The COVID-19 has created a worldwide crisis that is set to change the world order in the most dramatic way. Whether the outcome will be good or bad is something that we need to wait and see. It is likely to change how we travel, buy homes, invest our money, view savings, adopt to new surveillance techniques and our mindset to take risks.
The coronavirus has us contained in our homes. It has shut businesses and individual spending has been brought down to the bare minimum. There are changes that are expected in the coming months that will unsettle nations and the way we do business. But every crisis also brings its own set of opportunities. Technology is testing its limits and finding new ways to engage customers who are home-bound. People are today more appreciative of the outdoors and have a changing view of being outdoors.
The two major economic crisis – the great depression and the Asian financial crisis brought about visible habitual changes in the way people treated money. This time a public health crisis has brought the wheels of the world economy to grinding halt with every nation developed or developing struggling to cope with the crisis.
The COVID-19 crisis will definitely see more people changing the way they save and invest. Savings and investments towards health crisis will increase on an individual level while countries will focus more on strengthening their healthcare systems in order to be better prepared for a future crisis of a similar nature. Investing in capital markets might see a shift into investing in more favorable options such as real estate and fixed deposit savings in order to save themselves from the vagaries of markets that saw a phenomenal dip across the world due to this crisis.
The world will see more liquidity in the next few months as countries pump in financial aid to keep the economy buoyant and help businesses stay afloat. Lower interest rates would help stimulate more purchases and borrowings from financial institutions. Large purchases like real estate will also see an upswing in order to capitalize on the lower interest rates and the banks’ willingness to disburse loans.
While the way we travel and work will change forever once the COVID-19 crisis tides over, the way we spend our money will also change. Affordable housing might become more attractive as an investment option for everyone who suffered from paying rentals during this crisis. Commercial properties will also see a change as more offices have now experienced the productivity of having most of their workforce working from home. Offices might look at downsizing spaces and use the options of working from home. Thus, changing the commercial rental and buyer landscape forever.
