How Covid-19 Has Affected The Real Estate Industry

There’s no sector in the world that the COVID-19 pandemic did not affect, and the real estate industry is no stranger to the changing times either. In 2021, the property management industry had to face the challenges of labor and material shortages, increased regulations, industry consolidation, and the housing affordability crisis. 

There had been an increase in demand and expectations from the residents as well as other clients, and the threat of competition from institutional investors and management firms was looming above the heads of the single-family rental sector as well. 

In 2022, according to property consultancy firm Santos Knight Frank, a significant development is how Philippine's commercial real estate sector is poised for recovery. Investors property management confidence in Philipines has continued to be strong in the past two years and the rebound for the industry has been expected and much anticipated. 

There have been high vaccination rates recorded as well as increased remittances from overseas Filipino workers, which all contribute to their real estate industry to stand firm on solid ground this year.

In the world of real estate, 2022 is expected to be a great time to make good investments and choose your next property. 

Demand Is High, Supply Remains Low

Even though there’s been a large drop in home sales because of the pandemic, activity has seen to improve and potential buyers are increasing their housing search and purchase activity.

Home showings per list rose over time and were almost above pre-pandemic levels, helped by the increase in online and socially-distanced viewings. Unfortunately, the housing supply didn’t recover at the same pace. 

In August 2020, there was less than two-thirds the number of homes on the market compared to 2019. The economic uncertainty that’s spread among the world like a plague is a big factor along with health-related concerns that are keeping sellers away from the market and keeping homeowners reluctant to move from where they are. 

Growth In Rural And Suburban Markets

A large impact of work-from-home policies because of the pandemic was how more people forced people to reimagine their lifestyles outside of city centers and fashionable high-rise communities. 

What rural and suburban markets provide is wide open spaces, more spacious homes, and more opportunities for outdoor living. On top of that, they are far more affordable and so it was no surprise to see the market value increase with property owners in both secondary and tertiary markets. 

Rental Properties, Especially Vacation Homes, Are Thriving 

Even though the vacation industry took a massive hit at the beginning of the pandemic, and there was not much recovery over time either, vacation homes started to do pretty well in comparison. 

A change in perspective can do so much; everybody wants their own space and if they can’t find that where they are then they are bound to find a different one. So people who have enough resources to rent space will take advantage of it. 

For example, hotels suffered a ton because of people globally canceling their vacations and events. But by marketing their rooms as spaces where workers can work in isolation instead of around their loud families and pets at home started gaining back the lost business.

It’s the same reason why vacation homes are being rented like hotcakes and causing the vacation rental industry to thrive.

Technology’s Aid To The Real Estate Industry

The reliance on the internet was bound to increase, but nowadays digital solutions have completely changed how homes are bought, sold, rented, and managed. COVID-19 has managed to streamline and transform the industry even further.   

Increased reliance on technology has made life easier for everyone and now people are increasingly buying homes without even needing to meet the real estate agent in person or even seeing the house. As crazy as it sounds, this is a reality now. 

The market for investors property management is utilizing technology like never before and collecting rent, setting up in-person appointments and even virtual guided tours are now something feasible and made easier.