The world is in an unchartered territory with the COVID-19 pandemic—and this has affected every sector—the real estate inclusive. Are we going to experience drop in real estate investment? People will of course continue to invest in real estate, but what numbers are will looking at?
Virtually every area of the economy was mentioned in President Buhari’s last two national broadcasts to Nigerians; but nothing much was said about real estate and rents. While government’s efforts at cushioning the effect of the lockdown is well-acknowledged, it is important to study the impact of the coronavirus pandemic on home prices/rents.
While we will continue to experience investment in the housing sector, it will be unrealistic to expect the same kind of investment we saw pre-pandemic. Countries as well as individuals may struggle to find their feet post-pandemic, which will adversely affect new investments.
Priorities will have to be adjusted, while goals will either be pushed forward due to realities on ground or suspended altogether. In the United States for example, the government is lending a helping hand to people in terms of repaying their mortgage loans.
The Consumer Financial Protection Bureau (CFPB), Federal Housing Finance Agency (FHFA), and US Department of Housing and Urban Development (HUD) are working together to help homeowners and renters during the coronavirus pandemic.
With hundreds of thousands of people already losing their jobs, the instability of the oil and stock markets, the possibility of a boom in the rea estate sector is a mirage. For the diehard investor or realtor who sleeps and eats real estate, there is bound to be some investment even though little.