City businessman Rajiv Ruparelia has said that the Covid-19 crisis has caused a negative impact on Uganda’s real estate business.
Discussing the survival of business (real estate) post covid-19, the Managing Director of Ruparelia Group of Companies said due to the current lockdown, many of their tenants will not be able to make it back to their work places due to rent arrears and unfinanced loans.
President Yoweri Museveni in March this year suspended among others operations of arcades as a way of controlling the spread of the pandemic in the country. So far most traders have spent over two months without working.
“The real estate business is going to shrink, we are going to lose tenants after the crisis due to rent arrears,” Rajiv said on Saturday during the Indian Business Forum Webinar.
He also advised fellow property developers and managers to talk to their tenants in an attempt to have a solution for the issue of arrears.
“As Ruparelia Group we have waived penalties on the late payment of rent and have deferred arrears to three months and six months for big tenants like those occupying warehouses.”
Rajiv further revealed that the cost of operating properties has gone up ever since Covid-19 reached Uganda. He said as property owners they have to ensure proper hygiene by providing sanitizers and temperature guns at every entrance and exits of the buildings.
“You also have to employ people who oversee the procedures.” He emphasized
Ruparelia Group of Companies founded by Sudhir Ruparelia is one of the biggest commercial and residential property owners in Kampala city and around Uganda.
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