| Journal Volume 14, Special Issue 1, ISSN: 1823-8505 Date: November, 2020 |
| Title: INSTITUTIONAL PROBLEMS OF SPATIAL POLICY DURING THE COVID-19 PANDEMIC: A POLISH CASE |
– by Pawel Mickiewicz and Maciej Nowak
Abstract
The COVID-19 pandemic and its economic consequences have caused several repercussions in various spheres, including real estate management and spatial policy. In Poland, public authorities (the government) was triggered to develop the so-called “Anti-Crisis Shields”, a legal act introducing transitional solutions to various spheres of life. Some provisions also covered the sphere related to spatial policy. Consequently, new dilemmas have arisen regarding the way of applying spatial policy tools in the new situation. The article aims to isolate and evaluate new conditions and dilemmas related to spatial policy tools in the Polish spatial management system. After a brief description of Poland’s spatial management system and its main problems, attention was paid to: (1) the emerging dilemma of what is more important in the conditions of a pandemic: the speed of planning processes or protection of critical values in the spatial management system; (2) new directions of activities related to the use of spatial policy tools, especially in the context of ensuring social distance and more comprehensive health protection; and (3) new conditions for public participation. Based on the analysis, a new direction of spatial policy changes caused by the pandemic crisis was proposed. The investigation covers a new problem of public authorities’ inefficiency during a pandemic. From this perspective, we evaluated the spatial planning legislation introduced during the COVID-19 in detail.
Keywords: COVID-19 pandemic, Poland, spatial management, local spatial plans
INSTITUTIONAL PROBLEMS OF SPATIAL POLICY DURING THE COVID-19 PANDEMIC: A POLISH CASE
| Journal Volume 14, Special Issue 1, ISSN: 1823-8505 Date: November, 2020 |
| Title: THE ROLE OF SERVICE DIGITALISATION IN REALTY BUSINESS DURING PANDEMIC FROM THE PERSPECTIVE OF REAL ESTATE AGENCY IN KLANG VALLEY, MALAYSIA |
– by Nur Azaliah Abu Bakar and Ariffikri Yaacob
Abstract
COVID-19 has caused unprecedented disruption over the last few months, hitting the world with a vengeance in the middle of March. As COVID-19’s effects are felt worldwide, the real estate industry is also affected by the rapid spread of coronavirus affecting global real estate investment as travel, face-to-face meetings and property viewing are restricted. Hence, this caused significant disruption in the business transaction of real estate agencies, including in Malaysia. Therefore, this paper aims to understand how Service Digitalisation solution able to sustain the real estate agency business during this pandemic. This study adopted a Business Model Innovation Model as the foundation. This study selected a case study of real estate agency in Klang Valley, Malaysia and a series of interview sessions were conducted with the principle and the agents. The data were then analysed based on a thematics analysis method. Finding reveals that there are five quick actions taken by this agency in digitalising their real estate services and management process in sustaining their business. These include the in-house development of real estate agency management system and websites, the utilisation of various social media application as a marketing platform, the development of own video content which is localised to Malaysian market segment, the usage of Search Engine Optimisation (SEO) and finally the series of digital competency and capability training given to their registered real estate agent in coping the business disruption, especially during MCO period. Significantly, COVID-19 has expedited this digitalisation process, and it is proven that only the quick adapter in this real estate business will be able to survive in this new norm. Therefore we strongly urged the realty business to quickly embrace the service digitalisation to the whole business operation to remain relevant and sustainable.
