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The Real estate sector in Canada has been currently undergoing some serious impacts. These are because of the latest developments from the COVID-19 scenario. These impacts are related to the pricing strategies in the real estate and changes in Govt.’s policies. In the midst of the spread of the COVID-19 pandemic, there are some positives that have been figured out.
There are millions of Canadians in the non-essential workforce that are working from home. For visiting the business & public places, there have been restrictions & bans imposed by the Govt. of Canada.
THE IMPACTS ON REAL ESTATE OF WORK FROM HOME:
Working from home has outlaid significant impacts on the real estate sector Canada in just a matter of few months. This is largely because of the reason that most people in Canada are restricted to their homes & the property prices have raised especially in the commercial sector. The real estate industry in particular is a prime example of the current circumstances, and the need is to take drastic measures to adapt to scenarios of ‘Business as Usual’. A term that determines that how the businesses must take place under normal circumstances. There are also some key changes in the way agents operate in conditions of work from home. This is also because it is an uncertainty that how the markets will perform in future.
According to the experts, as they have seen the most uncertain times. It’s hard to make predictions and evaluations like before. The question is “What can buyers and sellers expect from the markets during these most unpredictable times?”
THE LONG TERM EFFECTS:
How long will it take for the market to bounce back? A question that needs to be asked by investors in the Real estate business. It can take a year, two year or three years, that’s not the question, however, what’s concerning is how long these effects will damage Canadian real estate sector. In fact, the reality says that the fundamentals of the market i.e. particularly in the GTA and other major urban centers don’t change.
What’s more affected is the attitude of the buyers in the Real Estate business which cannot be affirmative unless things get better. The pessimist attitude means buyers in the Real estate markets are looking for things to get ‘Back to normal.’
FEARS OF A GLOBAL RECESSION:
Having the fears of a global recession is why most people’s attitudes have changed towards investments in the Real estate sector. A global recession just like something that happened in 2008-09 in Canada and impacted the Real estate sector is the fear of most people. This financial recession has not only impacted the attitudes, however, most interestingly it’s hard to predict a property performance. Therefore, the levels of risk associated are more than what they could have been under normal circumstances.
LIMITATIONS FOR CONSUMERS IN THE REAL ESTATE:
There are limitations for consumers in the real estate sector, and these limitations are in form of pricing strategies. The change in consumer behaviors means changing trends of the real estate market is affecting the consumer’s psychology.
Other limitations include the purchase of cottages for holidays, limitations imposed on rental property due to fluctuations in the purchase price. The consumer’s limitations also includes property predictions, as they are hard to make in these current times. They are unable to determine and evaluate the risks involved in selling and buying especially.
POSITIVE CHANGES IN GOVT’s POLICIES- CECRA:
The changes in Govt.’s policies are mostly linked up with COVID-19, the current pandemic for business owners. It has proved to be something positive after seeing so many lows because of the current pandemic. CECRA or Canadian Emergency Commercial Rent Assistance, provides relief for small businesses that are experiencing financial hardships in paying for their business property rent. A huge step from the Govt. to stabilise the situation in times of the pandemic, COVID-19. The program offered by the Govt. of Canada is also valid for those who have entered or will enter into a rent reduction agreement. Rent reduction, yet another positives amongst the Govt. policies is helping people reduce their rent payments through 75% payment re-reimbursements from the Canadian Govt. scheme known as CECRA.