Real estate scenario in the state of a pandemic outbreak


Can you actually believe some of the top cities which flourished in real estate have frozen their transactions due to Covid-19? Yes, it is happening right now around us and its starting to crumble the gigantic real estate market into chunks. People keep on staring at their smart systems to look at the price drop in real estate. Some people expect a great downturn in real estate while some others do not find major effects on their commercial real estate because of this Covid-19.

Learn from history

As we all know Covid-19 is widespread and the cure has not been found which can make the post-real estate scenario a big question mark in terms of development. There are so many questions ranging from what the time duration for recovery will be. What could be the big picture of a total loss? How investors will invest in the upcoming days? These may be some of the questions that are currently occupying all our minds. We, humans, have always come across so many pandemics and other natural catastrophes, but nothing did not shake our economy for a long period of time. Even during this time of the pandemic, we are about to take a few tips from how history has dealt with previous real estate market recession.

Three major points

  • The financial breakdown was widespread
  • The possibilities of bailouts were less
  • It nearly took 5 to 7 years of time to recover

These are some of the major dropdowns that happened in the olden days. There was one specific concept which many of the firms and agents followed that was “Extend and Pretend” measure. They followed it until the market was completely restored back to normal. People kept the pace of pre-crash value and proceeded with the extend and pretend measure.

The current recession

Every small to the medium dropdown in the real estate market took merely 3 years to recover back to normal phase. The recession which we are facing right now is more relevant to the early 1990s recession. The paradigm is just as the 90s one along with inflation concerns and other criteria. The collapse of the 1990s led to the passage of FIRREA that brought better bail out options for real estate markets. Such kind of acts can be framed after this pandemic which can help investors to many companies to overcome this tough time. Bringing an act can help in establishing clear cut pricing and better loan options. Once loan clearing options are accelerated then eventual recovery will kickstart.

Apart from this people can concentrate on the 2007 recession which gave a big boom to the housing market. There are so many paradigms to look for us from history. So, let us not lose our faith and start spreading rumors about the fall of the real estate market. Somehow, when everything comes back to normal, real estate will also return to its own form. Until then as the experts say, “We need to build together for better tomorrow!”. Let us start rebuilding to develop a great real estate industry as it was before!

Tags: commercial real estate, property search,


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