The COVID-19 pandemic has created unheard-of economic destruction in almost every industry, including real estate. The pandemic’s impacts on the property market have also been seen in Islamabad, the capital of Pakistan. We will examine how the pandemic has changed real – estate prices, trades, and buyer interests in this blog article on Islamabad’s real estate market.
Drop in Real Estate Prices:
The COVID-19 outbreak has had a massive impact on Islamabad’s real estate market’s dynamics of supply and demand. The economic crisis, which has led to job losses and decreased income, has affected many people’s chances of earning a living.. The decrease in demand for residences has led to a decrease in property prices.
Real estate specialists estimate that as compared to the first quarter of 2020, the average price of a home in Islamabad decreased by 3.65% in the second quarter. The average cost of a 1 kanal (500 square yards) plot in Islamabad decreased by 4.05% during the same period. Yet, despite the pandemic, property values increased in some areas in Islamabad, including Bahria Town and DHA Islamabad.
Decline in Real Estate Transactions:
In Islamabad, there have been fewer real estate transactions as a result of the COVID-19 outbreak. Many have found it difficult to see houses because of the government’s lockdown measures and social barrier customs, and many property sellers have also removed their listings because of the market’s uncertainties.
Real estate experts report that compared to the prior quarter, real estate transactions in Islamabad decreased by 47.6% in the second quarter of 2020. Also the quantity of property queries in Islamabad decreased by 62% during the same time period.
Demand for properties with home offices is increasing:
Because of the epidemic, many people have been compelled to work from home, increasing the demand for homes with home offices in Islamabad. Buyers are searching for residences with dedicated workspaces, and sellers are responding by upgrading their homes to add home offices.
During the epidemic, 30% of participants in Islamabad were seeking apartments with home offices, according to real estate specialists. According to an analysis, 68% of respondents believe that home offices would become a typical feature in residences in the future.
Increase in Digital Real Estate Transactions:
The COVID-19 epidemic has hastened Islamabad’s shift towards digital real estate transactions. Real estate brokers and sellers have adapted to the new normal by conducting transactions via virtual tours, video conferencing, and online payment methods.
Real estate experts claimed that as compared to the first quarter of 2020, the number of virtual tours on their platform increased by 55.5%. At the same time period, the number of online payments processed through the website also rose by 49.1%.
Change in Property Preferences:
The COVID-19 epidemic has also caused a shift in consumers’ property choices in Islamabad. Many individuals are seeking residences in peaceful places away from the city area when schools and offices are closed. This tendency has increased the demand for houses in Islamabad’s outskirts and surroundings.
During the epidemic, 50% of respondents in Islamabad chose houses in calmer locations, according to real estate specialists. According to the survey, 40% of respondents choose houses in the suburbs, while just 10% prefer properties in the city center.
Conclusion:
In summary, the COVID-19 pandemic has had a significant effect on the global market of real estate. Property prices and sales have decreased in certain places while increasing in others. Also, buyers’ preferences have changed to favor homes with offices and those in more peaceful neighborhoods.
Yet, the epidemic has also sped up the adoption of technology in the real estate sector, leading to an increase in digital transactions and virtual tours. As more individuals become accustomed to utilizing technology for real estate transactions, this tendency is likely to persist even beyond the pandemic period.
The real estate sector will need to adjust to the shifting market circumstances and buyer preferences as the globe struggles to contain the crisis. To execute transactions and satisfy the demands of buyers and sellers, it will also need to be flexible and creative. The pandemic will undoubtedly continue to influence the real estate market going forward, even if its full effects are still unknown.