What to Know About Real Estate Amidst Covid-19?
Author : Marketing Team | Published On : 13 Apr 2021
The ongoing pandemic continues to have a profound impact on sectors across the world. In this scenario, real estate deserves a special mention. Unlike many other domains, many investors are convinced this is the most apt time to invest. However, priorities have changed. Businesses are in dire need to start pivoting and adjusting their processes to survive — and this includes the commercial real estate (CRE) market. Properties are burning through their reserves, unlikely to last beyond this year. Given the uncertainty about the length and scope of the disruption to the economy and financial system caused by COVID-19, as well as the path to recovery, investors need to act fast and smart to find the best investment alternatives.
Is Real Estate Still a Profitable Investment?
It is beyond doubt that real estate has been affected by COVID 19 across countries. However, it can still be a worthy investment.
Fundamentally, real estate works based on the demand and availability of properties. To explain, if the market has many properties but fewer buyers, the rates can go down drastically. Also, the prices increase provided there are many buyers as opposed to a few properties.
The contemporary investors are in search of much safer investment options. There is a prevalent tendency to think beyond the typical fast-yielding investment options. The need for safety is at its peak due to the pandemic. Many are considering real estate as the best investment during COVID-19. A deterrent for property buyers has been the time-consuming nature of real estate in terms of returns. However, the current pandemic has brought in a change in this approach, and many realize the importance of secure and safe investments and are resorting to real estate during COVID-19.
Real estate may fail to yield fast results but is undoubtedly less unstable than the other market-driven investments. In the current scenario, this makes real estate a safer option. In the imminent future, the requirement for residential properties is sure to increase as millennials will be the key requirement drivers. The prevailing situation marked by uncertainties is the determining factor for them.
The pandemic has made the world and its inhabitants exceptionally helpless. Safe distancing or staying at home is the new norm. As a result, offices had to rely on work from home options. Office spaces had become isolated zones, and many have moved their office spaces to suburban or less prime areas.
In the pre-COVID-19 times, commercial properties topped the list of most preferred investment options. As an impact of COVID 19 on the real estate market, the consumer behavior analysis is showing a different trend and is currently oriented towards residential properties. Mostly, they seem to prefer affordable and mid segments.
In short, COVID-19 has had an impact on the real estate industry. However, it should be termed changes in priorities. Overall, the perception of real estate has not changed much as a safer investment. Therefore, it can be concluded that COVID-19 has put more emphasis on real estate as the best option for those considering safer investment during the pandemic. Yet, a deep analysis on market trends in the preferred location must be conducted.