Eitan Eldar: "Coronavirus crisis could be an opportunity to invest in the UK real estate"
The coronavirus pandemic is currently taking its toll on the global stock markets. As the pandemic becomes more wide-spread with the high increase in the havoc being wreaked on the global economy, house prices in the UK could fall by 20 per cent in the worst-case scenario. The temporary collapse in real estate prices by the coronavirus crisis presents an excellent opportunity to purchase real estate in the UK.
By: EEH Ventures
Eitan Eldar says, "The real estate market has already witnessed a decline in house prices since the coronavirus crisis began. the current situation has trapped some families that were on the verge of moving homes in negative equity. Moreover, if the situation worsens and the Government's efforts to salvage the economy fail, we might witness a drop of up to 12 per cent collapse in price, which would reduce up to £28,000 from the current average home price, which stands at £234,700."
Just some few weeks back, some data were released to display the rise in the UK real estate prices over the past two years. However, the coronavirus pandemic has crumpled the surge in real estate prices back down to earth.
Eitan Eldar says, "The prices of properties are crumpling with a significant drop in home values because buyers keep shelving viewings and shifting off their plans to move homes. The coronavirus pandemic will stall the recovery of the property market we have witnessed since Brexit."
What could real estate investors do in this coronavirus pandemic
The coronavirus crisis currently hurts the world economy, crumpling home values, and collapsing stock markets. The market situation now presents an inevitable recession in the UK, which might be a perfect opportunity for investors.
Eitan Eldar says, "We should expect a gradual rise in price in the general stock market after this coronavirus crisis. Most especially the prices of real estate might rise by 5 per cent for the next three years as the global economy recovers."
More so, people are no longer looking for new homes in this coronavirus crisis. They are only interested in staying safe in their homes until the coast is clear except in desperate situations.
"As there is a significant drop in prices of properties, this is a perfect time for real estate investors to purchase real estate in the UK. Because after this coronavirus outbreak, prices will bounce back and continue to be on the rise like they did since after Brexit," Concluded, Eitan Eldar.
Eitan Eldar - EEH Ventures