Like most other business sectors, the real estate industry is experiencing quite a tough time due because of the novel coronavirus outbreak. Companies are discharging their employees under special situation regulation. Even startups, which are backed with millions and billions of investments, are struggling to cope with the situation.
From the start of the current month, the world has seen economic fallout, which can be easily detected by the 30% decline in the stock market. This rate is even bigger for the real estate industry, estimated around 50%. Reckoning the fact, it can be comprehended that the business industry has come to a standstill.
As a result, the companies are lying off 15% of their employees as well as are cutting 20% salary off the existing workforce. Though some companies are ensuring the discharged employees a fair dismissal allowance and health insurance facility, it is still unfortunate to become unemployed in the middle of the year.
Some companies are not just reducing their staffs, but they are limiting their offers and canceling all expansion plans also. They are halting providing services in certain provinces and implemented emergency regulations to keep people inside their homes. Companies like Opendoor and Redefin have stopped buying more houses, and they have also support lying off employees. Though the situation is really grave for the industry, it is still hoping to be revived in the next 100 days. With China helping the world recover from corona, the industry is counting its days to flourish again.