Real Estate Investment during a Pandemic [PART 1]

commercial real estate investing

The coronavirus has brought an indeterminate turn in the real estate investments scene. While the long-term future, much like always, remains to be positive, it is the short and mid-term span that is giving anxiety to the investors.

How far the price will go down? How long will the recovery take? Will the new normal of remote working bring about a fundamental shift – and will that hurt office space? What kind of properties would bounce back the quickest? How are commercial properties like malls and hotels expected to respond in the coming months? There are countless questions for the real estate investors to ponder on and figure out the answers of before making any decision regarding their portfolio. In addition, one must also consider how this recession will affect one’s wealth. Because even when the price of the properties declines, one might not necessarily be able to afford them.

In fact, the price of properties has already declined in a few places across the USA. And this could perhaps be a great opportunity to invest properties at a price that would have been unthinkable pre-COVID-19. But has this decrease in price brought an increased number of takers? That picture isn’t yet clear. Presumptively, conservative investors are unlikely to enter the scene. However, even those who are financially well-positioned, they might remain cautious of any further investment due to big economic uncertainties ahead.

All said though, it should not be believed that people aren’t investing. Those who are liquid and have good capital reserves, they are actively in the hunt to add more properties in their portfolio. Real estate in places like Nashville, Seattle, San Francisco, and Phoenix that were “hot” before this pandemic hit are still attracting investors with expectations that these markets will recover the fastest.

So, opportunities do exist even in these challenging times. There are many best places to invest in property right now. But not everyone is positioned to tap on these opportunities. Those who are rich, it’s a great time to shop and bolster their real estate portfolio. Those who don’t have the capital reserves and financial competence, alternate options must be explored.

Read the next part of this 3-post series: Real Estate Investment during a Pandemic [PART 2]

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