Manhattan is no longer the same and there is a fear of a post-Covid exodus to other realities. Covid has drastically changed our lives, including the real estate market. Just before the pandemic explosion, New York was defined as a real supercity, but now the streets of the city are totally deserted. Because of the anti-contamination measures that persist. Indeed, they begin to be followed with more rigor because of the increase of the infected and the dead. But how will the situation be? Will there be a post Covid exodus? To know, we have no doubt. We will look for the solution in the next few lines! With the new column signed Realigro !
Let us begin!
Six months after the beginning of the pandemic, the first data begins to decipher. Those of a post Covid exodus. In Manhattan, 10% of the workforce has returned to the offices, a low percentage. Too low, which does not bode well. Theaters are closed indefinitely and tourists are not even in sight. And again, the stores are completely empty or even barred. Even in neighborhoods defined as ”shopping streets” are now far from that definition. Just think that even the Hilton hotel in the famous Times Square has closed its doors.
So it seems a rather alarming overall picture, but… will it be the same for real estate?
What is the situation in Manhattan real estate ? In this period, although the number of sales has decreased, there have been some price peaks. For the offices, the maximum ceiling reached was 429 dollars per square meter. A decrease of 57% compared to the same period in 2019. There are no surprises then . It seems that the situation is in any case proportionate to the international crisis. Many people have decided to flee to second homes. Perhaps in areas much quieter and farther away from the centers of aggregation. It is not surprising, therefore, how, as a result, house prices in the suburbs have even doubled. In short, a reversal of course that has left the experts in the field perplexed. They are unlikely to be able to make precise and detailed forecasts in this regard.
There have also been other realities that have had this biblical collapse in the real estate market. So much so as to announce a post Covid exodus. We are talking about San Francisco, Los Angeles, Miami, Boston, Seattle and Washington.
Is there a positive side to this announced post Covid exodus ? The answer is in the same question. If we are talking about an exodus, we are referring to a displacement, so there will be a strong focus on the new centers of interest. The smaller and less fashionable neighborhoods will become the most sought-after. A return to the origins ? Perhaps. But before saying it with certainty, we just have to wait.
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