New York real estate, once the envy of all homebuyers, corporate houses, investors, and developers, was battling to keep its unstable ground post-pandemic.
In the midst of the pandemic, when there was an atmosphere of uncertainty and turmoil, natives and the mobile workforce comprising both white and blue-collar withdrew to their hometowns. People lost their loved ones, careers, and faith in the future.
Corona changed the face of the world and the way we look and perceive reality. It turned to be an eye-opener; priorities changed, aspirations shifted.
The pandemic shook the whole corporate world, and the focus shifted from making profits to curtailing costs by laying off the workforce and cutting down on real estate assets.
Let us discuss its actual impact on the present and future of the real estate market.
High tide after the low one
Work from home became a new norm, and corporates and renters renegotiated leases and contracts. Suburbs became the new hot spot of the real estate deals, and we all wrote off Newyork.
However, the tide has turned; sales have been steadily increasing, and real estate professionals say they have never seen demand for real estate like this in the last 20 years.
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The successful vaccination drive has redeemed buyers’ confidence, and things are getting back to a new normal.
The easing of restrictions on the social events and people getting used to the everyday social life they were accustomed to has brought a new ray of hope for the economy in general.
Fortunately, real estate is also not untouched by this new lease of positivity.
No more discounted rental deals
Gone are the days when property owners were offering heavy discounts on the rent to meet their end.
Nevertheless, many from the service industry are still working from the comfort of their home, but there is still a steady demand from those whose work profiles demand their presence at the workplace, be it hospitality, construction, logistics, manufacturing, medical, etc.
With the unemployment rate down from 5.1% to 3.23 %, and even if 15% of the workforce are not moving back from their hometown, there is a considerable chunk of more than 40% whose physical presence is needed, and they are keeping up the demand of the rental homes.
The worst is over
The residents of Newyork city have seen it all, losing their jobs, lockdowns, untimely demise of friends and family members, financial insecurity, emotional disturbance. Still, they didn’t lose their spirit, and now slowly and steadily, the city is opening up, and so are the business opportunities in real estate.
At present post-pandemic, there is a new normal with all the safety guidelines and procedures acting as a boost for the economy.
The workforce is retreating as many companies have given the flexible option of working from offices.
In addition, with the opening of restaurants, social event hubs, shopping malls, and other retail outlets, the job market is again beaming with candidates. This has resulted in reviving the demand for rental space for residence and commercial use.
The government’s efforts to restore consumer and corporate confidence by reducing lending, mortgage rates and pumping capital into the market through rich financial packages with the goal of stabilizing the economy are paying off handsomely.
What does the future hold?
There has been a paradigm shift in the real estate market. Apart from the metros and center, the suburbs are also active with real estate opportunities, expanding the market and creating new avenues.
Real estate developers and brokers have a whole new set of opportunities that are available to be encashed with the ongoing demand for rental and buying space.