Keywords: Real estate, COVID-19, digitalisation, business disruption, sustainability
THE ROLE OF SERVICE DIGITALISATION IN REALTY BUSINESS DURING PANDEMIC FROM THE PERSPECTIVE OF REAL ESTATE AGENCY IN KLANG VALLEY, MALAYSIA
| Journal Volume 14, Special Issue 1, ISSN: 1823-8505 Date: November, 2020 |
| Title: BUSINESS CONTINUITY PLANNING FOR CONDOMINIUM MANAGING AGENTS IN SRI LANKA: RESILIENCE DURING PANDEMICS |
– by Sanduni Peiris and Nayanthara De Silva
Abstract
Business Continuity (BC) of condominiums is being greatly affected by the COVID-19 pandemic. The pandemic is highly contagious, imposing a huge risk on community-based environments in which residents share different common facilities such as lifts, recreational areas, swimming pools, gyms. Besides, the apartments are mostly used as closed units without a solid connection with the environment. Such settings may heavily contribute in spreading any contagious disease, justifying the strict care extremely demanded at residentials. As the caretaker, the Facilities Management (FM) service provider, also known as the Managing Agent (MA) must continue its operations while facing the pandemic with a huge risk. Rather than being reactive towards the emerging struggles, it is more effective to have a proactive approach in combatting a pandemic. Business Continuity Planning (BCP) allows an organisation to be equipped with all mandatory plans and strategies which can be implemented before the pandemic strikes. Hence, this paper proposes a Pandemic BCP model for MAs which can be utilized for the on-going COVID-19 and future pandemics. Data were gathered using literature, expert interviews, site observations and document review. It was observed that none of the organisations had BC plans prepared for a pandemic. However, most experts admitted the importance of BCP in this context. They mentioned that the remote working culture already established in MAs, heavily contributed in adapting to the situation. Further, satisfactory accommodation facilities provided for the on-site staff was witnessed during the site observations. The documents review revealed the comprehensiveness of prompt action taken by MAs to resume operation of the critical functions. The proposed model consists of six stages and the paper discusses the factors to be considered under each stage of the model. MAs can utilize this plan effectively in adapting to the current and future pandemics to ensure solid BC.
Keywords: Business continuity planning, pandemics, condominiums, managing agent
| Journal Volume 14, Special Issue 1, ISSN: 1823-8505 Date: November, 2020 |
| Title: BEYOND RECOVERY? DOWNTURNS, IMPLICATIONS AND PROSPECTS OF COVID-19 PANDEMIC TO REAL ESTATE DEVELOPMENT IN ZIMBABWE |
– by Kelvin Zhanda
Abstract
Real estate development plays a pivotal role in the growth of macro economies worldwide. Until recently there has been little, if any, concern over the impact of public health emergencies to real estate development process let alone recoupling mechanisms for Zimbabwe’s real estate developers. Many changes have occurred to real estate development amid the ongoing COVID-19 pandemic and economic instability that has impacted the already struggling real estate development sector in Zimbabwe. Thus, this paper aims to examine the implications of COVID-19 pandemic to real estate development and its prospects for recovery in Zimbabwe. The paper focuses on the implications of COVID-19 to the four forms of real estate development namely: new developments, repurposing, refurbishment, and redevelopment. The study employed a desktop study and survey of selected real estate developers as well as content analysis methodology. Evidence in Zimbabwe shows that many new developments have almost stopped and some will hold back for an indefinite time. The real estate development industry is largely based on revenue accrued from the real estate projects’ proceeds and funding from banks. Thus, the study seeks to answer questions of the nature: will the financial institutions continue to offer financial help to real estate developers? What will be the legal wrangles of missing the projects’ delivery dates by developers? While the key players in the real estate development process have seized the pandemic as an opportunity to demolish and refurbish the buildings, some real estate developers are halting projects citing revenue challenges. The paper indicates how the current COVID-19 pandemic may affect the real estate developers’ future “appetite” and determine the future of real estate development. The paper, therefore, builds the basis for future real estate development policies and indicates the need for reforms to shield the sector from pandemic shocks.
Keywords: COVID-19, property developers, real estate development, Zimbabwe
| Journal Volume 14, Special Issue 1, ISSN: 1823-8505 Date: November, 2020 |
| Title: IMPACTS AND RISK MANAGEMENT OF COVID-19 PANDEMIC ON REAL ESTATE SUPPLY CHAIN |
– by Ikechukwu Uchehara, Mansur Hamma-adama, Kwadwo Ayeh Obiri, Naeimeh Jafarifar and David Moore
Abstract
Industry experts internationally have raised concerns regarding the significant risk posed to the real estate sector by the unprecedented global pandemic of Covid-19. The influence of Covid-19 has been swift, and with emerging wide-ranging consequences. The stay-at-home-policy has stagnated real estate and other economic activities. Many lenders, buyers and estate agents are evaluating the threats and opportunities in their operations. Developers face stoppages resulting from the impact and inherent risks of the stay-at-home policies on the built environment, and real estate chain. Return on investments initiated, but not completed due to the pandemic negative effect has resulted in a financial crisis. Similarly, there are fears that income streams, such as rental incomes, and mortgage payments, which are already being affected negatively in the short-term may worsen in the long-term due to economic recession. The purpose of the study, therefore, is to identify any COVID-19 pandemic impact, its mitigation for the tenant, and across the supply chain within the real estate sector in the United Kingdom. The study is based on a qualitative descriptive research design. The required data has been collected mainly through an extensive review of the available secondary sources. Occupiers’ Sentiment Index and past recessionary financial performance were used to provide a wide-ranging insight into crisis effects on the macroeconomy of the property market. Consequently, two procedural approaches are utilised; firstly, the economic recovery scenario V, U, W and L shapes, are analysed to determine the potential recovery pattern of supply chains across the real estate sector. Secondly, the use of a legal context to mitigate the pandemic risk across the sector. The findings reveal an emerging dynamic trend, rooted in contract clause revamping, as suggestive of a mitigation approach by the industry. The significance of the study provides a robust platform on which a long-term response to any future unprecedented pandemic within the real estate-built environment can be delivered.
