Understanding COVID 19’s Impact On The Real Estate Sector

  • April 30, 2020
  • admin@ohi

The COVID 19 or Coronavirus crisis has affected the entire world quite drastically. It has been classified as a ‘pandemic’ by the World Health Organization (WHO). Currently, the pandemic has made a significant impact on both human civilization and the world economy.

For starters, the stock market has taken a huge dip in various sectors across the world. One of the affected sectors is the real estate sector. Impacts of COVID-19 on Commercial Real Estate and Residential Real Estate have been profound, reshaping investment strategies, altering tenant demands, and redefining the concept of space utilization in both sectors. Currently, the biggest impact of coronavirus has been seen in hotels, bars, restaurants, and other housing areas.

Influence of COVID 19 on the Real Estate Sector

It is no surprising news that the whole world has undergone both economic and financial breakdown due to COVID 19. Currently, everyone is forced to work from home and stay quarantined while the world is battling to find a cure.

Many industries are digitally equipped and thus are able to manage their work flow. In the US, the real estate sector is one of the many domains that has been affected by the crisis.

Here are some sub sectors in real estate which have been affected by the COVID 19.

  • In comparison to the stock market, the real estate sector has been affected quite slowly. However, it has made a great impact on its quality. Due to the coronavirus pandemic, investors are now flocking to the bond market which is resulting in lower debt/financing rates
  • Investors are certainly going to increase capital and opt for a more conventional and solid investment in the coming times
  • Due to limited pay and jobs, investors are less likely to go for investment. Thus, there can be an ample reduction in further development and demand for the same. This holds for the residential divisions as well. Moreover, the demand for the present ones may get diminished
  • With the halt in construction business, many projects that were in the process had to get delayed as well. The lockdown and self-quarantine measures have halted the jobs of construction workers and have made it difficult to procure supplies.

As far as construction supplies go, the US would procure about 30% of supplies from China. This was subsequently halted due to lockdown measures taken by both countries.

Accordingly, the coronavirus pandemic has affected the housing real estate sector as well. The process of buying and selling residential homes and living spaces has become stagnant as well. Overall, there has been a huge drop in sales for all sectors and businesses.


Be it real estate for the residential or commercial sector, the COVID 19 pandemic has surely affected the domain adversely. The recent stock market dip is going to further affect the real estate sector in the future. In the long run, coronavirus is expected to resolve in the first half of 2020. Therefore, the recovery process of the economy should kick start as soon as it is over.

Moreover, developers are certainly expecting some relaxation for the deadline so that they could complete their work without any inconvenience. There is no doubt that coronavirus has severely affected different realms of the world.

Managing Your Accounting Operations During the Pandemic

To ensure you accounting and back office operations are running smoothly during these difficult times, having an emergency scenario is essential. Use outsourcing as a tool to diversify your accounting and back-office operations risks. Outsourcing services are available on an as needed basis, and this is the perfect time to collaborate with an expert outsourcing vendor and have a second option to manage your accounting and back-office needs.


OHI is a fifteen-year-old real estate services company working with 50+ commercial and residential real estate developers, funds and property management companies across USA. Our deep expertise in real estate accounting, financial analysis, lease administration and asset management has helped clients cut associated costs by 40-50%. We currently provide these services to a portfolio of 50000 units across clients.

We invite you to experience finance and accounting outsourcing through us.

Know More About our Accounting Services for Real Estate Firms: Call us at 1-646-367-8976Email at sales@outsourcinghubindia.comCONTACT US

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