There's no denying the significant impact COVID-19 had on real estate markets. Whether you're a buyer or a seller, 2020 has given a glimpse at the future of real estate.
If you're in the real estate industry, take a look at these three reasons why the global pandemic has shaken property markets across the globe.
1. Commercial Office Demand Will Drop
COVID-19 has shuttered commercial properties and has forced many workers to telecommute. As commercial offices remain empty, investors should consider the long-term impacts of this change.
Employers are starting to understand the benefits of having most or all their employees work from home. Companies are saving money by not paying for commercial property rent. They also understand the perks of the ability to hire employees globally.
Companies are no longer bound to local talent pools when they allow workers to work remotely. But this is detrimental to the commercial real estate market.
With these benefits, remote work will continue to thrive, which will lead to a steady decline in commercial property demand. To compensate, investors should consider the possibility of hybrid work models. They should also begin offering smaller office spaces to prepare for this change.
2. Virtual Property Tours Will Stick Around
Since COVID-19 has discouraged in-person interactions, this has affected the number of in-person home tours. Luckily, the evolution of home photography has made this a non-issue for both buyers and sellers.
Virtual property tours will significantly decrease the number of open houses and tours—even after the pandemic. With 360-photos, virtual tours, and video tours, people realize that in-person tours aren't necessary.
This trend is beneficial unless property sellers offer subpar virtual tours and photos. Real estate with high-quality photos sells 32% faster than properties without them.
Sellers have to step up to the plate with this trend if they don't want to lose potential buyers in the future. For those who need to sell their home quickly, we buy houses and relieve stress.
3. Home Priorities Will Shift
This pandemic has made people question what they want out of their property. Economic fluctuations, poorly stocked grocery stores, and limited space are all facets of these uncertainties. Investors will have to prepare for an influx of property buyers looking for more land and space for home gardens.
Homesteading, for example, has received increased interest. As people stay locked inside their homes and face empty store shelves, homesteading offers peace of mind. Once the pandemic has passed, and store shelves are well-stocked again, the uncertainties will continue.
Questioning the Future of Real Estate
The COVID-19 pandemic may not be permanent, but it has left a lasting impact on the future of real estate. These three market trends point will change how people approach property investment for a long time, so buyers and sellers should stay aware of these short-term and long-term impacts.
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