Covid 19 has been the centre of many different business avenues in the past couple of months. With companies actively looking after “what’s next”, there are dozens and dozens of people working in relatively delicate sectors (i.e. finance) who have absolutely no idea about what’s oing to happen in the near future. Let’s analyse what will most likely change within the real estate world.
Limited Growth (When Not Done Correctly)
According to a study made by JLL “Global economic growth likely came to an abrupt halt in Q1. If so, it would mark the first quarter of contraction in the global economy in 11 years, since the end of the Global Financial Crisis (GFC). Strong involuntary measures implemented to combat the coronavirus outbreak, plus voluntary reductions in economic activity, have severely impaired economic activity.”
They also added that “Elevated levels of uncertainty combined with fast-changing data have diminished the reliability of forecasting in the near term. Nonetheless, growth in 2020 looks set to contract for the first time since 2009. The path forward should become clearer throughout the second quarter with more data on both the trajectory of the pandemic and the state of the global economy.”
This is a simple confirmation of the fact that the whole real estate sector (especially within premises like commercial property auctions and residential property auctions) is going through a number of changes which will most definitely set the bar high for the future of the industry.
Technology and Adaptation
It’s relatively easy to say that the whole of the real estate sector is still relying on old, bulky processes which, most of the times, won’t operate the right way. There are several instances, in fact, of companies and agencies working within real estate who went through massive digitalisation-related processes, starting from their actual workflow (with the creation of new websites and applications) to many other different premises. Technology is set to become the one and only asset for many different companies in the world, especially within the real estate sector and, given the fact that COVID 19 has helped (in a way) to achieve big progressions in regards to automation and data, we can safely expect these two technologies to attack and reshape the world of real estate in the next couple of months.
COVID 19 has and will be remembered as the trigger for the evolution of the real estate sector so, like it or not, you’d better get ready for it.