Effects of Covid-19 on the Real Estate Industry

0

Ever since the coronavirus has spread throughout the world, nobody has been safe and been spending most of their time at home, even working from home to avoid any risks. With many businesses falling due to lack of customers, employees and to balance many job responsibilities as well as being at home is no easy task either. The real estate industry was no different, with having all the airports closing down and people mostly staying at home, it was difficult to make transactions during such hard times. The number of coronavirus cases and deaths has decreased now since it first found in the early months of the year 2020.

Source: Medium

It has been quite a virtual world for many people recently and because there weren’t any showings of properties allowed, the majority of agents would consulate their clients online. If there would be any necessary meetings, there would be obvious checkups for the temperature of the body as well as all the necessary precautions, masks, gloves and even hand sanitizers. There was a slight downfall for the real estate industry but with no surprise, the real estate industry has adapted and grown better than before since the openings of the airports and businesses whether locally or internationally.

Whenever the agent is asked upon and is told to show a home, they would take all the needed precautions listed above and have social distance between their clients which means staying a far distance around 5-7 feet apart from each other. They would be asked not to touch any surfaces without protection such as gloves to avoid any risk from catching the COVID-19 virus.

Source: Saïd Business School

Other than that, agents would communicate with their clients through calls, texts and even emails if necessary. More than that the process of purchasing or selling a home is a hassle, it has become even harder since the virus has happened which has made it quite a personal matter so people would distance themselves from any surroundings they would have no assurance about. When it comes to the global economy earlier this year, it has been very uncertain and challenging. The rates for the rentals in the real estate market haven’t changed much unless the homeowner is willing to give a certain discount on their asking price so that they can rent their households quicker.

The COVID-19 pandemic was a surprise to everyone and their yearly plans whether they had vacation plans, weddings or even schools, where children are homeschooled during the end of the year because it was unsafe to have such an amount of people in one room under such difficult circumstances.

Source: BayToday.ca

As most investors take a step back during most of their investment ventures due to the pandemic, with stricter regulations it makes it difficult to have to guarantee any profitable investment in return. The rates for home purchases have been plummeting which makes homebuyers look at it as a profitable investment as well a challenge financially to face due to mortgage rates, expenses and unknown sudden emergencies that might happen in case you are looking to rent it out on the spot.

For most people, purchasing a home during these hard times would be difficult due to the uncertainty of job stability and for others, safety of their beloved friends and family. For those who have a stable income and some cash on hand, then they would be quite interested during this time with the few months of discounted priced properties simply making it a real estate market for the buyer at the moment. There are many real estate agencies that decided from the beginning of the pandemic since there are less potential leads and for the sake of the health of all the employees, potential tenants and they would choose to either let them work from home and deal with everything online or have them be at the office but not at full capacity. Operators and owners/buyers within the real estate industry have considered the several long term effects that the Coronavirus can take on the field and the immediate changes that need to be made to be able to shift the industry back to its successful ways.

Source: Bonnie Roberts Realty

While it would be difficult to determine the long-term consequences, now that most companies whether public or private are working towards being able to deal with the pandemic in a respectful and fair manner with their administrations and their clients, the real estate market is no different either. Other approaches towards the outbreak within the real estate industry would be to get the customers and employees on the best terms when it comes to health and safety within places.

Before the pandemic occurred, the real estate industry would have already decided that the digital procedure to advance with the real estate developments could be the best service that can be provided for both the users and the potential tenants. Since the pandemic happened, the industry would have been lucky since they have some kind of background digitally and being able to deal with their clients without having to see them most of the time and having the ability to finish the transactions when possible.

Source: Home Ownership Matters

Most homeowners are now starting to think about what they will do after the crisis is over, with proper research and experience within the field, they can manage to find a profitable investment ahead of the crisis. When it comes to virtual showings, it can be arranged for an experience with the client to allow the buyer to ask any questions that they might have during the showing. After the deal is accepted by the buyer’s side, the next procedure would be to make an inspection and appraisals that need to be done regardless during COVID-19 times or not.

Read more articles on this topic at sites such as https://housesolutionegypt.com/

LEAVE A REPLY

Please enter your comment!
Please enter your name here

What is 8 + 15 ?
Please leave these two fields as-is:
IMPORTANT! To be able to proceed, you need to solve the following simple math (so we know that you are a human) :-)