The COVID – 19 pandemic has changed our lives in ways we had never imagined. Not being able to go out, hang out and meet with friends or even family for that matter. The scare of being infected by the coronavirus took a great toll on our lives.
Not only has it affected our daily lives but a lot of other aspects as well, for instance people’s finances, during this pandemic, a lot of people lost their jobs, their savings and even their loved ones. Losses were an undeniable part of these last 2 years. Instead of traveling and going out to eat at restaurants, consumers across the world restricted their spending to only essentials – primarily food, medicine, and home supplies – and getting them delivered more often.
The sudden physical distancing has changed the way people inhabit or utilize physical space, which has further caused a fall in the demand for the commercial real estate market. For the first time in history consumers are not as inclined towards the real estate market as they used to be pre COVID due to the fall in demand for commercial or office spaces. Since, everything has moved online be it from buying one’s groceries to working from home. Tenants are emptying their spaces and moving back to their native towns and villages.
Considering the above problems and issues being faced by the real estate sector. This also happens to be a good time for new investors who are looking to diversify their portfolios by adding a few real estate projects under their umbrella. Since the demand has fallen and people are facing a cash crunch, this is a good opportunity to look for best deals and prices. One you might not ever get again. It is a game of patience wherein one must wait as things get better, offices open, people start going out.
Since, there is a clear shift towards a conscious workplace, the need for which has been highlighted by the pandemic. The lockdown has given organizations the time and space to rethink employee culture and led to the realization that sustainability and inclusivity are key ingredients in the recipe of success. Which will in turn lead to companies making smarter decisions in terms of office spaces.
An exponential increase, has also been noticed in booming of small and home run businesses across the nation during the pandemic. These businesses have grown manifolds post COVID-lockdown and will as a result of un-lock look for office spaces to accommodate their clientele and operations needs. This is another win-win situation for CRE investors as it will increase the demands for office spaces steadily.
That is when you’ll reap what you sow. The profits you made by investing at a time when no one was keen to and people exiting the sector are ultimately predicted to benefit in the future. This is the time to regroup assets where there is a massive rut in the CRE industry and ultimately, emerge profitable with the favorable winds of time.