The epidemic hit the real estate industry, specifically in investment growth and property market demand, has been hit hard. The year 2021 is portrayed as one of recovery, particularly in the second quarter of the year, because the vaccination drive continues. It will be an era of low-interest rates – borrowing costs are not predicted to rise till 2023 – and low inflation. In fact, investing is forecast to expand about 8.5 percent this year, returning to pre-covid levels in the later part of 2022, as per Fahim Moledina.
Fahim Ekbal Moledina, with his expertise, discusses the current real estate trends using these parameters.
Housing is aimed toward the labor market
Government assistance for labor force issues is likely to disappear by 2022. There will be ramifications for the property market, prioritizing efficiency and productivity, and tenant satisfaction while providing more flexible spaces. The prospect of widening housing portfolios to suit lower-income rents and governmental protection is on the cards.
Telework and offices
Tenants can still count on lengthy rentals. They shall pay particular attention to sanitation, health, and adaptability. This is a wonderful opportunity for renters to negotiate reduced rents. However, the impact of telework on cost and productivity in comparison to face-to-face meetings will need to be re-evaluated.
The food sector, huge shopping complexes or landmark locations in the heart of major cities, and rehabilitation facilities to offer them a fresh start will be the key opportunities. Rent increases, and real estate values will be reduced, providing new chances for investors.
The market for facilities able to control the logistics system has expanded due to the fast increase of the digital platform as a result of movement restrictions implemented to avoid the spread of the coronavirus. In turn, suppliers have expanded and changed. Inventory levels have risen, and automation has increased, whereas the supply of logistical facilities has decreased.
The most impacted assets are hotels.
The tourism industry will continue to suffer in 2021. When it comes to debts and payments, this will be a burden for major operators. Improving operational efficiency, boosting demand, and cutting supply should all help the tourism industry earn more money. Experts advise focusing on customers, cutting costs, merging, and relocating when faced with urgent issues.