The Top Real Estate Trends Emerged from the Impact of COVID-19 Pandemic

The market had started a price drop that continues after the pandemic. However, properties linked to sectors such as logistics or retail could benefit from the situation, while the branch of offices reinvents itself.

The coronavirus pandemic appears to be far from being resolved, and collateral damage is already visible in many sectors. However, the impact of COVID-19 in the real estate sector is still uncertain. Experts point to changes in the market and a drop in both prices and operations. However, most of them agree by stating that, contrary to the opinion of many consumers, the recession that is looming on the horizon will not have effects similar to those of the 2008 crisis, when prices fell as far as 40 %.

In any case, the impact of the pandemic will not only be seen in the residential sector, but offices, industrial buildings or commercial premises will suffer the effects of COVID-19. This is pointed out by several reports in which an intense transformation of the sector is foreseen, which, however, is difficult to limit.

Residential

The downward trend in prices that began before the pandemic started has been consolidated with the expansion of COVID-19. However, the effects of the situation go beyond prices. The moratoriums on the payment of mortgages and rents during the state of alarm came to alleviate the effects of the increase in unemployment and the reduction in family income. However, with the arrival of the new normal, the scenario continues to evolve.

About preferences, given the new work patterns, a certain predisposition to look for houses with comfortable workspaces is beginning to appear. In the same way, there is growing interest in types of houses with open spaces in the form of patios or terraces and, even, in suburban locations with more accessible green areas.

But the transactions continue to show contention. The market is recovering after months of inactivity, but very slowly. Uncertainty slows down the intentions of sellers and buyers who were not in a hurry, while those to whom it is urgent to sell must adjust their expectations to the changing reality of the market. Many experts point out that opportunities will be generated for investors and that, in many cases, the price drop will not be so influenced by the health crisis, but by intense negotiation between the parties.

Offices, logistics, retail and other sectors

Beyond the residential field, COVID-19 will have a notable impact on the office, logistics or retail real estate market. The new consumption trends, restrictions imposed during the pandemic and coppice or change in work patterns are just some of the causes to which experts say as key to transformation.

Offices

Social distance has been imposed as one of the highest recommendations to curb the risk of contagion, and that directly affects traditional offices. The same happens with the experience of remote work that, during the months of the state of alarm, has been key to maintaining the activity of many companies. All of this is reflected in the office market.

Decreasing the concentration of people in workspaces seems to be one of the maxims that the sector will set, making teleworking an increasingly common practice. Although it is still early to talk about reconversion, the truth is that everything seems to indicate that the dynamics will change. Many bet on scenarios in which there will be more space for fewer people and, even, the proportion of collaborative spaces will be enhanced or of meeting.

Logistics, retail and others

Retail trade, such as the inn, has been one of the hardest hit during the pandemic. Many establishments did not lift the closure again after the state of alarm. Those who found their way of subsisting in electronic commerce or home delivery have seen how new technologies have become a lifeline for their businesses. In any case, in real estate terms, the main changes must be sought in the way of hiring commercial premises, mainly, given the uncertainty that the pandemic maintains.

Storage needs, however, have increased during these months, thus boosting the logistics sector, which, in any case, is also modernizing. Warehouses and warehouses are booming to meet the demand for electronic commerce that has grown in the wake of the coronavirus.

Be that as it may, the future is uncertain and, although there are already several changes that can be seen, the impact of COVID-19 on the real estate sector will depend, to a large extent, on whether time consolidates the work and consumption models sponsored by the pandemic, its duration and the behavior of the economy.

Online real estate market during COVID-19 Pandemic

Since social distancing protocols bars people from going out unnecessarily and scheduling meetings calls for greater risks, the agents and customers have taken over the online portal of real estate. SetSchedule is one such portal which is revolutionizing real estate practice in the United States via its web-based platform which integrates a wide array of technological support and add-ons to make up for a seamless and efficient real estate experience, both for the agents and customers.

SetSchedule is an all-in-one-place platform with a relatively easy interface. Inc. Magazine named SetSchedule as one of the top 5000 fastest growing companies in the U.S. SetSchedule takes up the 533 rank in the all coveted list for 2020 and 196 for 2019.

SetSchedule was launched because we knew that we wanted to take technology to the next level in the real estate space. Today we provide users across the country with virtual cutting-edge tech tools, and we are still developing to bring additional unrivalled technologies. Despite the current climate, we are still growing and bring more product to market, with a clear obsession over connections and strong servicing of real estate pros and consumers alike!”, shares SetSchedule CEO, Roy Dekel