The outbreak of the coronavirus (COVID 19) has forced a lockdown in most countries in the world. Everyone is persuaded to stay at home (indoors) for the next few weeks for safety purposes. Given how both the scope of the pandemic and the nature of governmental responses to it seem to change practically by the hour, it will be hard to predict exactly where things stand in the real estate market.
As the coronavirus continues to spread, there is fear and trepidation in the air among real estate community, especially as travel and other economic activities have slowed or stopped.
While the real estate industry as a whole appears (at least so far) to not be affected to the same degree as the travel and entertainment industries, what impact can we expect the coronavirus to have on the real estate industry over the course of the next few months and years?
RELATED: Coronavirus (COVID-19) and the Nigerian Real Estate Market
First, the mode of communication will change. Telecommuting has certainly gained momentum in the past few years. But in the face of coronavirus, employers now encouraging their employees to work from home during the outbreak. With this trend not likely to go away with the end of the pandemic, employers are getting an unexpected preview of what a significantly smaller office footprint could look like in the future. Technology companies that offer video conference and live chat features are becoming quite essential as businesses try to make a smooth transition for their employees working from home.
The prominence of telework in response to the coronavirus threat is a reminder that the technology can help employers manage other risks as well. For example, telework can enable firms to reduce the risk of losing productivity to regular or catastrophic traffic disruption. Offering telework as a benefit can help employers afford the cost of hiring high-skill labor, and keep these workers connected to the office and each other no matter where they’re based
Technology companies such as Zoom and Slack are being thrust into the spotlight as businesses try not to skip a beat with their employees working from home. Other software and hardware that’s handy to have include Skype and GoTo Meeting.

Also, there will a need for Virtual Reality. During these unprecedented times, virtual reality (VR) offers a strong alternative to video calls and those that adopt it could well choose to maintain virtual communication as a long-term strategy.
One of the biggest benefits of the medium is its ability to make people feel like they are in the same space together, without the need for travel — a clear win for the environment and better use of time and budgets. These virtual environments can be designed for optimal comfort, productivity, and creativity.
Typically, clients visit multiple properties before deciding on the one they want. This requires a lot of time and things get complicated if a property is far from where a client lives. In this case, visiting a property is not only time-consuming but can be expensive.
VR technology helps solve these problems, allowing millions of people to virtually visit properties without leaving their homes. Simply put on a VR headset and you can experience immersive, three-dimensional walkthroughs of properties. In a matter of minutes, potential buyers or renters can virtually visit dozens of locations and decide which are worth visiting in person.
In addition, the industrial sector will also feel the impact of the coronavirus outbreak, both good and bad. If online shopping becomes more prevalent as a result of the coronavirus, more industrial space will be required to house inventory at distribution centers.
Conclusively, although it is relatively straightforward to assess the immediate and direct real estate impact of COVID-19 with an escalating number of event cancellations, office closures, travel restrictions, and quarantined areas, the indirect effects are yet to be fully realised. Cities and countries which have seen the highest number of cases will certainly feel the direct impacts the hardest, but all locations will experience the indirect effects, be it a reduction in tourism, breakages in supply chains or even changes to the way we all live and work.
The longer-term societal and real estate implications could continue to be felt over the years to come. The impact and aftermath of COVID-19 will change our way of living and working, potentially leading to new operational models: