The Impact of Covid-19 Pandemic on the Real Estate Market Development Projects

Abstract

During the Covid-19 pandemic, there were changes in the way businesses operate around the world. Market participants have focused their business on business by applying egovernment services. The impact of Covid-19 was also felt in the real estate market development projects. The paper gives a parallel overview of the real estate market in China, the USA and Europe. An overview of data from the real estate market in Serbia is given on the basis of data from the Republic Geodetic Authority. Regardless of the fact that the virus pandemic appeared in different time periods in the world, it can be concluded that the indicators of changes in the real estate market indicate the same trend of the behaviour of the indicators.

Sustainable Construction Investment, Real Estate Development, and COVID-19: A Review of Literature in the Field

“…The case of the Chinese real estate market, considered to be the focal point of the pandemic, demonstrates [89] that a decline in real estate value caused by the COVID-19 pandemic was to a greater extent influenced by social constraints and governmental anti-viral interventions to control the pandemic. Jovanović-Milenković et al [90] agree that owing to threats to the life of the population and restrictions on free movement, the declining demand for real estate might be primarily affected by the population's desire to meet existential needs and maintain personal health [90]. Nicola et al [91] find real estate uncertainty due to the COVID-19 pandemic to be another reason.…”

“…Thus, rental prices in suburban areas grew much faster than in urban center during the abovementioned period [93]. A study performed by the national association of real estate agents Realtor concludes that residents preferred real estate with a private yard when purchasing residential housing [90]. Billio and Varotto [86] maintain that families having children will mainly look for independent real estate units such as detached and semi-detached houses with gardens and terraces, and households hoping to work from home may be encouraged to buy real estate outside the urban center where prices per square meter are usually lower, because, as stated by Belk [95], the need to live close to the urban center is reduced.…”

“…Apart from a significant impact on real estate prices, the pandemic will bring a different understanding of upcoming research on the real estate market, property search, and sales processes [90]. The author notes that the situation observed in the market has stimulated vendors to increasingly use remote communication tools such as virtual communication and 3D viewing, employing Skype or FaceTime to reduce the risk of infection spread [91,92].…”

“…Over 8000 transactions were handled within five days of launching the Leju platform. Jovanović-Milenković et al [90] emphasizes that some world banks started implementing real estate assessments based on virtual tours and approaches.…”

COVID‐19 and the urban housing affordability – evidence from select Indian cities

“…Tanrıvermiş (2020) studied the Turkish housing market where there was a decline in housing sales but properties became more affordable during the pandemic. Jovanovic et al (2020) examined real estate markets for USA, UK, China and Serbia, and concluded that in all markets, there was a trend for prices to go down which made buying a house easier at a desired price point. These clearly document similar shifts in demand or supply of international real estate markets such as Turkey, India, China, Great Britain, Serbia and Italy.…”