Many trends in real estate have come to a crashing halt due to the global pandemic. While others have been accelerated. Here are 8 real estate trends emerging from the pandemic.
1. Reduced office size
Realtors are all too familiar with working on the road. 94% of the industry expects that their business will adopt remote work policies indefinitely. While the impact on this change may see a reduction in head office footprints, the majority expect that businesses will look to expand their satellite office capacity. With more space in regional centres, businesses will be able to attract and retain talent who want a blended remote work arrangement combined with lifestyle friendly locations.
2. Exodus
Evidence suggests that productivity can be boosted through remote work for many professions and the pandemic has destigmatized working from home. As a result, many workers are looking outside their local area for properties to achieve their lifestyle goals. Regions and towns that traditionally suited retirees looking for a seachange and now experiencing an influx of city workers who have transitioned to full time remote employment. As a result, Realtors will need to adapt their marketing strategies and review their target market, in particular those who are located in desirable but distant locations.
3. Transformation
Many urban centres are facing decline as a result of the absence of workers, with reduced spending in city centres during the work week. Although this trend will not reverse in the short term, many local governments will work towards transforming their public spaces to create a desirable work/play environment. Improvements will attract residents looking for the connection and variety of city living, but with better amenities for lifestyle balance.
4. Retail vacancies
While online shopping was normalized pre-pandemic, many retailers found themselves rapidly adapting to unseen levels of internet orders. As delivery companies adapted to the demand, these new consumer habits will continue to trend upwards post pandemic. As a result, retailers will reduce their physical presence and expand into hub-and-spoke warehouse operations. While this trend will reduce rents for traditional shopfronts, we will see different service businesses move into these retail spaces in the short term.
5. Government budgets
Many levels of government are facing a decline in revenue across the board as a result of the pandemic. This trend will not reverse in the short term. With reduced income, cities will be reviewing their budgets for services and infrastructure which can reduce property desirability in your area. As many as 65% of cities are planning to delay or cancel infrastructure projects as a result of the pandemic.
6. Changing expectations
Many commercial buildings have responded quickly to the health needs of their occupants. With airborne disease at the top of everyone’s minds, increasing airflow and natural light with reduced density will become points of differentiation for businesses. Residential buyers will look favourably at properties with improved HVAC systems, open entertaining areas, connected devices like doorbells and secure package delivery areas.
7. Disruptive housing
To offset the exodus of workers from the cities, commercial building managers will look to maximise occupancy through rezoning office towers. In a move that can address housing affordability issues, providing residential spaces with entertainment, shopping and services alongside offices will boost occupancy in city centres.
8. Connected solutions
Keeping physical documents or having on-site storage for Reators will die out, replaced with online cloud-based solutions. The real estate trend emerging from the pandemic is a “work anywhere” arrangement with teams collaborating with agents in real time through desktop and mobile devices.