The Effects of Covid-19 Pandemic on the Property Sector

From past to present, many incidents such as epidemic diseases, wars, crises, disasters etc. occurred. Some of these incidents have left deep traces in our lives. It has created effects in social, economic, environmental etc. areas. Major events that trigger the closure of an old period and the beginning of a new period can cause behavioral changes in humans. Today's pandemic has also put economic units into a process of obligatory change. The fact that people live in isolation in their homes during this process and carry out their professions, education and shopping from home with digital facilities indicates that the age of technology has started. Due to the risk of transmission of the virus, the activities of the sectors with which people are in contact were curtailed, while spending in the food, health and housing areas increased. Basic balances of the macro economy such as income, consumption, saving and investment are changing. Economic policies implemented to ensure macroeconomic stability have an impact on total expenditures, exchange rates and asset prices through various monetary transmission mechanisms. Interest rates kept low to stimulate the economy increase the demand for real estate. Macroeconomic indicators should be followed carefully so that real estate prices, which are inflated by the driving force of credit funds, do not reach a level that threatens financial stability. All these events are related to the real estate sector. It is clearly seen that it has effects in the fields of construction, sales, marketing, finance, management etc. In the real estate sector, there are properties for commercial purposes, industrial properties, agricultural properties and special purpose properties as well as residential properties. The pandemic has had different effects on each property type. For example, the demand for shopping centers that include trade, food and beverage, cultural and artistic activities suddenly came to a standstill. In the housing sector, there has been an increased interest in properties with a larger area with gardens or balconies. It is seen that people who have to spend more time in the house revive the real estate sector in terms of renovation and development activities. On the other hand, due to the distance education activity, the rental housing demand of university students has decreased, especially in metropolitan cities. Increasing rental vacancy rates and loss of rent collection negatively affect the return on real estate investments. All these effects may differ on the basis of regions and demographic structure. Therefore, it is very important to analyze the market well in line with the needs of the society. The purpose of this study is to analyze the impact of the Covid-19 process on real estate markets. In this direction, the internal and external dynamics that determine the real estate values will be examined by evaluating the current data on the real estate economy. By examining the changes in consumer behavior for various real estate types, it will be investigated how the real estate sector can be developed using digital opportunities. It is estimated that the new era will be a period in which digitalization, technology, artificial intelligence applications, e-commerce and remote work will prevail. The real estate sector has already entered the transformation process in order to respond to the changing demand in the technology age we are in. With smart building technologies, it is possible to maximize the comfort and safety of users and to save money on energy efficiency. Real estate consultants can serve their customers by taking a virtual tour. In the digital age we are in, people and institutions that closely follow technology and develop innovative solutions compatible with technology will hold onto the market, and those who cannot adapt to the changing structure of demand will not be successful.