Covid-19 Impacts on Real Estate Sector

Property Prices and COVID19

Meta description: Covid-19 has put a stop on the world market and the real estate industry is also affected greatly. Here is how it is reshaping this sector. 

Covid-19 has pushed the world into an abrupt halt state, terminating market growth and limiting human activities. It has driven more than 2.6 billion individuals to live under quarantines. Since then, the economy came to a standstill. It is considered a global financial crisis which has affected every economic sector to some degree, including the real estate — the property sales have decreased, the market movement of buyers and estate agents are restricted,  investors cannot follow through foreclosure sales, on top of all; renters and landlords have faced serious losses.

Here we have discussed in detail how this pandemic is affecting real estate and how it is reshaping the market around us.  

How is the coronavirus crisis affecting the property prices?

It may have frozen the property market, but the demand remains the same. People do not lose the attractiveness in the real estate properties even during this extreme health crisis, which isn’t surprising at all. Seemingly, the property’s value may not fall; however, it isn’t going to rise either. The market will remain stable, along with the land worth, which is why it’s a feasible time for purchasing but not for selling the property.

How is the pandemic changing commercial real estate?

The crises have given many sectors a challenging time; therefore, supply chain giants would consider setting up their own warehouses, leading to significant demand in storage places in the near future.


On the other hand, office, hotel, and catering properties have dealt with a serious blow. Their demand has significantly decreased, but it is predicted that the gap will be recovered shortly.The construction industry has paused and been forced to work under strict guidelines imposed by the government. 


Another change we have witnessed is the decrease in rental agreements. Landlords will be reluctant to make short term agreements for some time. But on the whole, the commercial real estate is also on hold but somehow thriving.


Should you wait with the property investments?

As established before, the attractiveness of the real estate properties remains unchained. However, some parts of the commercial sector might not be a good place to invest for a while. But other than that, the market is still holding out.


Regardless of market stability, the process of buying and purchasing might be difficult. It will be tough for potential buyers to get a loan amidst this pandemic. That’s because the banks may refuse to comply with the requests at present. It would require extra elbow grease to make investments, but you can follow through.

What should we expect in the future?

The market has realized the undeniable significance of e-commerce. In the coming years, we will be witnessing stronger and more reliable online platforms in the real estate sectors, to keep attracting buyers even during such global crises.


Experts have foreseen that, shortly, virtual reality online purchasing would be common. The buyers would be able to visit the property and spectate it in real-time by using VR and AR gear without leaving their homes. Many big names have already incorporated this advanced tech to cope with the lockdown futuristically.

EAN Content

Content shared by this account is either news shared free by third parties or sponsored (paid for) content from third parties. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website.

You May Also Enjoy

Estate Agent Talk

What can affect the profitability of a rental property?

In the residential lettings market, rents are rising, and competition is fierce. But what can affect the profitability of your BTL investment? We aim to find out here. As Stephen Clark, from Finbri bridging finance, says, “Demand for rental properties remains strong across the UK, but the market demand is not being met by the…
Read More
Breaking News


A roundup of the week’s top property and proptech news stories in partnership with Proptech-X   Table of Contents Airbnb for house shares’ raises a further £500k LettsPay partners with The Guild to provide Members with automated accounting tool Fine & Country has sights set on accelerating global growth with new appointments Highlight New Smoke…
Read More
Commercial Agent Talk

How to Choose the Best Art for Your Hotel

Artwork is everywhere in great hotels, and while it may not be something guests consciously notice when they walk in, great art dramatically impacts the overall feel throughout the hotel space. Artwork can provide any hotel space – whether it’s placed in the lobby, a guest room or suite, or in the hotel dining room…
Read More
Estate Agent Talk

Marilyn Monroe bought her own home just four months before she died.

August 4th marked the 60-year anniversary of the death of Marilyn Monroe, who would be 96 if she were still alive. Still a sex symbol today, the blonde bombshell started as a pin-up model before branching out into cinema. Famous for her comedies, such as Some Like it Hot and Gentlemen Prefer Blondes, she was…
Read More
Breaking News


Daily bite-sized proptech and property news in partnership with Proptech-X. Highlight New Smoke and Carbon Monoxide Alarm Regulation Changes for Landlords Online lettings platform is seeking to raise awareness among landlords and tenants of changes to the Smoke and Carbon Monoxide Alarm (England) Regulations. The regulations have been in place since 2015, but are…
Read More
Home and Living

How To Increase Your Homes Value With A Loft Conversion

Loft conversions are one of the easiest, quickest ways to add value to your property both functionally, and financially. If you’re still undecided about whether or not a loft conversion is right for you, read on to find out more about them and how they can help you boost the worth of your home: What…
Read More