When referencing Bank Rate, it is important to note that real estate encompasses not only the land itself, but also the structures and resources located there. Both commercial and industrial uses of real estate, such as running a store, office building, or manufacturing facility, require suitable locations. However, real estate that is primarily intended for human habitation constitutes the vast majority of all property. Any sort of property, from the smallest cottage to the grandest mansion, can be found in a residential area.
In other words, residential real estate is created when a piece of land that has been zoned for residential use is purchased and developed. Therefore, real estate can refer to everything from property to land to structures to air or ground rights over or under a piece of property. The literal or tangible property is meant by this phrase. Real estate can also mean the making, buying, and selling of tangible assets in the context of commerce. Furthermore, the real estate industry is a key economic driver that affects national GDP growth.
The Covid-19 pandemic caused a sequential economic slowdown in Indonesia throughout the second, third, and fourth quarters of 2020. The slowdown has impacted several industries negatively in Indonesia, particularly the real estate market. The values of most forms of property, including homes, apartments, and automobiles, have dropped significantly. Expenditure restraint in the face of a pandemic has contributed to a drop in demand for real estate.
While a drop in property value is usually bad news, there are several situations in which it might be beneficial. Those with a genuine need for a home may fare better now that prices have dropped. A large number of people have been interested in real estate transactions as a result of the many incentives offered, such as lower interest rates and simpler transactions.
Real estate, which includes things like homes, land, and buildings, is an extremely potential investment commodity beyond just meeting the basic necessities of a society. Property is a sought-after investment option due to its steady appreciation in value, minimal volatility in price, and low risk. Phil, a global stock market specialist in the year 2020, investigates the effects of COVID-19 on the stock market. His analysis indicated that the COVID-19 epidemic was an excellent opportunity to invest in the stock market because many people were selling their holdings at low rates. In the midst of the ongoing Covid-19 pandemic, the real estate market represents the only secure investment option available to financiers.
Due to the abrupt reduction in market circumstances caused by the 2019 Coronavirus Disease (Covid-19) pandemic, developers have had to be more flexible than usual. At this time, the community’s priority is on the well-being of its members and their families rather than the real estate market. Some argue that the property market bottomed out in 2020 after being stagnant since 2014, and that current conditions are merely a continuation of this pattern.
While the property began to show signs of improvement by year’s end, it took another setback in early March 2020 when it was revealed that the first two people to contract Covid-19 had been identified. It is not true that developers in such a position are obligated to keep quiet for fear of worsening the company’s predicament. Branding products and enticing consumers to buy them will continue to be priorities, but the rollout of these initiatives will be concentrated on the largest markets.
As a safest preemptive measure, developers would typically solely focus on selling existing products and delaying new product launches rather than continuing to evaluate the market to issue the best plan in scenarios like these. Launching a product in the current market is possible, if sufficient research has been conducted. It’s not enough for a developer to simply change their approach to development or marketing. Many developers have transferred their marketing resources from traditional offline channels like trade shows, grand openings, and prime locations in shopping malls and other congested public spaces.
Increase in property value is due to four distinct causes. A rise in urban and suburban real estate prices can be attributed, in part, to two factors: first, net population expansion, where property demand is driven by exponential population growth rates or migration, and second, increased supply. Earnings growth and job availability are the second topic. Consumers are more ready and able to invest in real estate when their income, or their level of MSE, and the unemployment rate fall. The next topic is official policy. Ease of licensing, tax breaks, and public housing subsidies are all examples of government policies that affect the availability of property. Funding options are now available. Consumer purchasing power can also be improved by interest relief based on high or low seven day repo rates and through the availability of low-interest home loans (KPR).
By: ANDINNA SEPTIANA ESA PUTRI
Write and Win: Participate in Creative writing Contest & International Essay Contest and win fabulous prizes.
