REAL ESTATE SECTOR, RENT AND COVID 19

How to adapt real estate leasing to the needs of the new normality:

Specialists in different areas have created strategies to mitigate the effects that the pandemic has caused in the financial sector.
In the case of our sector, Real Estate, we highlight that the market offers solid opportunities, as far as real estate rental is concerned, since 90% of new properties are dedicated to sale and only 10% to rent.

For this reason, we propose 2 tactics, so that the owners generate empathy with their tenants, while in this way they conserve and ensure their income:

-Reasonable agreements for deferment, forgiveness or deferred payments.

Each tenant and each tenant have unique conditions, so it would be appropriate to prepare a letter of commitment signed by both parties, in which the date and specifications of the agreement are established.

-Keep promoting properties

If the property is not being occupied, it is recommended, launch a discount on your offers so that potential tenants can make the decision more quickly.

MARKET EVOLUTION

“The time it will take to return to normal will determine the evolution of the sector.”

Three situations arise:

V Evolution,

raises the transitory stop that we have lived, just one quarter. The variables of the sector, such as the sale, mortgage signing and works will recover quickly.
This is a completely different situation from 2008 and is associated with pandemic crises.

U Evolución,

it is considered whether the state of alarm had been prolonged due to the need for more time for the health management of the crisis. In this case, the purchase of homes, and the signing of mortgages, would have been exposed to the recovery of employment, and the upward trend would have been later, as it happened in 2014.

Evolución en L,

the most pessimistic situation, would occur if we entered a recession, and employment fell sharply, due to the economic slowdown, worldwide. The sale of houses could fall by 80%, due to the lack of buyers, although the offer would be maintained, since a part of the owners would need to sell their properties. For its part, the new construction would be awaiting financing.

Despite all these possible situations, some voices of experts in the sector have been optimistic about the role of real estate in the economic recovery, since it may be one of the locomotives that takes the country forward, since tourism will take longer to recuperate.