Keywords: Built environment, COVID-19, real estate, pandemic, risk management
IMPACTS AND RISK MANAGEMENT OF COVID-19 PANDEMIC ON REAL ESTATE SUPPLY CHAIN
| Journal Volume 14, Special Issue 1, ISSN: 1823-8505 Date: November, 2020 |
| Title: RISK SHIFT OF REAL ESTATE STOCKS DURING THE COVID-19 PANDEMIC |
– by Jianan He, Kerstin Hennig, Elmar Lang and Nils Neukranz
Abstract
The outbreak of the COVID-19 pandemic induces an increase of risk in global equity markets where real estate stocks are often perceived as a ‘safe haven’. Employing the Fama and French’s (2015) five-factor model, we calculate the betas for risk factors and investigate the influence of market crises on excess returns of real estate stocks. The time series used in this study allows for splitting the data into two crisis periods namely the global financial crisis during 2007-2008 and the COVID-19 crisis in 2020. Our empirical evidence underlines that the undifferentiated view of real estate stocks as an overall ‘safe haven’ is not supported: 1) We find the risk factors of Fama and French can be applied to real estate stocks only to some extent, where the investment and profitability factors show opposite signs compared to general stocks; 2) Regional differences exist and Asian real estate markets show stronger diversification benefits during the crises; 3) Differences in business scopes lead to distinct reactions to the crises, where Asian firms focusing on real estate development and diversified activities are proven stronger during the COVID-19 pandemic and thus may offer better diversification value for investors; and 4) European real estate stocks are the worst-performing in terms of annualized return, specifically for firms offering real estate development and diversified activities. During both crisis periods, operating and services firms suffer a significant negative impact in Europe and are less likely to have diversification value.
Keywords: Real estate stocks, risk and return, Fama & French’s (2015) five-factor model
RISK SHIFT OF REAL ESTATE STOCKS DURING THE COVID-19 PANDEMIC
| Journal Volume 14, Special Issue 1, ISSN: 1823-8505 Date: November, 2020 |
| Title: RE-DESIGNING THE BUILT ENVIRONMENT AS A STRATEGIC TOOL FOR ANTICIPATING EMERGENCY SITUATIONS: THE GREEK STRATEGY FOR DEALING WITH COVID-19 CRISIS |
– by Kalliopi Papadaki, Sofia Karma, Konstantina Siountri, Maria Siti, Avgi Vassi and Efthimios Bakogiannis
Abstract
In recent years, there has been an exponential increase of hazards that may threat humanity in a global basis – depicting the correlation of climate crisis with the frequency and intensity of large-scale natural disasters recorded worldwide, like mega-fires, floods and hurricanes, with social, economic and environmental devastating consequences. However, apart from the aforementioned natural disasters and any possible technological hazards, humanity was recently threatened by the COVID-19 pandemic, facing the most challenging sanitary crisis of the latest years. Cities on a global scale need to adapt directly to the new extraordinary conditions, in order to meet the various challenges and minimize losses. The sudden and severe crisis of COVID-19 pandemic has highlighted the need for rapid adaptive measures in order to increase societies’ coping capacity and strengthen urban resilience. In this paper, planning and re-designing of the existing built environment is proposed as a tool for anticipating a number of emergency situations that may arise in urban areas, including epidemic crises, whereby the case study presented concerns on Athens Metropolitan Area (AMA), in Greece. In this context, a number of pilot interventions have been proposed for the built environment in order to combat COVID-19 spreading, such as pop-up bike lanes, or pedestrian movement pathways, under the perspective of using less mass transportation means, supporting the “green transportation” of citizens, fostering well-being, securing undisrupted mobility of the supply chain, etc. All the above interventions could be seen as proposed good practices for cities’ adaption to extreme conditions, tailor-made to their specific needs. However, the challenge that remains is how to easily apply measures that could be proven useful in any type of emergencies in ensuring sustainable urban resilience, e.g. use a pop-up bike lane initially designed to anticipate a lockdown, as an emergency lane for ambulances in case that a mass casualty earthquake strikes, among others.
