In: Economics
Consider Emaar Properties or a similar real estate development company located in the United Arab Emirates. Discuss how the market forces of supply and demand affect a real estate development company and what possible shifters are present in this industry. Further, discuss how elasticities and forecasting are affected for the company and industry. Consider this case during normal market circumstances as well as the current market crisis of COVID-19 or previous market crises. Finally, provide a recommendation on how and what the company should do when faced with a market crisis.
Some of the factors that influence housing demand include lower interest rates or borrowing costs. If there are more buyers in the market the demand for housing increases and if there is a limited supply of housing inventory that makes people in a low interest rate environment want to purchase even more.
Covid 19 has tremendous repurcussions on the housing market. As the number of covid cases has been increased people are afraid to go out and purchase the housing development. As corona virus news continues to dominate the headlines and everyone looks to take social distancing very seriously, buying and selling a home the traditional way with the guides is now out of the way. .
I strongly recommend to conduct business from their homes. They can show the mock up apartments/houses/flats through videocall and if the person or the customer is genuinely interested to buy or looking out for an investment in the future it doesnt matter what the situation is.If the customer has any other requirement to see the detailing of the housing, the concerned representative can make him view the same according to his need. The payment or the advance for the housing can be made via bank transfer. Its not important or mandatory to view the housing before the customer buys. If the sales representative can convince the customer he or she is a good sales person and can achieve more sales.
Its not important that the sales representatives has to go office and do business, If the sales representatives is well confident about the product and could explain everything in detail no matter what the situation is, the deal can be closed.