In a new interview with Argaam, our founder and CEO Abdulmohsin Al Omran discusses the impact of the Covid pandemic on the real estate market. Below are highlights of the interview:
- During the Covid pandemic, each type of real estate was impacted differently. Some types like logistical warehouses benefited from the pandemic with the increasing demand for online shopping, while others like offices were impacted negatively due to the transition to remote work.
- Real estate valuations weren’t as affected during the pandemic as they were in 2008, as quantitative easing and declining interest rates allowed the real estate market to avoid the recurrence of the 2008 financial crisis.
- With the growing interest in smart cities, real estate developers will design buildings according to the new needs of this industry. Current specifications might change in the future with the progress of technology and internet, and therefore affect the type and specifications of property.
- Real estate is an important part of the investment portfolio but should not exceed 50% of it.
Watch the interview to learn more about the importance of real estate investments and trends.