Keywords: Built environment, crisis management, COVID-19, active mobility, urban resilience
| Journal Volume 14, Special Issue 1, ISSN: 1823-8505 Date: November, 2020 |
| Title: APPLICATIONS OF DRONE TECHNOLOGY IN THE MANAGEMENT OF DISASTER AND RISK ASSOCIATED WITH COVID-19 PANDEMIC IN THE BUILT ENVIRONMENT: THE NIGERIAN EXPERIENCE |
– by Akeem Bolaji Wahab
Abstract
The world has of recent being faced by the effects and challenges of the COVID-19 pandemic and it has had major tolls on the conditions of living, the live expectancy of building occupants, and thus affecting their expected contributions to the national economy. To provide adequate services and measures to fight the pandemic, various institutional measures are evolving daily across the globe. Amidst the measures initiated by both governmental and non-governmental formations are the provisions of medical services and the decontamination of infected buildings and areas occupied by people in order to fight the pandemic amongst the populace. However, the inability to plan, remoteness, and accessibility challenges of buildings and settlements in major parts of the country has made the delivery of relief materials, fumigation of buildings, and the rendering of other services associated with the management of both disaster and risk linked to the COVID-19 difficult. This paper, therefore, focuses on the emerging intervention initiated by an Imperial Majesty in Nigeria, the Ooni of Ile-Ife, Osun State through the adoption and supply of drones to states across the country to decontaminate likely contaminated or uncontaminated buildings and settlements occupied by people. Given the enormous benefits derivable from the adoption of the use of drone technology in the management of disaster-related issues in the built environment in the country, this paper recommends that its use should be vigorously deepened, being an emerging intervention or device through appropriate institutional supports to complement efforts of stakeholders in making the country’s built environment safe and healthy for all.
Keywords: Environment, buildings, occupants, disaster management, drone
| Journal Volume 14, Special Issue 1, ISSN: 1823-8505 Date: November, 2020 |
| Title: REAL ESTATE APPRAISAL IN THE AFTERMATH OF THE CORONAVIRUS PANDEMIC |
– by Tom Kauko
Abstract
In February 2020, the coronavirus (COVID-19) begun to roll over the globe. Suddenly, some true resilience leadership – or at least, decisiveness – was needed from individual citizens and businesses. The crisis conditions also forced some sectors and industries to be innovative, in search for solutions. This contribution speculates about the future of real estate appraisal, and the extent it is being affected by the crisis. The implications of the ongoing and future virus crises for real estate appraisal are examined using the concept of risk, and, in doing so, a potential methodological innovation based on subjective risk analysis of real estate investments is argued for. The consequences are likely to fit in the space between the extreme scenarios: that nothing will change, and that all with change. So, we do not believe that the distribution of rental incomes and property values will be the same as before, but we also do not buy the claim of some kind of end of real estate. Instead, what seems plausible is to approach the issue by establishing the risk; that is to say, how the real estate industry is reacting to an inevitable resetting of the businesses of the tenants, based on how adaptable the industry and sector is. The findings of the conceptual analysis highlight the potentially changing context of real estate appraisal in terms of localization of economic and social activity; preferences for distance practices and private sector activities; and implications for investment risk.
Keywords: COVID-19, crisis, real estate appraisal, risk, coronavirus
REAL ESTATE APPRAISAL IN THE AFTERMATH OF THE CORONAVIRUS PANDEMIC
| Journal Volume 14, Special Issue 1, ISSN: 1823-8505 Date: November, 2020 |
| Title: COVID-19 AND DIGITALIZATION: ITS INFLUENCE IN THE DUTCH REAL ESTATE MARKET PROCESS |
– by Jan Veuger
Abstract
COVID-19, disruption in society and real estate – which clearly bear characteristics of this era – and the user will have an impact on real estate. Disruptive real estate organizations clearly respond to the agility and modularity of the built environment and therefore determine the right of existence of real estate organizations. This also influences the current and future financial and functional valuation of real estate. The added value of the possible applications of digitalization of real estate processes is expressed in agility, modularity, more effective and efficient transactions, increasing transparency and a better basis for investments. This will increase confidence in fundamental parts of the real estate economy. In recent months, COVID-19 has held sway over the Netherlands and almost everywhere else in the world. Although COVID-19 began making its way through Asia in January, the Netherlands and Europe were surprised by it. The intelligent lockdown, announced in the third week of 2020 and later lifted, has now become a partial lockdown again in October 2020. This has a major impact on people’s daily lives: how people live, how they work, how they shop and get groceries. Things like ‘place’ and ‘connection’ suddenly take on a whole new meaning. This has meant quite a lot for real estate. Considering the fact that COVID-19 will be present in many ways as long as no vaccination or effective medicine is available, COVID-19, as well as digitalization, will have considerable consequences for real estate, urban development and building production. The methodology is based on literature review of papers from the recently written collection of essays RICS Research & Innovation (Kok et al., 2020) in which the experts, based on current knowledge, research and insights, present a picture of what COVID-19 means for our real estate and urban development. In the following sections, we present a number of important insights and conclusions as well as a number of current research developments. These insights and conclusions are: (1) the Unique Object Identifier (UOI) respects existing identifiers and connects them, (2) COVID-19 can also stimulate the integration of technology in real estate, and (3) urban strategy foresees a future of networked regions.
