Effect of covid on real estate 1

Effect of COVID-19 pandemic on real estate
Student Name
Supervisor Name
Institution and Department
Date
Research Topic
Effect of COVID-19 pandemic on real estate.
Research Question
What is an effect of COVID-19 pandemic on real estate?
Exploratory Table 600
Title of Author(s)
paper
’s name
Problem
statement
Publi
catio
n
year
The
Marona,
The main 2020
COVID- B.,
& problem of
19
Tomal, M the
pandemi
research
c impact
was
to
upon
evaluate an
housing
influence
brokers”
of
workflo
pandemic
w and
on
real
their
estate
clients’
brokers as
attitude:
well
as
Real
behavior of
estate
consumers.
market
in
Krakow
Type of Methodology
paper
Findings
Entrepr
eneurial
Business
and
Econom
ics
Review
Coronavirus
has caused
influence on
real estate
brokers as
online
amenities
are rendered
to
higher
extent.
Customers
have altered
their
policies
from shortterm rental
aspects into
long-term.
For evaluating
an influence of
coronavirus
pandemic on
the features of
real
estate
market,
the
questionnaire
was designed.
Open-ended
questions were
added
and
these questions
were
asked
from real estate
brokers
concerned in
Malopolska
Real
Estate
Brokers
Association.
Future
Recomme
ndations
Take away
reader
Supply
Chain
2020
Research Problem
The main problem of the research is to examine effects of COVID-19 pandemic on real
estate. COVID-19 has been a global pandemic in 2020, as administrations caused lockdown and
advised people to stay homes. There were vacant shopping malls, offices and businesses and it was
a
all because of social distancing and quarantines. Restrictions was also caused in regulating
diseases, shutdown in international economic crisis deprived of broad range of fiscal support
evaluation. COVID-19 pandemic influenced the real estate during spring season. It is a challenge
that might has a never-ending effects on the way people play, work and live. Real estate leaders
can serve effectively and also assures the viability. Pandemic affected the real estate, as there are
numerous health issues that led to purchasers for listing the features as well as permission for the
strangers to enter houses during pandemic. Deprived of travelling, the consumers crossways the
world had pursued the strings to spend the important aspects such as home supplies, medicine and
food. Physical distancing has altered the way by which persons interact and inhabit with physical
location and also effects the demand of kinds of space that might enter into contemporary memory.
It also created crisis for real estate industry. During last numerous years, real estate investments
has caused fast cash flow and returns for more debts with slighter risks. COVID-19 pandemic
caused losses in value chain, as service specialists struggled to reduce the risks for the consumers
and workers. There are various developers to attain permissions and also face stoppages and delays
in construction as well as reduction in rates of return. Alike various industries, commercial and
residential real estate faced various issues. The sales of residential and commercial properties
reduce, as persons did not accept their apartments in metropolitan zones. Moreover, the households
caused issues in payment in abiding the mortgages between each other. Therefore, industry and
economic experts have top interest in best understanding of effect pandemic on real estate.
Mortgage and real estate markets can be explained as complicated web of interlinked groups like
investors, banks, developers and households as well as connection with financial markets and
macro-economy. So, there were numerous businessmen who faced these issues. Owners of real
estate crossways assets have long-lasting effect of COVID-19 pandemic with needed
modifications and shifts. For instance, commercial office space shows trend to diversification as
well as plans that might reverse supply.
Research Rationale
COVID-19 pandemic has been a common and global issue all over the world. It has
affected every area including real estate. Pandemic had a negative effect on the states and growth
of global economy. Real estate suffered from numerous effects during pandemic because of
prolonged issue, as it led to numerous investor to remain hesitant for investing in market.
Moreover, it led to sharp reduction in demand in housing market. Moreover, market supply also
reduced due to no desires of developers. Therefore, it resulted in sudden decrease in market. During
past years, 2008 monetary crisis got connected to real estate mortgage lending strategy in USA
which was the basic reason of fiscal recession all over the world and states. It shows that real estate
market has a great influence on economy. There are numerous states who think that real estate
market can bring improvement in positive effects on economy. Moreover, housing market and real
estate are crucial contributors to economy. Deprived of effect of pandemic, real estate grew and
prices of real estate also endured to enhance. During COVID-19n pandemic, it was pointed by
enhance in real estate costs. Investors got interested in data regarding the building such as housing
area. Administration endures to have proper strategies to support real estate developers so that the
companies feel protective in their business activities and production. During pandemic, real estate
costs endured to enhance because of shortage of real estate supply. It then controlled to inequality
in relationship between demand and supply. Demand of people for accommodation is higher and
pandemic caused disruption in logistic chain as well as enhance in cost of raw materials. In
COVID-19 pandemic, the governments endured to fund the stabilization of real estate market with
market-concerned shocks.
Theories
The theories that are related to the dilemma include The Malone & Lepper’s theory and
Hanin’s Individual Zone of Optimal Functioning. The Malone & Lepper’s theory includes various
factors such as; fantasy, control, curiosity, and challenge that make the environment as gaming
action for the motivating aspect. The theory focuses on intrinsic engagement aspects that explain
the way learners get engaged with gamification of higher appointment. The theory also explains
the role of appreciation and motivation of learners to desire reciprocal of optimistic enforcement
of motivation. It also divided intrinsic motivation from interpersonal motivational aspects.
Moreover, Hanin’s Individual Zone of Optimal Functioning focuses on the band with depression
zone. All stress and disruption in real estate caused because of COVID-19 pandemic. The
depression with every distinct performer is more probable to attain optimal presentation. Distinct
zones of optimum functioning focus on model that explains the association between success in
tasks and emotional expertise on the basis of distinct as compared to group-based aspects.
References
Marona, B., & Tomal, M. (2020). The COVID-19 pandemic impact upon housing brokers’
workflow and their clients’ attitude: Real estate market in Krakow. Entrepreneurial
Business and Economics Review, 8(4), 221-232.
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