As every month I try to identify trends and developments of the real estate market for Europe and America.
We are talking about two different continents, with different histories but right now there is a word that unites them: Covid 19.
Some newspapers believe in the economic recovery from May 2020, the website realtor.com points out a rebound in demand despite the loss of 25 million jobs. It is true that in Usa, May is statistically a strong month for the real estate market but it seems very strange to me.
Other sites are reporting a recovery in the luxury property segment while Remax says a 30% contraction compared to May 2019.
I honestly do not believe in all the data I read, I make a simple reasoning, in your opinion during the Covid 19 how many people have the desire to buy a house?
I think many families have postponed the purchase when the situation will be filled by prioritizing other things. It is understandable why Covid 19 has destabilized our lives, especially the way of life in society has changed.
People are much more wary when they go out, the fear of contagion is high and in America and South America (e.g. Brazil) Covid 19 situation is disastrous. In these 5 months in the real estate market have changed the modalities:
- Smart working
- Technology (big data, artificial intelligence)
Future demands will be increasingly directed to smart working, in practice without doing many words employees can work from home without going to the office.
Companies are changing work’s organization with employees, for example office space will be larger, all connected to the internet with technological facilities to maximize productivity and well-being.
Those who can invest in the real estate market should consider smart working as a priority because the concept of work (space) has changed.
Some short rental sites are expanding their business by offering the possibility to customers, rentals in homes where there is fast internet connection, Wi-Fi and comfortable spaces to work.
Some firms instead of renting an office annually, prefer to rent a house for their employees for “x” time saving considerably on rent.
Real estate market has been revolutionized from a technological point of view in recent months, professionals in the industry (cause lockdown) have offered “virtual tours” to their customers through the use of Hi-Tech platforms.
With virtual reality, customers have taken a guided tour of the house, then there is the possibility to have Pdf files with all the features of the property. Advantages of the technology are:
- Save time
- See more properties on the market
- Pdf paper with details
- Reduce the risk of contagion
Updates will follow in August 2020.