The covid-19 has shifted the strategies and operations of the real estate sector, as many real estate practitioners seem to be adapting fast to this change.Many real estate companies have actively developed digital strategies, which helps with tenant attraction, commercial lease, asset valuation amongst others.
Sellers have adapted to the new restrictions, taking advantage of virtual tours, which entails online inspection of properties.Purchases are made online,auctions are not left out,as auctions are also held online and prospective buyers can register and bid online.
Contrary to expectation, the real estate industry, has witnessed an unprecedented increase in property sales in this covid-era.The reason for this may not be entirely known, according to some real estate practitioners,however one obvious reason according to an American real estate practitioner,can be said to be, “because people need houses at all time and at all price point”.
Many countries have recorded this dramatic increase in sales.The real estate business has witnessed a boom in the United States.The median price of an existing home,increased by 8 percent, according to Bloomberg.
The number of customers reaching out to real estate agents, was 5.5 percent higher in March than it was in pre-pandemic,according to Redfin a real estate firm in America. About 50 percent of Americans believe it’s a good time to buy a home.
“Now is the right time to sell a house” said luxury real estate broker, Aaron Kirma, whose team just listed $33.4 million estate in Beverly Hills. 3 multi-million mega homes sale amid the coronavirus.
Covid-19 seems not to affect the Nigeria property value and sales, as price surge 50 percent in April. Data by the Nigeria Property Centre (NPC), shows a two-bedroom was sold in Lagos for N20 million in March, increased by 10 percent and was valued at N22 million in April. Whereas in February, before the covid-19,the same property was valued at N18. 5 million. The same period, an increase of 2.94 percent was recorded for a 3-bedroom house in Abuja.
Covid-19 is apparently boosting sales of properties online.Some reasons for this will be because it affords convenience for buyers, as they can access the properties from the comfort of their home.Also the process has become less cumbersome, saving them the rigour of manually doing the transactions,that come with it.
Another reason why online home sales seem to be experiencing a boom, would be because the pandemic has revealed the connectivity of health and home. “people would not mind paying more to get a good home”,as explained by an American real estate practitioner.
For the buyer, online sales afford flexibility,negotiation with various sellers, a wide range of choice, making it easy to choose the most relatively pocket-friendly, thereby fostering purchases and increasing sales for the seller,amongst others.
