Points Which Affected Real estate Industry in 2021
2021 was the roller-coaster year for the real estate industry. After 2020, people expected that corona has gone, but it came back with many damaging powers. But after July real estate industry has shown a sharp jump across the world, especially in India. Here are the few points which affected real estate in 2021.
1- Covid-19
The deadly coronavirus took control over the world within a few months, not only health
but also the economy came under threat, we saw that India’s economy went so down that
people were threatened for their livelihood. And this same virus caused a decline in the
growth of the real estate market.
2- Market Risk
We have seen in past months that how quickly debt and equity capital liquidity can stop
flowing when risk and returns are difficult to measure. One thing we have seen since the
middle of March is that debt has become more challenging and the market became very
risky to invest.
3- Indebtedness
All real estate is local and the value of demand for commercial real estate can be
influenced by local indebtedness funded by local taxes. It is a Top Ten real estate issue.
Public debt needs to be translated locally to understand the interconnections of air travel,
ports, logistics infrastructure, and public transportation that influence commercial real
estate demand, value, and investment activity.
4- Flow of the People
The flow of people between and within countries has always been a critical driver of real
estate and the economy. The world’s economies and people are facing unprecedented
challenges to mobility. Immigration has ground to a halt. Reduced migration and
behavioral changes will hurt demand for residential, hospitality, and retail real estate,
particularly in communities that have relied on such demand.
5- Space Utilization
COVID-19 will have a lasting impact on the design and use of real estate space, COVID-
19 has stressed the use, location, mechanical infrastructure, and interior configuration of commercial buildings. Density and affordability of housing, job opportunities, social services, and health care, and recreational activities will be even more key in urban
planning, with revised expectations on capacity.
