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.
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.
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.
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.
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