The pandemic COVID-19 has severely affected the global economy. Everyone is fighting against this deadly virus, and it results in a huge crisis in the economic, financial, health, and social departments of every country. The governments are responding differently because everyone is trying to get rid of the crisis and improve the condition of the country.
But not everyone is facing a similar problem. Developed countries have balanced everything, and they are managing well to fight the Coronavirus. The Caribbean real estate is experiencing big trade-offs, and it is planning to use its resources in a good way to fight the crisis. Now, the scenario is quite different at the beginning and end of this year.
Caribbean Escape can help you get your dream house at an affordable price, even in the pandemic phase. In the following write-up, we will discuss some of the possible impacts of COVID-19 on Caribbean real estate.
Before investing your money, you should know how this island is responding to various impacts. The fighting tendency against the pandemic is quite outstanding on this island. Let us start discussing the impacts to get a better idea.
1. Impact on the Economic Growth
At the beginning of 2020, the GDP growth rate is estimated that it will go up from 1.6% to 2.3% from January 2020 to 2021. But after the arrival of the pandemic, everything gets changed. LAC countries impact the growth of GDP, and now, it is difficult for the country to manage everything.
After COVID-19, it is estimated that the GDP has fallen to -9.4%, but in 2021, it will grow to 3.7%. Due to the constant development, the country will manage to grow even in its tough times. Till mid of 2020, it was quite difficult to cope with the condition because nothing happened due to lockdown.
But after mid of 2020, the country starts working, and hence, the affected economic growth will improve. There is a huge impact on productivity because, in all workplaces, it is important to maintain hygiene and safety measures.
It is important to manage the infection rate in the country. It is found that the price of the fuel remains the same, but all the non-fuel commodities will be charged high. The presence of tourists also reduced, which affects economic growth and real estate.
2. Impact on Real Estate Companies and End-users
All the expansion plans of the Caribbean real estate industry become stagnant due to the pandemic. The property’s price falls because there are no tourists, and no one wants to relocate to it. After a pandemic, it is found that there is a sudden revenue disruption, which is a result of reduced demand.
The global market is severely affected due to lockdown. There is so much restriction on traveling, and hence, no tourists are present here. When all the things get back, there will be a huge scope of buying or renting the country’s real estate.
Many business operations are continuously conducting, which enhances the demand for workspaces, health, and other digital solution centers. Many firms are planning to support remote working, which allows corporates to get ready with risk mitigation techniques. It requires high investment, health-focusing centers, etc.
3. Simplifying Fiscal Burdens
The burden on the shoulders of the occupiers is aimed to reduce. Many global companies are planning to provide fiscal support and extend their services in all the real estate policies. A 120-day moratorium is introduced by the US’s Federal government that helps in providing loans on housing.
Many constructions begin including various medical facilities at the local as well as state level. Many property owners have extended discounts on rents in many regions and provide rebates to people. All the commercial property holders are asking for rent of about six months. Due to late payments, many construction projects are stopped. It will restart again after the pandemic.
4. Impact on Employment
As many construction projects are delayed to next year, there is a huge impact on employment. People with no jobs are suffering from poverty and hence, are hardly managing their food and necessities. It is found that there is a huge increase in child labor because many vulnerable families are quite pressurized.
As per the estimation, the rate of poverty will surely increase due to the pandemic. There is no denying that there is a huge loss in income, and it will increase poverty by the end of 2020. The overall growth of the country also gets affected due to poverty and low employment. People who are employed in small or medium companies have more risk in their jobs.
Due to sudden and temporary shut-down in offices leads to a sudden decrease in the productivity, sales, and other major outputs of the company.
There is a huge risk of bankruptcies in the country because people are taking a loan to improve their business, but nothing well is happening to them. Due to the pandemic, employment is severely affected, and hence, the company’s economic growth is also affected badly.
The Bottom Line
There is no denying the fact that the COVID-19 pandemic has affected the whole world severely. Many sectors, like finance, health, real estate, etc., are shattered. The Caribbean islands exist due to their tourists, but there is a restriction on traveling from one location to another after the pandemic.
In many years, people visit islands and enjoy the peaceful atmosphere in beautiful properties. Now, there is no renting and buying a property in Caribbean places. The infrastructure also slows down, which is also a big drawback of the pandemic.
Currently, many people are hardly managing their food to survive. In 2021, there is a huge decrease in the GDP, and hence, it will severely affect economic growth.
With time, many new changes and amendments are required to improve the state of the country. Getting back to the same place requires the time and effort of people. All the impacts, as mentioned earlier, will get vanished soon.