Keywords: COVID-19, digitalization, research, innovation
COVID-19 AND DIGITALIZATION: ITS INFLUENCE IN THE DUTCH REAL ESTATE MARKET PROCESS
| Journal Volume 14, Special Issue 1, ISSN: 1823-8505 Date: November, 2020 |
| Title: A CONCEPTUAL FRAMEWORK FOR MANAGING CONSTRUCTION CLAIMS IN THE FACE OF THE COVID-19 PANDEMIC IN NIGERIA |
– by Christian Fidelis Asuquo, Itoro Ernest Udo and Monday Otali
Abstract
Claims are inevitable and have become an indispensable part of modern construction. The complexities, risks and uncertainties surrounding construction business environment often lead to unforeseen circumstances which disrupt the progress of works and give rise to contractual claims. One of such unexpected events presently causing disruption for construction contractors is the coronavirus or COVID-19 pandemic, which is exerting a significant but unprecedented impact on the delivery of construction projects, resulting in delays and additional costs for contractors, suspension of works and a disruption of the construction supply chain. Due to its novelty, the COVID-19 pandemic has presented a distinctive challenge for construction claims management. Therefore, if construction project parties are to prevent claims from escalating into dispute, it is imperative that the claims arising from construction contracts, as a result of the COVID-19 pandemic, are effectively managed. This study therefore examined the deficiencies of existing construction claims management process with a view to providing a conceptual framework for more effective management of claims that may arise as a result of the COVID-19 pandemic in Nigeria. Questionnaire responses were received from 162 construction small, medium and large contractors in Akwa Ibom State, Nigeria. The result indicates that failure to interpret contract terms is the most significant deficiency in contractual claims management process. Other important deficiencies in the claim management process include contractors’ inability to recognise claims events, failure to establish legal and factual grounds and poor records or documentation to support claims. With this, a conceptual framework for effective management of claims in the face of the COVID-19 pandemic was developed for use by contractors.
Keywords: Claims, contractors, COVID-19 pandemic, management, Nigeria
| Journal Volume 14, Special Issue 1, ISSN: 1823-8505 Date: November, 2020 |
| Title: THE IMPACT OF COVID-19 ON REAL ESTATE TRANSACTION IN LAGOS, NIGERIA |
– by Joseph Oyewale Oyedeji
Abstract
Global lockdown of all economic activities due to the COVID-19 pandemic have a consequential impact on all aspects of the economy including real estate. This assertion necessitates the need to evaluate the impact of the pandemic on real estate transactions in Nigeria commercial capital. This study assessed real estate transactions in Lagos during COVID-19 pandemic. The specific objectives of the study were: to examine real estate supply, demand and real estate transaction sale and rental value in the study area. Also, the study examined rate of real estate transactions and problems of real estate transactions during the COVID-19 pandemic. The study populations for the study are the Estate Surveying and Valuation firms in the study area. Data were gathered through questionnaires administered to the respondents. Data gathered were analyzed using descriptive statistics such as: frequency distribution table, relative importance index and ranking. Findings from the study revealed that warehouses (industrial properties) are the class of property that is most readily available for occupation and demand with indexes (RII) of 4.184 and 4.382 respectively. Warehouses have the highest sale and rental value during this period with a RII of 4.204 and 4.211 respectively. Majority of the respondents (77.632%) revealed that real estate transactions were relatively static in comparison to the period before the pandemic. The most predominant real estate transaction problem in the study area is bank transaction related problem with a RII of 4.211. Recommendations were made on how to alleviate the identified problems in time of similar pandemic in the future.
Keywords: Real estate, COVID-19, transaction, property market, Nigeria
THE IMPACT OF COVID-19 ON REAL ESTATE TRANSACTION IN LAGOS, NIGERIA