While the primary impacts of COVID-19 are currently being felt by individuals and communities around the world, the duration and severity of its impact are still largely unknown. All sectors of the Economy will certainly feel the direct impact of the pandemic related to escalating number of event cancellations, office closures, travel restrictions and quarantined areas but what is also important to analyse is the indirect effects over the different sectors of the Economy. This crisis will certainly change our way of living and working, potentially leading to new operational models. But how all these affect the Real Estate sector?
The coronavirus’s ultimate impact on real estate markets will largely depend on the length of the outbreak and whether there is a quick recovery (with a return to overall social and economic stability) or a more extended one. Real estate market has a history of performing relatively well after economic shocks compared to the more volatile stock market and despite what many people believe, there is no direct connection between stock market performance and real estate values.
To better understand the current and future impact on real estate markets, LGA team has assembled their initial guidance and analysis here. As the situation is rapidly evolving, some of the perspectives in this article may fall rapidly out of date.
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