The Impact of Covid-19 (Corona Virus) on the Real Estate Industry

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The world as of today is experiencing swift instability in economic growth due to the outbreak of COVID-19 (coronavirus) which originated from China. The rapid spread of the virus across the world has raised questions among nations, analysts and economists alike; the question, what are the effects of this pandemic globally in areas such as health, businesses, industries, governments, investments among others.

The continuous spread of the virus has called for shutdowns of all to major economic activities, factories in countries including China the world’s largest manufacturer and exporter. Disturbing as it is, the shutdowns that started with China affected several countries’ day-to-day activities because of intercontinental trades that tie these countries together. The measures taken to contain the spread has affected many industries, the real estate industry inclusive. However, the impact of the virus varies by segments of the market and the period of shutdowns. There is no telling how much impact the real estate industry will face due to uncertainty in lifting off shutdowns, quarantines, layoffs, and curfews.

The section of the industry that has felt much of the shutdowns is hotels, lodges, conference centers, restaurants, casinos (particularly in tourist areas and travel checkpoints), then to retails, luxury and residential homes. While supplies for new developments to meet previous demand on housing are being interrupted as workers, businesses, supply companies stay home, demand for real estate in connection with tourism and travels (hotels, town halls, conference centers, etc.) are relatively low. Not only do developers feel the drawback on the supply of materials but also on-demand from homebuyers. These forces coupled with other factors from various industries will drive the global economy into a downturn.

What does this mean for Realtors and Buyers?

For the time being, realtors are becoming innovative about their businesses. Instead of moving about and showing homes on the market to buyers, they are launching digital home touring to keep the market active so to say. The pandemic will affect household income due to the shutdown of economic activities. Buyers’ decision to buy a home now will be influenced by a constant flow of income regardless. While this may be the case, there will be different groups of buyers, those with secured job