What should we expect from the Global real estate market in 2021?

COVID is gradually receding and the world comes to life along with all its contents, including the real estate market, but in new realities. The pandemic has had a huge impact and changed all aspects of our daily life, business, world markets, which creates new demand and generates new trends for the post-quarantine global real estate market as well. So, today, many developers and property owners find themselves in difficult situations and need anti-crisis management. The pandemic and its results contributed to decline world GDP for 5,2 % in 2020. But already now, thanks to the fiscal and monetary measures taken by the governments of different countries, as well as the emergence of effective vaccines, it is already expected the increase of world GDP by 6,9% in 2021, and by the fall we expect the restoration of our daily life, thanks to the rapid spread of the vaccine.

But despite this, some aspects of our life that appeared during the quarantine period continue to operate after it, for example: remote work, digitalization, the development of the Internet space, the popularity of electronic money. 2021 will be the year of economic recovery and also the recovery of the real estate market, including commercial, but with new aspects. Considering the growing and established demand for “online” mode in work, shopping, communication, it is absolutely certain that by 2025 commercial real estate will decrease by 20%. Also, the demand for housing outside the city is growing and takes a firm position, but in the form of private houses in green areas or small cottage villages in the same modern style, far away from the noisy city. And the same situation applies to the tourist hub, since most travelers also want to be away from densely populated cities, but at the same time they do not want to go far from the infrastructure and comfort zone. That is, the pandemic has increased travelers' preferences for socially remote destinations, compared to busy large cities. As you can imagine, this means a decline in demand for hotel real estate, which is not expected to recover in the coming years. This should also include the decline in demand for shopping centers, since people are no longer interested in wasting time shopping offline if there is an excellent and fast solution for online shopping.

I would like to separately note the high level of implementation of innovative technologies in the global real estate market, which by the way will only grow in the future. These technologies include platforms and programs for buying and selling real estate and attracting investment for a developer, the ability to settle with electronic money and cryptocurrency, as well as a variety of “smart” technologies for the property itself. I would like to note that if a person has the opportunity to track the indicators of the sensors of his apartment online using a mobile application, he will buy it immediately and with priority, in comparison with ordinary apartments. Also, many developers offer their clients, in addition to tracking their own apartment, to be able to view the adjacent territory, as you understand, not only private houses, but also multi-storey residential buildings using smart cameras. If we talk about real estate purchase and sale programs, we should note the demand for highly advanced product visualization. During the pandemic, it became necessary for the most perfect visualization, which allows the buyer to evaluate the advantage of a new building virtually without leaving home. Such programs, in addition to visual architecture, design, 3D models, also offer virtual tours of the premises, when the manager seems to be walking around the premises with the client.

Great news for investors is that there are special blockchain platforms available, with the help of which the client can invest his money in square meters of both the completed building and the one under construction. Thus, it helps to receive good dividends at the exit for investors, and for developers it has favorable conditions for attracting such investors for the implementation of their construction projects. Summarizing, I would like to note that, in addition to the shortcomings, the pandemic has given the global real estate market huge advantages that were not there before. The modern world is changing, developing, improving, technologizing, and the real estate market, as one of the main instruments of the world economy, does not lag behind and develops together. Of course, 2021 will be a turning point, but I am absolutely sure that this is a good start to something completely new and wonderful.

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