How will the coronavirus change the premium real estate market?
Since mid March we all live in a world ruled by the coronavirus. How will it affect the situation on the real estate market? Read on to find out what are my thoughts on the future.
It was to be expected that sooner or later will happen something that we are all unprepared for. And although new viruses appear pretty regularly on the epidemic map of the world, this one hast taken us all by surprise and in less than few weeks changed the rules of the game.
Now, the world brainboxes are wondering what should be done next in order to ensure a safe landing for the world economy. I think we all agree that the economy will suffer the most. And so, I decided to take a closer look at the premium real estate market and take a guess at our future in the next 6 months.
We know that we know nothing?
Well, not really. The new virus is a mystery to us in many ways but the sitution – that is a pandemy – did happen in the past. The history teaches us that time like that won’t last forever. Even the pest in the Middle Ages did come to an end at some point. And afterwards the world was getting back on track.
From the economy point of view the next 6 to 18 months will not be a bed of roses. In fact, we may expect a few painful thorns on the way. Different businesses are already short of breath – many companies fear what the future will bring to them and to their employees, whereas governments launch anti-crisis programmes. However, premium real estate is a completely different story.
Business as usual on the property market?
In my business, after a short stoppage when the number of inquiries and meetings fell steeply, it is all slowly getting back to normal. The reason for that may be that people who want to buy premium real estate are usually well-off and have easy access to cash. In addition, difficult times favour tough price negotiations. Last but not least, any property (and especially premium real estate) is a great investment opportunity regardless of everything, since in the long term it is resistant to any crisis.
On the rental market the situation is slighthly different. Usually that kind of property is sought after by large multinational companies for their expats and right now all international management transfers have been brought to a halt. However, I am convinced that, once the normality is reestablished, the market will react positively.
