The real estate is dynamic in strength, value and volatility. Owing to the outbreak of the novel coronavirus pandemic last year, the demand for real estate products have risen rapidly as mortgage rates decreased. More speculators and investors are taking this as a profitable venture despite the challenging times.
In a bid to know what impending trends to watch out for in the real estate sector this year, we decided to hit up Winston Deloney.
Winston Deloney is a young and passionate entrepreneur, a seasoned real estate expert and an investor who was glad to indulge the request for an interview. Here are the excerpts:
What hope is there for office spaces as we gradually exit the pandemic?
I get asked this question a whole lot of times and I tell you for a fact that the pandemic has caused different changes that will be with us for quite a while. In this case, a lot of employers are beginning to value the prospects of their employees working from home.
The home office has now been adopted as the trending work facility for most organizations. What happens now is that the excess office spaces will be converted for other uses.
We observed that more people are moving to the suburbs. How does this affect the real estate market?
Yes! People will move as expected. Well, if the trend of working from home continues, more people will move.
The cost of living in the suburbs is way cheaper than in cities. However, on the plus side, people moving imply an increase in the value of real estate in the suburbs.
Rental prices have been hitting the roofs of late; could this trend continue with time?
That is expected. It is just reasonable that prices on the other side will be on the rise as well. The move implies that there will be more requests for recreational, commercial and residential real estate spaces. Investors who take advantage of this opportunity early enough will be smiling to the bank soonest.
Sanitation practices have been on top gear recently. How will real estate be affected by this trend?
The pandemic has made us more conscious of keeping everywhere sanitized. There will therefore be an increase in demand for homes, offices or general real estate with adequate sanitary amenities. It is a win-win situation for both industries.
Would you say houses are becoming more affordable for purchase?
The affordability of houses deals with factors like income, inflation and interest rates. The lower the interest rates, the more the chances for homebuyers to invest in the market. The current market is favorable in that regard. Considering recent income trends and inflation, buying power increased to about 20% at the end of 2020.