Stankevicius International: How coronavirus has influenced global real estate market
As the COVID-19 pandemic hit the world unexpectedly, most of the industries took a huge blow in the profits and incomes. Some industries fired a lot of employees because they were not making any income during the pandemic and some gave unpaid leave of absence as well. While this is still happening a lot of people are now focusing on the matter in hand rather than planning a future where they will live a luxurious life. Real estate market took a hit.
Even though the real estate market is down, real estate developers now can think of new ways to innovate the real estate business, for instance building hospitals and wellness centers for the time being. Also building eco-friendly apartments will be the first choice for real estate, because people won’t be able to afford a mansion or villas for at least coming few years as the pandemic may keep hitting all around the world. People will first focus on the day to day living and needs, and then they will focus on collecting a considerable amount of savings as if another wave of pandemic happens as people have to be ready for that as WHO is warning the society about it. Real estate will be the last option.
COVID-19 has hit all the industries equally and dropped the income and profit margins by a lot. Nobody will get an increment in their payroll for a few months, and the bonuses will be reduced to the minimum as companies are trying to survive to overcome the odds of the pandemic. The last thing people will go for is real estate because they have to fill their essential needs first. Real estates won’t be a top priority as they have to live first to have a luxurious life. Real estate will suffer as the hotels and all other industries will be down but developers can focus on hospitals and wellness centers for the time to come. However, for professional investors, the current market situation may be very attractive as the real estate market is on the discount right now.