{"id":19604,"date":"2020-05-31T10:43:56","date_gmt":"2020-05-31T08:43:56","guid":{"rendered":"https:\/\/www.weetas.com\/article\/?p=19604"},"modified":"2021-11-07T15:57:49","modified_gmt":"2021-11-07T13:57:49","slug":"coronavirus-impact-is-rent-in-crisis-during-covid-19","status":"publish","type":"post","link":"https:\/\/www.weetas.com\/article\/coronavirus-impact-is-rent-in-crisis-during-covid-19\/","title":{"rendered":"Coronavirus impact: Is rent in crisis during COVID-19?"},"content":{"rendered":"

Real estate is a key measure of economic wealth. The real estate sector is the same as other markets where it is affected by crises, especially the COVID-19 virus which the world is still suffering from its negative effects, that have affected most fields and sectors, and its impact has appeared directly on the economic sectors. <\/span>With that emerging crisis, do you think the real estate sector will be affected by the same speed as other markets?\u00a0 Do you find that rent in crisis is lost to the tenant?\u00a0 This is what we will get to know in this article, keep reading.<\/span><\/p>\n

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Real estate market<\/span><\/h2>\n

\"Real<\/p>\n

As we said that real estate is essential in economic wealth in the world, especially for the GCC.\u00a0<\/span><\/p>\n

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From 2003 to 2008<\/span><\/h3>\n

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As investment in the GCC, especially investment in real estate, grew from 2003 to 2008. Saudi Arabia and the UAE accounted for 82% of the total foreign direct investment that the GCC attracted.\u00a0<\/span><\/p>\n

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2008 & 2014\u00a0<\/span><\/h3>\n

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Let’s go back and remember the financial crisis that occurred in the region in 2008 and the decline in oil prices in 2014, which led to a 40% drop in real estate prices and rent in crisis, and the emergence of many challenges,\u00a0 leading to a decline in demand for real estate in the Gulf Cooperation Council countries and resulted in investor sentiment in the GCC to plummet.\u00a0<\/span><\/p>\n

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Over the past years<\/span><\/h3>\n

\"Over<\/p>\n

The need for both commercial and residential real estate has increased as a result of the influx of expatriate people into the Gulf countries and the rise in per capita income.<\/span><\/p>\n

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Do you think that the real estate sector will be affected again rapidly or not? Of course not, the real estate area, especially the residential sector and REITs investing in the residential sector comes after many sectors such as the stock market, gold, oil, and currencies. But what do epidemics have to do with rising and low property prices and the housing crisis?<\/span><\/p>\n

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Real estate is a market commodity that is affected by all economic and political crises but will not reach the stage of collapse, as the market needs more properties so that there is a balance between supply and demand.<\/span><\/p>\n

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Real estate indicators in the Gulf countries after the Coronavirus\u2019s outbreak:<\/span><\/h2>\n

\"Real<\/p>\n