From adopting a work-from-home policy, wearing masks, sanitizing, to observing a one-meter social distance, the stringent measures to contain the spread of COVID-19 have significantly affected the real estate industry. Buyers are shying away from house-hunting, while few sellers list their properties or allow buyers to enter their homes for viewing.
Likewise, businesses such as restaurants, clubs, shopping malls, and office buildings are closing down to limit social interactions among people. These containment measures are necessary to control the spread of the virus. If you’re keen on investing in real estate now, knowing how it is behaving should be on your top priority list.
1. Decrease of rent collection leading to losses due to reduced demand for houses
Most tenants are downgrading to cheaper houses to avoid tenant-landlord battles due to late payments. Some renters are writing off late rent payments as bad debts to avoid legal tussles. That means both parties are suffering. As the pandemic continues, the future of real estate is still unpredictable.
2. Decreased transactions in retail facilities
Businesses engaging in food production have experienced slow transactions due to social distancing measures. Some governments have shut them down to ensure the containment measures are observed. Unless such establishments adopt takeout alternatives, recording fewer transactions will be the norm.
3. Adjusted buying habits
Every situation that seems to wreak havoc in people’s lives has a silver lining. The real estate industry isn’t an exception. More buyers will be forced to shop online due to closed malls and shopping centers. That creates a better e-commerce environment. Shoppers won’t have to visit malls to buy stuff. Instead, they’ll have to order goods online and wait for door deliveries.
The Corona Virus pandemic may have forced the closure of real estate businesses. Still, entrepreneurs and clients have warmed up to online transacting to ensure social distancing works in their favor. If you’re into the real estate business, find ways of embracing virtual transaction measures to protect your health and enjoy a smooth business process.