REAL ESTATE INVESTMENTS IN TIMES OF A PANDEMIC (CORONAVIRUS)
We live in times of enormous uncertainty worldwide and the economic, social and political consequences of the pandemic caused by the #coronavirus or #COVID-19 as it will be called in an abbreviated form still cannot be foreseen. How to invest then in the future on real estate?
From my experience as a Real Estate Broker, I lay out the key aspects to keep in mind for investors and buyers in the acquisition of properties in this new configuration of the real estate market.
Thus, the starting point for this forecast depends on the timing. If the #quarantines are short term (which is highly unlikely), there would be a slow but sure return to the market conditions we knew before the epidemic propagated globally. However, if efforts to contain, mitigate or suppress this pandemic virus continue on a long-term or seasonal basis, as several studies have already indicated, society in general will have to make substantial changes in their daily lives.
Let's see what those changes would be below:
1. PROPERTIES WITH LARGE AREAS.
With the psychological effect of prolonged quarantine, human beings will find it increasingly difficult to adapt to reduced spaces between walls, which will only represent a limiting and conditioning narrowness to their way of life and something that adds to the risk factors of diseases including depression itself. It is imperative then to expand the spaces of homes and leave behind compact constructions.
2. PATIOS, TERRACES AND BALCONIES.
In addition to the above, the need to have a space within the same property where its inhabitants are allowed to receive the sun, the air, the view of the stars or the sunrise or sunset will be an imperative need for the welfare of the home itself. Thus, interior residences, poorly lit, poorly ventilated and enclosed spaces will be at a serious disadvantage in the real estate market. In the same way, apartments with large terraces on the second floor will gain an additional relevance that will allow them to increase their value in the medium to long term.
3. HOME OFFICE.
Perhaps the most relevant aspect for the productivity of any person, whether independent or employed, will be the ability to work at home and have 100% connectivity. A property that has this space, separated from the bedrooms and social areas will be widely appreciated in the market because the trend of working at home is a reality that is here to stay in people's lives.
4. FUNCTIONAL CONFIGURATIONS.
The lesson to the market is clear, knowing how to prioritize what is truly important is an imperative need. Thus, given that real estate will tend to be more spacious, the economy must continue to set a guideline for its commercialization. In this sense, obtaining a better balance between lower cost of quality materials and less excesses with more focus on what is truly functional will be the key point to achieve in every property that comes to the market.
5. SPACIOUS KITCHENS.
Speaking of needs, food represents for any living being not only its survival but a lifestyle itself. In this sense, having spaces where we can enjoy the way we prepare our food will be a fundamental aspect in the decision to buy a property. American style kitchens with bar or island type integrated in them provide the additional advantage of being a place of cooking and also of gathering at the time of sharing each dinner.
6. RE-ACTIVATION IN THE HOUSING MARKET.
A trend that had been occurring in recent decades was the slowdown in the construction and marketing of houses in order to prioritize compact apartment units on a smaller area. The current situation presents a significant turning point for this housing model. Thus, both homeowners and builders who prioritize construction projects of town and country houses will be rewarded in the type of property they present to the market in comparison with apartments in horizontal property.
7. RESIDENTIAL HOUSING CONSTRUCTION LOTS.
The resurgence of the purchase of land or lots to build houses totally customized to the taste of each owner will be one of the major market trends that will experience a re-activation of the commercialization of land in both urban and rural areas. Land and decoration trends, with original creativity in many homeowners when building their homes, will then become more valuable.
8. SOLAR PANELS AND ECO-FRIENDLY BUILDINGS.
The necessity to ensure long-term savings while making construction and housing environmentally friendly will lead to an immediate implementation of ecological solutions such as solar panels to save energy, water collection and treatment plants, composting toilets, energy-saving LED lighting and other resources will be the elements to be considered in the new trends of environmentally friendly construction.
9. FITNESS OR HOBBYS ROOMS.
Workout or hobby areas: The imperative need to have a space at home, independent from all other areas where we can exercise daily, do yoga, meditate or have some other healthy hobby in an environment other than the study or home office which will remain exclusively as a work area is becoming evident. Any property that has this area, either within its walls, outside in a courtyard, or in an adjacent lot, will have an appreciative value that will be very well received by the real estate buyers' market.
10. FAMILY AND SOCIAL LIVING AREAS.
¿What is a home if not the place where we share the best moments as a family? This situation has well demonstrated that having a space where family members can gather and share their ideas, meals, emotions and aspirations acts as the very heart of their home. Ensuring the full readiness of such a space will be one of the greatest commercial advantages that any new or pre-owned construction will be able to offer to the market once the effects of this economic downturn have passed.
These are just some of the aspects that I consider relevant from my experience in the configuration of real estate to offer to the market once the effects of the #Pandemic have inevitably changed the reality of the market.
Do you think there are other features to take into account? Help us enrich the discussion by pointing out other features that you may find relevant by leaving your comments below.
If you are about to sell your property, download my free SELLERS GUIDE which will guide you through the basic aspects of the whole process of selling your real estate in Colombia.
ALEJANDRO BETANCOURT Broker Inmobiliario
Web: https://www.alejandrobroker.com Whatsapp: +57 313 338 7060 E-mail: alejandrobroker.co@gmail.com Facebook: https://www.facebook.com/alejandrobroker.co Linkedin: https://www.linkedin.com/in/alejandrobroker Instagram: https://www.instagram.com/alejandro_vegan
Comments