Reassessing Real Estate Investments During the Coronavirus Pandemic

by Mark Tencaten Mark Tencaten - Co-Founder and owner at NGS Group

Investment in property or real estate can be a wise move to diversify your overall wealth as it has a great potential for a stable money flow and value appreciation; and not to forget the generous tax benefits that comes along. However, it is important for the investors to take into consideration the risks associated with investment in real estate, especially in the COVID-19 times.

The risks and rewards of investment in real estate have got greater relevance during the current economic crisis caused by the COVID-19 pandemic. Therefore, real estate investors need to be aware of how the pandemic may affect different aspects of people’s life including how they shop, and where they choose to live.

The pandemic, as experts suggest, has affected different property types in multiple ways. For instance, retail, hotels, restaurants, gyms and other recreational sectors are the ones most badly hit by the pandemic. On the contrary, industrial assets have managed to remain relatively stable.

Here is a comparatively analysis of what is the first and the last segment of real estate to invest in these testing times:

Apartments Are Still Trustworthy

COVID-19 or not, apartments have remained the most outperforming sector compared to other property types. It may be attributed to basic human need for a roof to live under. Probably that’s the reason; apartment sector didn’t bother its investors even in the COVID-19 times. However, lower rent collections and higher vacancy rates remained a concern but still it didn’t trouble those who had investment in property or real estate.

If you are looking for profitable advice on investment in property or real estate, you can contact Mark Tencaten to know more about playing safe during the pandemic.

Industrial Sector Remained Bankable

Industrial real estate is the best performing sector among all other property types, especially during the COVID-19 pandemic. It could be due to the increase in online shopping and the subsequent need for warehouse and logistics space to provide support to e-commerce. While rent payers found it difficult to pay their dues, rent collections for industrial properties ensure landlords didn’t feel the heat during the period of economic shutdown.

Even you can act wise when crisis like COVId-19 bothered everybody. Contact Mark Tencaten for the advice that really matters.

Office Spaces Didn’t Disappoint Much Either

In a report on real estate during the pandemic titled “The Impact of COVID-19 on Real Estate Markets”, the COVID-19 crisis was found to force many companies to have their employees work from home. Now that several months have months have passed since the crisis has bothered businesses, companies have had a chance to evaluate if employees working from home were able to match their productivity levels, and they were largely disappointed. In several high-profile cases, it was found that productivity was below par.

It is difficult to predict how long and severe the economic impact of COVID-19 will be on different types of real estate assets. However, it is important to note that professional real estate experts like Mark Tencaten can help you develop defensive market strategies so that you can preserve cash flow while positioning real estate assets and portfolios for future market opportunities.