This past year, which was marked by lockdowns and social distancing, taught us that the world of investments and the real estate sector in particular is much more stable than one might expect. COVID-19 proved that even when a virus hits the entire world and sows destruction, the real estate field is not easily shaken. This is because the real estate field is endowed with well-insured foundations, and therefore, anyone who was quick to speculate that COVID-19 would lead to a significant drop in prices, very quickly discovered that it was a mistake. Though in some cases there was a drop in prices, overall, real estate work continued to progress.
Real Estate Investing 2021 - Where Do Things Stand?
In 2021, a slight decrease in the volume of real estate transactions was observed. However, this was true only for a period of a few months and without significantly hurting prices. How can this be explained? Real estate is a field in which decrease of value is not a matter of mood, and it turns out that it remains fairly stable even after an earthquake. This is due to a simple reason: people will always need a house to live in. They may opt for 4 walls that are in a less prestigious location and that contain a smaller area, but apartments will always be needed, and at the same time, there will always be someone who can afford luxury real estate or investment land.
The Achilles' Heel of the Real Estate World
The area that has been hit perhaps most significantly in the wake of COVID-19 concerns apartments destined for short-term rental, and even apartments that were supposed to be rented as holiday units. Additionally, the business field points to another interesting trend. More and more businesses have begun exploring the option of co-working complexes. Thus, this year, fewer businesses have shown interest in renting large offices, preferring co-working complexes located in central areas, alongside train and public transport stations. Why? Mainly because these offer more comfortable and flexible rental terms.
Real Estate - a Field with Favoritism
While many sectors have collapsed, the real estate sector has continued to grow, largely thanks to exceptions that allowed the industry to continue working as usual while most of the economy was paralyzed. Although delays were created, overall, the industry continued to function. However, the fact that construction continued did not change the current situation in the least: currently there is more demand for apartments than actual vacant apartments, and professional real estate companies know how to take advantage of this situation.
The optimistic forecast behind real estate investments
If we gather some key facts about the state of real estate after the COVID-19 year, we find a rather optimistic forecast: apartment prices are rising again, demand is certainly there, a variety of new and promising projects are on the horizon and the purchase tax for a second apartment has dropped from 8% to 5%. All of these point to a period of economic opportunity waiting for us to take advantage of it. However, it should be noted that investing during a crisis can be risky, especially if you lack experience and knowledge. How can you bypass the difficulty? We recommend joining a professional, experienced and, most importantly, credible, real estate company – a real estate company that sees the profit of the investor as a personal interest.
In the shadow of COVID-19 - what are the most tempting real estate investments?
Now that the picture has cleared up, all that remains is to understand which real estate investments you should be looking for, We have prepared for you a list that may lead to a handsome return. One of the more interesting directions is to invest in quality residential buildings that offer small apartments for rent. This is done in the belief that in a short time, the demand for centrally located and invested-in apartments will increase. Another interesting direction concerns investing in plots for sale, especially plots whose owners want to rush to liquefy assets. In addition, a variety of projects designed for improvement (under urban renewal) are promising, especially if you look at the data carefully and can be patient. The bottom line? Today, more than ever, there is a huge opportunity for investors large and small. “All” you need is to find a reliable and promising real estate company, and walk forward hand in hand with it, towards the desired return.