What Will a Post-Pandemic Property Market Look Like?

Cities Return to a New Normal

The property market is constantly changing. If you are an investor wondering what the property market will look like post-pandemic, you are not alone. Life is beginning to bounce back to a pre-pandemic world. City centres are opening back up and many professionals are returning to the office. However, the way people choose to live and work has shifted massively. As a result, this has created some interesting trends in the property market. Buyer trends are evolving, leaving many investors questioning what their next property move will be.

The pandemic has had a huge impact on city centres. During lockdown, they became deserted. The rise of remote working meant professionals moved out of city centres in search of more space. Especially in the peak of lockdown, those living alone in high-rise flats, with no gardens, felt the impact of lockdown much more.

However, we are currently entering a ‘new normal’. Some workers are beginning to return to city centre life. Savills Hybrid Working Index gave a close examination of what the future of hybrid working could look like. Locations with larger homes, longer commutes, and faster broadband speeds could make the shift to hybrid working quicker. With hybrid working here to stay, buyers are putting greater importance on the idea of a ‘home’. In particular, having a suitable workspace.

Having spent the majority of the last year inside, buyers are realising the importance of having a ‘home’. For property investors, it’s worth considering a property with ample space, indoor and outdoor. For buy-to-let landlords, furnishing your property is a great way to turn it into a ‘home’. Having a well-furnished property will boost tenant appeal and help let our your property for the highest rentals and limit void periods.

CityRise Verdict

To conclude, the property market has faced some huge shifts. In the peak of lockdown, many city centres became ghost towns. This caused a huge boost to housing demand – in particular, demand for more space. As a result, demand was lowered in some major cities. The Savills report unpacks that we are beginning to enter a post-pandemic world. Workers are beginning to return back to the office. Therefore, demand is rising in city centres once again. However, demand is still extremely strong in suburban areas. The millennial generation, the prime rental demographic, are entering their 30-40s. Therefore, millennial demand is rising in suburban areas. Suburban areas offer more ‘family-friendly’ properties. Also, with the rise of hybrid working, tenants are still hoping to be a commutable distance away from work. Therefore, commuter towns offer the perfect alternative.

Most notably, the Savills report revealed that Manchester and Birmingham are leading the way in terms of residents travelling within the city. Therefore, we can expect tenant demand to remain high in these cities. As we know, Manchester and Birmingham present two very strong property investment markets. In a post-pandemic property market, these cities will continue to lead the way.

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