If there’s one sector that could be forever changed by COVID-19, it’s real estate. Whether it’s the increase in remote work or wave after wave of lockdowns, people’s ideas about where and how they should live have shifted. In many cases, this has driven a mass exodus out of claustrophobic downtown high-rises and into the spacious neighborhoods of suburbia.
After being cooped up in the same place for so long, an increasing number of people want to live somewhere with more room. Many want bigger backyards or green spaces where their families can play outside, while others want more room inside.
The massive generational wealth transfer between baby boomers and their children is opening up new opportunities. Much of this generation’s wealth resides in real estate, leaving the next generation with assets many don’t want to run. With more people at home, tenants are demanding better amenities, whether it’s parking, stronger Wi-Fi, more security cameras keeping an eye on people’s property or faster response times to fix issues.
High net-worth individuals and retail investors who work with advisors and portfolio managers want to own assets that are not correlated with the broader stock market — especially after the volatile year equities have had. At the same time, the potential for inflation seems to be making real estate a more attractive asset, as it has historically maintained or appreciated in value during inflationary periods.
As the pandemic drags on and there’s more and more talk of looming inflation, there is no better hedge to inflation than real property. Technology has enabled a lifestyle shift, people have a desire to be at home, and that correlates into a greater value for space — and, in turn, more potential opportunities for investors.
As a highly experienced and successful financial services executive with solid track record in the international financial services industry, Mr. Rani Jarkas, together with his team, offers international clients with best-in-class full suite of financial services at Rani Jarkas Firm, including customized financial planning, to help them meet their personalized investment goals in consistent with risk management and investment horizon goals.