Earlier this year, the world halted to a standstill as the coronavirus spread to countless countries. The government imposed strict rules and regulations. People are staying at home, unable to go to places to socialize. Offices adapt to work from home arrangements. Aside from people's lives, businesses are also severely affected due to the pandemic. Major companies cut corners due to the lack of business transactions. Some even lost their jobs due to the virus.
One of the most affected businesses is the property business. Aside from the short-term effects, it also has changed how customers and business owners alike view the real estate business.
Short-term Changes in the Property Business
During the first few months of the pandemic, the government implemented strict physical distancing rules. Because of this, any business-related transactions, from simple night outs in the restaurants to large-scale business meetings, have effectively halted. And the property business is not exempted.
In the initial months following the outbreak, strict rules restricted property valuations and home and property viewing for potential buyers. Even those who have completed transactions had problems, such as restrictions in moving into the properties. Due to the lack of livelihood and the decreased income, many lessors are worried whether their tenants can pay on time.
Meanwhile, the development of new properties is also put to a temporary stop. Many on-going construction projects are left unfinished. These delays potentially cost thousands, if not millions, worth of budget.
In the past few months, restrictions on the property business have been slowly lifted. More offices are back up and running. Potential buyer visits and show homes are now permitted. However, the government is still imposing physical distancing rules when necessary.
The government has also allowed construction projects to resume, provided that they will adhere to the recommendations and guidelines implemented by the local councils. One of the recommendations of the government is staggering staff arrivals, which improves social distancing and pressure on transportation.
Long-term Changes in Property Business
Aside from the short-term implications of the current pandemic, many experts in the property business expect major changes in the industry.
One of the expected outcomes of the pandemic is the sudden surge of demand in the property business. Many business owners are hoping that it can somehow revert any financial damages due to the outbreak. However, many experts predict that there will be a change in how people view property business.
One expert, real estate agent, predicted that the decrease in business transactions would continue even after the pandemic. Many people may avoid any large-scale renovations and home improvements until the economy regains stability. Another possible effect of the Covid-19 is the closure of physical stores. Since the outbreak, people are preferring to shop online, decreasing the demand for commercial leases.
Aside from finances, both the government and the companies are looking to change the workings in the property business. Local councils can impose new building codes to adapt to the new normal.
Changes in Customer Preferences
Customer preferences with regards to choosing and buying property are also severely affected. Since the outbreak, more people are looking for bigger spaces for their homes and properties. With regards to the location, many prefer the country areas, away from the overpopulated urban setting. And since work from home arrangements are slowly becoming the norm, workers won't need to go to offices as often as before.
Many potential buyers are also considering the importance of suitable outdoor living space. Because of this, landscaping and decking businesses may potentially be in-demand, especially in the cities. Many homeowners will also appreciate the value of cleanliness and health more than ever. When it comes to building their homes, people will prefer materials that are easy to maintain and clean. For outdoor living, composite decking will continue to rise in popularity.
Many other possible changes can occur within the property business. Regardless of these changes, property business most likely will never return to the way it was. Time can only tell whether that's a good thing or not. For now, all we can do is wait until the pandemic completely settles down.