COVID effects on the property market and South African investment positivity
It is difficult to address the effects of the COVID-19 pandemic on the economy when so many people experienced personal loss and trauma during this time. But then you think about it for a minute and consider the impact the virus has had on our livelihoods and business operations as well, and then only does the entire picture come into view. With that being said, why then has the real estate market not only been able to stay buoyant but, in contradiction to earlier predictions, show immense activity and growth during the past year.
I think a lot of it has to do with South African resilience and mindset. As we've just entered Level 1 restrictions and low infection rates remain steady it almost feels as if there is light at the end of the proverbial tunnel. What's important to note though is that even during the dire stages of the stricter lockdown levels we had high real estate market activity. People were enquiring about properties and estate agents in certain areas were in high demand. This is a true testament to our ability as South Africans to face ongoing challenges head-on whilst maintaining faith in our investment future.
The real estate market has presented a lot of South Africans with an opportunity to become homeowners and this is precisely where we have seen market growth. Many first time buyers have stepped into the housing market and were able to identify the long term investment return in real estate. Our homes have been the one thing that has become so central in our lives over this time. The quarantines, lockdowns, feeling of safety and comfort in an unknown future. Those four walls have been our shield against everything else that is happening in the world.
We continue to see the value in real estate and even when the most adverse economic or environmental effects impact our lives, we know that our one primary investment can make all the difference.
16 May 2022
Author Richard Gray - CEO of Harcourts South Africa
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