It is no secret to anyone that the pandemic that caused Covid-19 will go down in history as one of the global crises with the greatest impact in years. Taking a step into the future has become an unknown and uncertain path, which represents a great challenge in various aspects of daily life and also in commercial and business sectors; where the real estate business sector does not escape.
The aforementioned sector has not been left out of the collateral effects of this crisis. In many of the cases this has been one of the most affected due to the social distancing schemes established by governments to avoid the spread of the virus and its uncertainty.
In this case it is also worth mentioning that in particular this pandemic is proving to be a challenge because through it the way we develop, work, evolve and consume all kinds of goods and services is being modified.
Pandemic transforms the real estate market
Through the following work we will present a brief analysis where we will address some of the negative impacts that this health crisis brought. The most important thing is also to provide tools through lines of action that could end, or stop these attacks.
The Real Estate sector today
For some time and derived from the protocol to preserve our health, most of the operations and transactions related to this sector were suspended.
With reference to this issue, it is important to concentrate efforts on the following recommendations:
- Search, obtain and consolidate various financing alternatives. Since it is important to have assets for when you have to go through difficult times and economic uncertainty.
- Evaluate and consolidate an action program which must be executed in the post-Covid process or also called the new normal. It must contain projects that allow adherence to sudden changes derived from this and other diseases, counting on a plan B or mitigation plan.
- Manage and review accounts receivable, which will avoid default and will be a significant flow of assets.
How has the residential real estate sector handled these effects?
- Due to the restrictions of free mobility, the sector was one of the most affected with respect to the payment obligations of the tenants.
- Today and due to new technological demands, consumers will prefer sets with spaces dedicated to work and that have good Internet connectivity.
- A point that was always against was the non-cancellation of payments in the established time. This allows the owners of goods and services to establish more effective strategies that allow them to reach an agreement with their tenants.
What will the real estate sector be like from now on? (Recommendations)
Remote work will become a permanent aspect of our lives. So you have to familiarize yourself with it. This option is valid both for large organizations and their staff as well as for who will be the final consumer of the product.
At this time the real impact and depth of the ravages generated by the Covid-19 pandemic in the real estate sector are uncertain. But nevertheless the new normal that includes the total digitization process will make this aspect continue to flow and emerge as it has been doing despite the difficulties up to now.