.

Related Topics

Real EstateCoronavirusHousing