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REAL ESTATE and COVID-19

Name

Course

Tutor

Date
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Part A

The covid-19 pandemic created a global economic recession that affected all economies

globally; real estate is one of the most affected sectors. The measures placed by WHO to contain

the virus saw people not going to work; hence could not manage to pay their mortgage loans,

losing their properties. An increase in the number of homeless people globally meant that rental

houses were left vacant, affecting real estate firms that depended on monthly payments from rent

to run their businesses and keep their companies afloat. The majority of the tenants had deferred

payments, while others terminated the lease payment contracts they had. The pandemic created a

challenge to the real estate sector on maintaining the value of the properties and their liquidity,

regardless of the effect covid-19 had on the economic value of properties remained the same.

Real estate also experienced unforeseen expenditure, activities such as building fumigations,

tenants' temperature check-up points, and sanitization spots in buildings were unplanned. Due to

the social distancing measures, remote working was encouraged; hence access to data was

mandatory. Buildings that had not invested in data and WIFI connectivity had to install them to

ensure the safety of the tenants.

The most affected real estate subsectors are; hospitality, developers, industries, offices,

and retailers. However, the situation is now changing as the economies are gradually opening as

we phase the recovery phase; property leasing increases progressively as businesses are opening.

Real estate managers managed the crisis through three phases; response entailed closing offices,

encouraging staff and clients to work from home, and adhering to safety measures to reduce the

spread of the virus. Second is recovery; construction activities are increasing, more spaces are

opening up for letting, encouraging staff and clients to be vaccinated, and increased occupancy

rates in offices. As the recovery phase advances soon, it will lead to the third phase, the thriving
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phase that is yet to be achieved; increased vaccination rates will pave the way for the thriving

phase in the sector.

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Annotated Bibliography

(n.d.). Forbes. https://www.forbes.com/sites/petertaylor/2020/10/11/covid-19-has-changed-the-

housing-market-forever-heres-where-americans-are-moving-and-why/?

sh=228853d861fe

The article's central theme is that; since COVID started, areas considered less desirable, less

educated, and having unfavorable climates (warmer) are now in high demand thanks to the

pandemic as people move to less populated areas. The source relates to my topic in showing how

real estate dynamics are changing due to COVID; real estate companies are currently considering

developing the less populated areas, unlike previously where development was more focused on

urban areas. I will use the information to show how there has been a noticeable preference shift

from consumers affecting how and where the real estate industry will focus its investments.

Sethi, M., & Mittal, S. (2020). Improvised rental housing to make cities COVID safe in

India. Cities, 106, 102922. https://doi.org/10.1016/j.cities.2020.102922

The journal addresses how rental houses are being improvised in India to make the cities safe

from COVID. It addresses the issue of safety as a significant concern to the developers as

buildings had to be renovated to increase tenants' safety during the pandemic. I will use the

information to show how real estate developers need to focus on health safety despite the need to

maximize space; as buildings are safe from fire, health is a key safety component.

Bloom, J. (2020, June 11). Coronavirus may have huge impact on property markets. BBC

News. https://www.bbc.com/news/business-52977890
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The source covers how the pandemic affected the marketability of properties in the UK. The

source relates to my topic in addressing how property markets have been affected by the

pandemic; due to the virus's uncertain nature and different strains, people are unwilling to buy

properties and focus on health first. The source will show how real estate has not yet recovered

despite other segments of the economy being in the recovery phase.

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References

Bloom, J. (2020, June 11). Coronavirus may have huge impact on property markets. BBC

News. https://www.bbc.com/news/business-52977890

(n.d.). Forbes. https://www.forbes.com/sites/petertaylor/2020/10/11/covid-19-has-changed-the-

housing-market-forever-heres-where-americans-are-moving-and-why/?

sh=228853d861fe

Sethi, M., & Mittal, S. (2020). Improvised rental housing to make cities COVID safe in

India. Cities, 106, 102922. https://doi.org/10.1016/j.cities.2020.102922