By Jared Oundo,
The property developer, Myspace Properties, among other firms in the real estate industry has said that the Coronavirus epidemic might trigger the costs of houses and property to shoot. Several institutions around the world are anxious about how coronavirus will affect the global economy now that the world is a global village. A sequence of grey economic numbers from China have revealed to the world a hint of what might lie ahead, as nations embark on draconian coronavirus suppression measures. Globally, comparable economic shocks appear unavoidable as virus control measures are intensified.
Since the virus broke in China many things changed abruptly. Most supplies couldn’t be delivered as well as experts couldn’t travel. China, Italy, USA, UK among other Tigger economies being key sources of capital, raw materials and labour, accessing them is a challenge. With the travel bans due to the risk of spreading the virus, institutions has to seek alternative solutions which are way more expensive. This has delayed projects something that will trigger the market.
The firm has cancelled some of their planned events following president Uhuru’s statement on Covid 19. The company says some of the investors who were to fly in have cancelled their trips. The Company CEO was in Ethiopia early this month to meet some investors and he has also cancelled foreign trips as extreme measure as directed by the president.
Speaking in Mombasa, the CEO Myspace Properties, Mwenda Thuranira, expressed his concern about the effect of the global epidemic Corona Virus and the negative impact it has brought in the real estate industry and in the economy at large.
Thuranira, said “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 cancellation of planned transaction has made us hold on some of our planned projects. This will not just affect us but will have a huge impact in the economy as a whole.”
The email sent to them by one of the investor’s 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.”
Coronavirus is impacting all facets of the industry, including the industrial market. Its effects on the financial markets, manufacturing and more, coupled with the fact that it’s an election year to major economy like USA, may not bode well for world economy. Trading on the Nairobi Securities Exchange (NSE) was recently suspended towards the close of the market as panicky investors made indiscriminate sale of shares.
With such and epidemic it is expected that buyers across all asset classes to be cautious. When there’s uncertainty in the market, people are less likely to pull the trigger.
“In general, consumers are cautious and careful right now. People are always concerned when the stock market hits a dip like it is, they want to be assured that they’re safe. It’s going to take a couple of months to see where this goes,” said Lily Sego, University of Nairobi economics scholar.
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ABOUT MYSPACE PROPERTIES
Myspace Properties is a Real Estate and Property firm that offers a unique and unprecedented value proposition covering all the core skills and requirements fundamental to the success of a real estate venture. It is also among the firms incubated in Nairobi Securities Exchange (NSE) Ibuka programme. Myspace first appeared in the KPMG Top 100 rankings in 2018 and then 2019 became the top Real Estate firm in the list. Myspace appreciates the industry players for acknowledging our objectives and efforts to growing and becoming influencers within the Real Estate Industry.