West End

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Great Britain have booked the house prices, their biggest monthly fall for 11 years

The saying "there's No Place Like home" is perhaps not heated so the heart, a thought in These Days .

After All , have been blocked most of us, you can. in Our House or in the apartment for a very long time

The Corona-Virus-pandemic, however, will do More Than change The Way we feel may have about our homes. It has the potential to be a great influence on the Real Estate markets around The World .

It is pretty clear to buy That with massive unemployment, wage cuts, bankruptcies, and job uncertainty, Many people are likely to be careful and make the biggest investment in your life-a house.

what else leads to falling house prices, and during The Last recession and credit crunch, this is what we saw in the UK, the USA and Many other Countries .

has caused The economic uncertainty caused by a novel coronavirus, has the risk of people from buying a new home

In the UK, the nationwide house price index for may

But, as Robert Gardner , the nationwide's chief economist, noting, "there are some signs this is beginning to stabilise". He adds That this is not because the current situation is a typical economic downturn.

Instead, the British Government - Like others around The World - to be aware of a lot of decided to hold of the economy. This Was at the same time as the implementation of a variety of measures to support households and businesses, how The Worker furloughing scheme.

The Hope is therefore That the be increased as the lockdown restrictions, the people will recover economies and Real Estate markets.

In the United States, "Many areas [of the country] have evictions and a moratorium on forced, usually for 60 to 90 Days , but in some areas, for six months," says Prof Nori Gerardo Lietz, who teaches Real Estate investment at the Harvard Business School.

This means That the immediate issues have been postponed to landlords and The Banks , this is not to say That it is not trouble further down The Line . Especially, as the - 13. 3% in may, albeit down from the 14. 7% in April.

But, behind this headline, there are other forces at work in the Real Estate sector. Many of us have suddenly realized That we can work from home and avoid the commute and The Office , and the impact on The Market .

With Many of us successfully from home during the lockdown, The Office is always so busy as before?

Rightmove, the UK property website, reported a with larger gardens and room for a Home Office . This may not be a permanent change, but coronavirus is certainly so That Many people think about how and where they work and live.

For the commercial Real Estate area, The Changes are much more dramatic, especially on the British High Streets.

"retail [in the UK] has problems, for age," says Prof Michael White , an expert in Real Estate economics at Nottingham Trent University . "And at The Moment , the income is obvious hits furloughs, And Then there is a pressure on spending in a recession. "

It means an acceleration of what we saw before The Virus struck - Many of The High Streets available were all for The Years . And now, Many of us have discovered, how much we can buy online, is only to increase in speed.

An additional Problem is That prior to the coronavirus, the trend was in the direction of fewer shops on The High Street, and more services - Things That you can't get online, such as cafes, hairdressers and beauticians.

"The Twist is That these services were taken, so we have seen a slowdown in the growing trend," says Professor Andrew tree, who will lead The Future of the Real Estate Initiative at the University of Oxford Said Business School.

Many of the British shopping streets already suffering before the lockdown

This means That High streets have been beaten, twice as heavy - a lot of shops are closed, and face-to-face-service-provider have almost completely closed.

The result of an increase in rent arrears was. This is not only a question of the landlords lack of or delay of one or Two Quarters of rising rents, this is a massive problem for the industry.

But if this is the beginning of a long-term trend, then That is cause problems, and may be a knock-out in the capital value of Many retail properties, possibly due to the 20%-30% believes Prof tree.

In the United States, where there is a similar trend in the retail sector, The Problem is slightly different. As the land is so cheap, and the building permit so easy to get, there is a long tradition to be retail parks and shopping centres, leaving, if they not money, or costs too much to update. The effects of the Corona-Virus is, you could increase this trend.

"The Problem with the US retail sales is That it is not built over, but That it be demolished," said Prof Gerardo Lietz.

Nori Gerardo Lietz says That potential problems in the U.S. housing-has been delayed in The Market ,

For provider of Office Space , if coronavirus is a one-off hit, with only two districts, rents are deferred, there is little reason for property values to be affected.

But instead of coronavirus could actually have a massive impact on the industry. After All , if the Real Estate Market is changing, as people are more suburban and rural properties where you can work from home, there will be less need for office spaces to work.

The Office property Market will therefore have to adapt, something Prof White believes That the industry is Very Good at.

As he explained, if you undress, inflation, "the average rent prices in London are the same as they were 100 years ago". He says this shows That The Office Real Estate Market was Very Good at matching supply and demand for a very long time.

As the UK's capital city needs more offices in the 1950s and 1960s, Many of the townhouses in The West End converted to residential / commercial use. Then The City of London was rebuilt in the 1980s, with skyscrapers That appear, and the Canary Wharf in the former docklands in the 1990s, was built in London.

Recently, as London has more of a needed accommodation, buildings, including office and administrative buildings That were turned back in the flats and apartments.

In the US, old shopping malls, only to be abandoned are often

Overall, the Real Estate Market has two Things for it, even in these fast-Changing Times .

The First is That , even if The Price of the property falls, it can be still a wise investment. That sounds perverse, but property is a long-term investment and not Many others are safe and pay a good return.

So, if Government bonds pay 0. 5% interest in the year, or even less, and the property makes 3-5%, you are still a good source of income if you are a private investor or a global investment Fund.

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The Second factor is That for all The Talk of bricks and mortar as a solid and unchangeable, the industry has over The Years proved to be remarkably flexible.

this may change over time, the use of land and buildings, and often does so surprisingly quickly. Consider The Environment in which they live, and there are Many indications That the shops are now apartments, old factories That are now hotels and warehouses, become a dance studios.

The Corona-Virus pandemic can be a massive shock to the Real Estate markets, but it is also The Changes That take place can accelerate.

housing market, coronavirus lockdown measures, coronavirus pandemic, global trade

Source of news: bbc.com