Updated: May 18
As it stands right now the Novel Coronavirus (COVID-19) hasn’t had any huge impact on the Canadian commercial or private real estate markets in Canada. However, this is only the beginning and enough time hasn’t passed yet in order to make an accurate prediction. The Coronavirus continues to impact the world and Canada is no exception this. Everyday new information is being released and more countries are reporting new cases daily.
International investors in commercial real estate
Recently Air Canada announced it was cancelling all direct flight between Hong Kong and Canada. This will have a future impact on foreign investors from China as no one is arriving to the country to view properties and make investments. As Canada and the rest of the world continues to close their borders many foreign investors will be unable to arrive in Canada which will slow the rate of new purchases in the real estate market. As the world continues to work on a vaccine to the Coronavirus, a potential cure in the coming months could see the market bouncing back in or around the end of summer maybe by the beginning of fall.
When comparing Canada to such countries as Italy, China, Spain and South Korea, so far, we have been far less affected by Coronavirus. In Canada Flu season tends to end around May however the current flu like virus has no known cure or end date in sight. If we assume the current situation with the Coronavirus is better in the coming months, then that should allow the real estate market to bounce back.
Staying at home
Canada is currently moving more towards isolation and asking people to stay home. This in turn is forcing commercial business to close their doors. In order to avoid having to many people gather in the same location places such as coffee shops, restaurants, bars and shopping malls have all been indefinitely closed. Some businesses have even closed for good leaving empty many commercial real estate properties. The longer the virus continues to affect Canada and the world the higher the likelihood that more businesses will close their doors for good.
Private real estate
The impact on the non-commercial sector of real estate will likely also be affected by the current situation with the Coronavirus. Open houses will no longer be taking place. Real estate agents will have difficulty showing off homes and condos in person to groups of people who might be interested in purchasing. Thanks to advancements in technology and video chat software real estate agents will be able to work from home giving people virtual or video tours of potential properties they may be trying to sell.
The potential impact
If the situation does not improve in the coming weeks and months this will potentially have a huge impact on the value of commercial and residential property. Those in the market to make a purchase will be hesitant to make a purchase. However, with values potential going down prices may be more in the buyer’s favour. Sellers may be willing to take less in order to make a sale. Commercial property owners will most likely find it hard to find renters or buyers. This will force them to lower their asking prices if there is any demand in the first place.
At David Ghavitian Inc we are closely monitoring the news to see how it can and will affect the Canadian real estate market. We are prepared for this and every other possible outcome as the world continues to adapt and evolve. Our highly trained and experienced staff are prepared to answer all your needs. We know the coming weeks and months maybe longer, will be causing big changes in our daily life and routines. Anyone that does not adapt and prepare will not be ready when the time comes to make informed decisions. Don’t let your investment to go waste. Protect your assets. Having an experienced real estate lawyer by your side can help you navigate this strange and ever-changing times we live in. Contact David Ghavitian Inc today to see how we can help and answer any questions or concerns you have about your real estate properties.