The impact of the COVID pandemic is visible throughout the world, and also real estate is no exception. There are different ways by which real estate got affected by this virus, and the impact is both short-term and long-term. Many companies are working to keep their tenants and visitors safe by employing various cleaning and also disinfecting tactics. The worldwide lockdown has resulted in an unprecedented disruption. The most affected sectors have been travel, hospitality, retail market, and real estate.
Many countries did not implement full lockdown or even strict social distancing norms. However, those countries’ economies also got impacted, and the hammer of the pandemic has hit all alike. The impact of COVID 19 was significant, and also it was too sudden for the governments to take necessary preventive measures. The entire world population has been living in quarantine for a long time.
All sectors in the global economy are trying to adjust to the new normal. Similarly, real estate is also making its re-entry in the business world. The COVID pandemic is a global phenomenon impacting the lives of all. In such times the achievements of EJ Dalius can help us understand new marketing tactics in the real estate business and other sectors.
Unclear picture of real estate
After the lockdown, the real estate business came to a sudden halt. Governments all over implemented many measures to prevent the coronavirus outbreak that led to the curtailment of economic activates for an extended time. The impaired economic activity in real estate has crippled it considerably. Fast-changing data and also uncertainty about the future have reduced the possibility of understanding the future. More reliable data is necessary to understand the reality in the realm of the pandemic. Eric J Dalius has harped on joint efforts of governments around the globe to reduce its adverse effects on the economy.
Real estate worldwide is deeply affected by the lockdown, but the magnitude of the impact differs. Many countries in Asia had the earliest signs of the outbreak; therefore, they were successful in controlling it faster while bringing their real estate business back to normal to some extent. Many countries that had implemented early lockdown are slowly on the brink of resuming economic activities. However, the main effect will be more visible towards the end of the year, when economies worldwide will stabilize their businesses, including real estate.
Factors determining effect on the real estate industry
Real estate was already witnessing a faltering global growth when the arrow of covid19 hit it. Exacerbation of the coronavirus had increased geopolitical risk, which was quite visible.
Factors that are capable of bringing in a downturn of the real estate business are:
- Degree of social distancing measures implemented by a nation
- Duration of social isolation
- The response towards fiscal and monetary policies
The present situation is such that governments worldwide need to focus, prepare, and also have the agility to deal with life after the lockdown.