The worst tragic causality of any terrorist attack is the human life. The economic impact of terrorist attacks and impact on real estate in particular is unavoidably in the minds of many in the immovable property industry. After the serial bomb blasts in many Indian cities last month, a number of questions have been raised on how terrorist attacks could have an impact on the real estate markets across India. With worries looming large over similar attacks in other cities in the near future, it is time to reflect on some of the short-term remedies.

There are two mediums through which terrorism devastate the economies. The terrorist attacks have a direct impact on our economy by destroying productive physical and human capital. Secondly, terrorism also increases the level of fear and volatility which could have a larger impact on the overall economic activities. From a short-term perspective, in the face of uncertainty, many corporations have delayed their realty(buy, sell, rent property) decisions. Many companies have only renewed their leases rather than moving to new business premises for volatility reasons. Global corporate real estate expansion is witnessing a slow turn from the second gulf war. Premiums paid for prestigious buildings and the highest floors have also marginally declined all the cities across India.

Many major firms adopted a multi purpose premises strategy facilitated by technology and gone in favour of decentralisation. Global firms even considered a greater regional and international dispersal of headquarters in India activities to avoid business damage. The terrorist threats have come as a hindrance on the way of diversification. If the threat continues, it will mark a decline in the number of global players showing their interest in the Indian market. Automatically, the reality sector( including buy, sell, rent property) will experience a down turn.