2020 was a year like nothing else ever before. The pandemic affected almost every aspect of life and work in a manner nobody had ever imagined. Though not everything had to sustain the same amount of shock. For example, if we talk about business, online businesses have seen a surge in profitability, on the other hand, for many offline businesses it has come down to mere survival. There is one question that has occupied the minds of many individuals especially those in the property business: What has been the status of real estate business during the pandemic?
Well, the real estate business has seen many ups and downs throughout this past year. There are many reasons to cheer up and some are worrisome. However, that majorly depends on what segment of the real estate market you deal in. To understand the impact of COVID on properties better, let us have a closer look at them:
Three months into 2021, the future is still not pretty clear as to what will happen. In such a case, building something new may be a bit risky. That is the reason, the properties that are under construction have come to a halt. The fear of government regulations and unexpectedness in the flow of demand has forced the construction companies to wait.
Yes, what you make with your rental business is mostly dependent on your location. Big cities across the world have seen a significant drop in the rent prices, whereas some other cities (both big and small) are observing good going with rentals especially due to resumption and reopening of places with the rollout of vaccines.
The case is similar to the lease. However, once the pandemic is over, there will be a boom that will bring along changes in rental terms, lease, and agreements, etc. People interested in property may need to learn new methods to carry out rental and lease negotiations after COVID-19 which will serve them well. A property lawyer may be of help here.
The pandemic has led to a considerable slump in international investment in real estate. Since there are still high restrictions on travel abroad, investors are not willing to put their money on properties they cannot observe. Though, there is a good hope that in the coming months, the international buying will pick up again – so much so that it may even break previous records.
With so many restrictions still around, what’s truly helping business is technology. Like any other business, the players in real estate are also making use of technology to carry on and thrive. Whether it is online booking or a digital tour of the property, the technology is helping both the buyers and sellers alike. What is more, this trend is here to stay.
We can see the light at the end of the tunnel. As we gain control over COVID, we hope that the situation in real estate will get better than even pre-pandemic levels. What do you plan to do, once the pandemic comes to a close?