When the dust settles: Real Estate trends in the aftermath of the Covid-19 crisis
The COVID -19 pandemic has brought about a massive shift in the way we live and work. The onset of “new normal” has led to unprecedented challenges, but also new and unique opportunities. In terms of the real estate sector, while many experts are still in ‘wait and watch’ mode, it is worth noting that the real-estate industry has been particularly quick to respond to the changes. In fact, the transition to the next generation of real estate capabilities has been accelerated, as has a customer centric focus is regulations, services and strategies.
Buildings that enhance quality of life
Buyers are seeking out buildings that address their health and wellness concerns. Built spaces, which are comfortable and functional not just affordable, are attracting investors across all budgets. To add to things, the growing necessity of home-offices is increasing the demand for flexible living spaces and functional capabilities.
Technology has taken over
One reason for the global economy remaining relatively resilient is the availability of digital solutions. The pandemic, because of social distancing requirements, has led to the adoption of convenient and cost-efficient ways to conduct human activity. From property selection to transactions and customer experience, digitisation will dictate the way the real estate industry is run, henceforth.
In favour of the buyer
In the aftermath of the Covid-19 crisis, the real estate sector is expected to face a buyer boom due to factors like low interest rates and dipping property prices. Markets all around the world are incentivizing buyers. For instance, reduced service charges and more favourable loan-to-value ratios are further encouraging first-time buyers, in the UAE.
Demand is beginning to firm up
The concept of owning a place has also gained in importance, post the Covid-19 crisis. People who were previously living in rented spaces are looking at gaining greater control over their environments. Even among existing homeowners, the desire to upgrade to enhanced user experiences will drive demand further.
The UAE markets are well placed for growth
Reports say that property prices in the UAE have depreciated more than many other major markets. In conjunction with underlying strengths, this translates into an opportunity for buyers. Dubai, one of the world’s most lucrative real-estate markets, is being singled out for post-pandemic growth, by experts.
Changing the ways we live
Although the uncertainty around a post-pandemic world has not passed, living spaces of the future will have to be reimagined, in line with the lessons learned from the crisis. The remote working trend is here to stay and future homes will need to be flexible enough to accommodate this. The value proposition in real estate will now include factors such as ‘health and wellness’, ‘transparency’ and ‘technology’.
Owing to extensive lockdowns and months of quarantine, plenty of construction projects across the world had been in a state of suspended animation. Though the global property market will continue to remain under downward pressure, with economies opening up and striving to recover from the slowdown, there’s still a lot to be optimistic about.