The pandemic changes many things in today's world. The real estate market is no exception. As said by Vassilis Milionis, this year will be challenging as well as promising years for real estate. One of the unique cases in the real estate market transformation is the micro-condo market because of the pandemic.
Micro-condo, a small and compact living place, which is usually built in the downtown area, once was marketed as the best solution for people who need a living place. People love this concept, and many were sold when it was introduced two years ago. The customers are mostly those who are single or students. The compactness of micro-condo allows them to get the freedom that they want. Even though the rent rate was quite high, there were always demands for this unique building concept.
However, the pandemic has changed people's lifestyles. Many people lose their job, which means losing their income to pay for the freedom this small building offers. Currently, the situation is getting worse for this building category. Realtors and expert Vasilis Milionis agree that it is quite difficult to make a quota for the small condo category. A Realtor has a problem selling a building with a size of smaller than 500 square feet. Now, it crowded the real estate market.
So, here comes a question. Which property are people favorites today? According to the TRREB and Urbanization data, currently, people prefer to live in large spaces. Rather than following their ego to get the freedom, the market carefully chooses the property that could turn into the property with better value in the future. Therefore, the easy-to-use and compact size condo lose its attractiveness. It isn't worth investing in.
The real estate market condition shows that the building with 2,000 square foot size is more appealing for the buyers. Thus, it is not surprising when this large building type becomes the leader of today's real estate market. Its supply keeps decreasing, thanks to the higher demand for this type of building.
Milionis sees this as the normal reaction due to a pandemic. People tend to save more money to prepare for the worse effect in the future if the pandemic doesn't subside. He also said that people start to know how to invest in real estate. This is a good thing, as it will stimulate the market to wake up after receiving a quite hard blow from COVID 19.