Introduction:

The coronavirus continues to add infections and fatalities. More than 30 countries have reported confirmed cases, and the number of affected people worldwide exceeds 80,000. The World Health Organization (WHO) itself has warned that we could be facing a pandemic.

Even though the mortality rate of the COVID-19 virus is currently low, more and more analysis firms are warning of the impact it can have on the global economy, and even on the ‘real estate’ market. As the coronavirus pandemic spreads globally, Pakistan has recently become one of the countries with the highest number of cases and is currently under lockdown as a precautionary measure.

What is Corona Virus?

Coronaviruses are a family of viruses that can cause diseases such as the common cold, severe acute respiratory syndrome (SARS), and Middle East respiratory syndrome (MERS). In 2019, a new coronavirus was identified as the cause of a disease outbreak that originated in China.

This virus is now known as severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The disease it causes is called coronavirus disease 2019 (COVID-19).

Symptoms of Coronavirus

The signs and symptoms of COVID-19 may appear two to 14 days after being exposed, and may include:

  • Fever
  • Cough
  • Shortness of breath or difficulty breathing
  • Fatigue
  • Pains
  • Runny nose
  • Sore throat

The severity of COVID-19 symptoms can range from mild to severe. Some people have no symptoms. People who are elderly or have certain chronic conditions, such as heart or lung disease or diabetes, may be at higher risk of becoming seriously ill. This is similar to what is seen with other respiratory diseases, such as influenza.

Causes

It is unclear exactly how contagious the new coronavirus is. It seems to be transmitted from person to person among those who are in close contact. It can be spread through respiratory droplets released when someone with the virus coughs or sneezes.

It can also spread when a person touches a surface that has the virus and then touches their mouth, nose, or eyes. Once prompted, Coronavirus can have dire consequences, including pneumonia in both lungs, multiple organ failure, and can ultimately result in death

Prevention

Even if there are no vaccines to prevent infection with the new coronavirus, you can take steps to reduce your risk of infection. The following precautions can be taken to avoid COVID-19:

  • Avoid crowded events and crowded gatherings.
  • Avoid close contact (approximately 6 feet or 1.83 meters) with anyone who is sick or has symptoms.
  • Maintain physical distance from yourself and others if COVID-19 is spreading in the community, especially if you are at higher risk for serious illness.
  • Wash your hands frequently with soap and water for at least 20 seconds
  • Use a hand sanitizer that contains alcohol.
  • Cover your mouth and nose with your elbow or disposable tissue when you cough or sneeze. Discard the used disposable tissue.
  • Avoid touching your eyes, nose, and mouth if your hands are not clean.
  • Avoid sharing plates, glasses, bedding, and other household objects.
  • Clean and disinfect frequently touched surfaces.
  • Stay at home and don’t go to work, school, or public places, except for medical attention. Avoid taking public transportation.

Implications of Corona Virus on the Real Estate Market

With the complete lockdown in Pakistan, several industries, including real estate, will be affected. The global economy has already come under scrutiny as this virus spreads, and our country is facing the same hardships. With that said, let’s discuss the current situation and the implications of this dilemma, particularly for Pakistan’s real estate industry.

Across Asia, including Pakistan, the coronavirus outbreak has prompted many companies to implement various remote work plans, affecting the pace and nature of business operations. The increase in online activity and data connectivity as more people stay and work from home has increased significantly.

As for the real estate market in Pakistan, the Covid-19 outbreak is causing indirect consequences by accentuating the tidal change driven by technological advances and new lifestyles, which are altering real estate demand and use.

With the progression of drastic measures taken by the government of the complete lockdown of all major cities in Sindh, KPK, and Punjab to control this Pandemic in the country, all the economic activities have slowed down.

The extent of COVID-19’s spread remains unknown, but the daily increase in cases has created a sense of panic and caution across Pakistan.

The uncertainty and these unfortunate events have also negatively impacted the stock market in Pakistan. Investors are hastily withdrawing their investments, resulting in a downward trend. The value of the pound and the dollar has also fallen due to the economic crisis worldwide.

Current Situation of Real Estate in Pakistan after Covid-19 outbreak

The real estate sector in Pakistan was already on the mend due to government policies implemented in 2018, and now this outbreak will certainly be another setback for the industry across major cities, including Rawalpindi, Islamabad, Peshawar, Lahore, Karachi & Multan.

However the current climate indicates that the real estate market will potentially face a serious downfall in the coming few days, the fact remains that in the current situation staying safe and fight against this deadly virus is more crucial.

The workers & laborers in the mechanical and construction fields have been restricted, as their work has come to a halt due to a lack of development of raw materials and products. Similarly, in residential and commercial properties, after the closure of all offices and the country-wide lockdown, everyone, including investors, has confined themselves to their homes to avoid risking their safety. All the business activities in the country have paused.

Although most real estate companies and offices in Pakistan, including Capital Smart City, Bahria Town, DHA Peshawar, and many others, have halted operations and are taking preventive measures, ranging from thorough cleaning to dispensing sanitizers and, in many cases, working online from the comfort of their homes.

Big Real estate companies like DHA Peshawar, DHA Lahore, DHA Rawalpindi, and Bahria Town have closed their doors until the situation is under control. The companies are continuously searching for a framework that can sustain the business in this crucial period.

However, the real estate price index in Pakistan has not suffered much, but activity is anticipated to decrease significantly due to social distancing and the closure of physical offices across the country.

However, transactions and online booking services are still offered by real estate companies such as Sky Marketing and Park View City; the local real estate and property offices shall remain closed until further notice.

Future of Real Estate in Pakistan post Coronavirus

The next few months are highly anticipated for the real estate market, not just in Pakistan but worldwide, as activity will begin to pick up after this epidemic.

The experts anticipate property prices will drop by 10-20% due to a lack of market activity. It is advised not to sell your properties in this climate, as you are more likely to suffer a loss; on the contrary, it is an ideal time for investors, as investment costs will be at their lowest.

The global travel ban will also have dire implications on the real estate scenario, as overseas investment will be restricted for an unforeseen period. The biggest cities in Pakistan, i.e., Karachi, Lahore, Islamabad, and Peshawar, will severely suffer as the majority of investment in these regions depends upon the overseas Pakistanis.

Although housing societies like Blue World City and University Town are administering online bookings to keep operations flowing by providing the opportunity to invest from the comforts of your home, these efforts are unlikely to keep the industry afloat.

Billions of dollars have been sanctioned by European nations and America to their citizens to stabilize the economic crises, but unfortunately, Pakistan is one of the struggling nations that still depends on foreign aid.

Not only the real estate sector but also all other industries, including financial institutions, construction, import and export, manufacturing, hotels and travel, and medical & educational, will suffer heavy losses because of this epidemic. It is only fair to say that we need to be mentally and financially prepared to face the situation ahead. It is not only up to our government, but also to us, the citizens of Pakistan, to contribute and do our part in improving and preventing this in this time of distress.

Conclusion

At this point, all we can do is hope and to wait for this situation to pass and see where we stand. The real question isn’t whether this epidemic will hit the real estate sector; let’s face it, we are already facing a major blow to the industry.

The real question we should be asking is: how long will it take us to bounce back from the damage Covid-19 is causing once the situation defuses?

For more information and updates on the real estate market and our projects, keep browsing our website, or contact us directly via WhatsApp or online chat. We at Sky Marketing are available 24/7 to assist you with all your property needs. Stay home to stay safe and healthy until the crisis is over.