The COVID-19 Pandemic has affected different industries in varying ways. While some sectors of the economy have faced disastrous consequences, others have emerged better than ever.
When it comes to the real estate industry, there have been mixed reactions. Some believe that it has quite badly. While others state that some sectors like residential real estate have never seen such high demand.
If data and metrics are to be believed, property prices in the country are soaring to new heights. This means that investing in real estate can be a great decision that will help you with immediate gains and profits.
In this article, we speak to David Ebrahimzadeh from Corniche Capital. We request him to guide us on making real estate investing decisions during the Coronavirus pandemic.
Why Homeowners are Interested in Investing in Real Estate During the Pandemic?
According to David, the following are some of the major reasons why homeowners are interested in investing in real estate during the pandemic-
The Need for Larger Homes with Open Spaces-
Being cooped up in small homes with no places to go has resulted in a lot of stress for families. This has been particularly tough on children who have been unable to go to the playground or have physical exercise. This has prompted homeowners to invest in bigger homes with front lawns and backyards where kids can play and exercise in their free time.
A New Office Setup for WFH-
Some of the biggest companies in the world are not going back to the normal working routines, once the pandemic ends. WFH has demonstrated a lot of benefits for these companies. For individuals, it means that they can no longer keep using the kitchen table or the bedroom as their office. The need for a separate room to convert into an office means bigger homes.
Leaving the Pollution and Busy City Life behind-
A lot of data indicates how families are moving out of cities and preferring suburban homes with wide-open spaces and a lot of natural surroundings. This is helping them stay healthy along with limiting their interactions with other human beings. People prefer staying within themselves and trying to create as many healthy habits as possible.
Low Prices and the Promise of High Growth-
A lot of neighborhoods in the country that were deemed to be too far from the city are now worth their weight in gold. People are looking at great deals in such neighborhoods. Once people start settling, markets, schools, and other infrastructure are likely to follow suit. Getting your hands on a developing part of the city is always a good deal that no one wants to pass.
Spending more time with Family Members-
Many individuals have now realized how incredibly rewarding it is to spend time with their children, do common activities, and have fun. This is why they feel that bigger homes will enable them to create more opportunities for having fun. For example, a bigger yard means tree houses, good basement space means game rooms, and so on.
Are there any areas of Real Estate Investments you should be wary of?
According to experts, while residential real estate is showing a lot of promise for both homeowners as well as real investors, things are different when you look at commercial real estate.
With offices reeling under new rules being drafted every day, maintaining one is proving to be difficult. The monthly rental does not stop even when you are forced to shut down the office when subsequent waves of the pandemic hit us.
This is why experts suggest that investors for the time being should keep themselves away from commercial real estate. On the other hand, if you are someone that wants to buy your own office space for your personal business and usage, you can get some great deals if you look long enough and do your research.
The Bottom Line
The real estate industry is seeing a lot of promising action during the pandemic. This means everyone from homeowners to real estate agents are scouting for the best properties and deals in the market. If you would like us to share more information on any specific topic in the article, let us know in the comments below.
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