5 Emerging Trends in Residential Real Estate during Covid-19 Times
The COVID-19 crisis has impacted all strata of society. Investors have lost their money, businesses struggle to stay afloat and people, in general, don’t have a steady source of income.
Finding a job during COVID-19 in Australia is tough work. Several industries such as tourism, hospitality, and transport are now at a standstill. Meanwhile, the healthcare sector and essential services are overworked and understaffed.
I know things are looking grim, but not everything is going downhill during the pandemic. There is a silver lining, if only you know where to find it. The real estate sector, for instance, is actually showing a lot of promise, with residential projects becoming cheaper and more accessible.
So, if you are looking to shift your home or invest in property, then this is possibly the best time to do that. Here are 5 emerging real estate trends that you can optimize on during COVID-19.
The rise in homestay accommodations
COVID-19 has restricted people to indoors. And one of the sectors that the pandemic has hit the hardest is education. Universities are no longer holding physical classes for the students. Everything is now managed online.
Plus, students staying in hostels and rented apartments have moved to their home countries because of the pandemic. Most landowners are asking the inhabitants to move out and find other lodging options. However, this is not a feasible option for many, as they still have to pay for rent and other utilities.
In such a case, homestay accommodations are a lifesaver. It is a win-win situation for both the house owner and the tenant. A homestay is usually an accommodation option suggested to international students.
Homestay accommodations are also a lot cheaper, where the student shares their space and resources with a local family. In real estate terms, local residents are looking for properties that have some scope for expansion. This allows them to build a different wing or room to house tenants.
Fewer location limitations
With office spaces closed off, work from home is the new norm. This means that professionals can now work from anywhere, provided it has good internet connectivity. So, people can now move to the quieter suburban areas, away from the metropolitan as well if needed.
Location is no longer a priority for people who can afford to work from their homes. Buyers are looking to shift from their compact apartments to bigger houses in the quieter parts of the city.
The work from the home setup is here to stay, might as well adjust to it and make the best of the situation. Plus, moving to a quieter neighborhood is cheaper and overall a more convenient option.
So, to sum up, at this point, there is a significant shift from high-end crowded metropolitan spaces to suburbs.
Millennials focus on owning property.
Staying indoors was not a privilege most people had during the pandemic. For a significant chunk of people in the cities live in rented apartments that they had to vacate. Working professionals, students, and freelancers often prefer hostels and other makeshift lodging spaces.
In fact, until last year, millennials preferred small apartments and rented rooms over having their own house. Investing in real estate was seen as a long-term venture and youngsters were not willing to fix their money for that long.
However, with the pandemic, things have changed drastically. The general mindset of the market is that buyers want to own property and have a sanctuary to stay safe during this global crisis.
Millennials (falling in the age group of 25-35) form the significant chunk of this market demographic. And unlike the compact apartments of the past, people today want spacious homes where they can raise their families.
Reduced home loan rates and low-cost EMIs
Thanks to the pandemic, real estate prices have fallen drastically. And although the interest rates are down, it is much harder to apply for a home loan. Now is the best time to fulfill all your dreams about moving out or getting your own place in the suburbs.
In urban spaces, bachelors and working professionals are leaving for their hometowns. This leaves the rented apartment buildings and flats vacant. Hence landlords and brokers are now more than willing to attract more buyers.
Plus, the fact that banks are now providing flexible home loan rates and credit funds to property buyers is an added perk. The market might have taken a hit when COVID-19 first made its presence felt, but things have recovered.
Upper-middle-class families can expect decent or even high returns on their equity funds and shares. This puts more buying power in their hands, thereby making them the perfect candidate to buy/invest in real-estate.
In fact, some people are even pre-booking properties and developing projects so that the house is ready to move in ASAP.
RTM homes > land/under-construction property
RTM or “ready to move in homes” are basically houses that come fully furnished. All you have to do is bring your family and luggage. It requires no extra repair or construction.
Earlier, people were interested in buying land and then constructing buildings or their house any way they wanted. Today, people prefer properties that come readymade. They don’t have the time to invest in planning their homes.
There are residential development plans that come with well-planned societies. Here the buyers get all the amenities like clubhouse, gym, swimming pools, indoor playing areas, etc. And if you have a bigger budget, then getting a condo might also be a good idea.
RTM properties are a rage, especially when everyone wants instant accommodation without compromising on quality. RTM houses are usually a part of development projects and situated in peaceful, suburban areas of the city.
The rise in online property sellers
Online price comparison platforms are becoming increasingly popular. We have websites and apps that list the hot properties in the neighborhood, complete with their pricing, amenities, and other details.
Also, owners are directly posting their properties on these platforms, thereby eliminating the need for middlemen. You can approach a broker or a property agent for some hot deals as well.
But people prefer online property websites where they can directly get in touch with the owner. Even social media networks like Facebook have dedicated spaces for property listings. If you want rented apartments, you can even join the area-specific flat and flatmates group on Facebook where people post the details of the apartment.
The bottom line
Finding and building a home in the time of a pandemic is no child’s play. It is a lifelong investment, and you must carefully look at and evaluate your options before putting your money. I hope that this blog helps you in the right direction when you research your dream home. Good luck!
Author Bio: With years of experience in digital marketing, Mary helps university students with their marketing assignments so that they can meet the desired learning objectives of their marketing course. She has also co-founded Top My Grades to help students with career counseling. Beyond work, you can find her digging into the upcoming trends in online marketing.