The way we do business will change
The COVID-19 pandemic has left the signing of many real estate operations in the air, paralysed the market for offices and retail and has stagnated the day to day management of investment funds that were considering new purchases in Spain. Everyone is on their toes faced with the uncertainty of what will happen after the state of alarm, and how the Coronavirus crisis will affect the Spanish real estate market.
Our way of conducting business will change dramatically given this world crisis. We are now moving towards a future that uses technology to enhance our work, make us more efficient and brings us closer together, without meeting face to face. We have already been using technology and integrating it into the real estate business, especially developers using virtual tours for clients to view their future built home. This is going to grow at lightning speed and enable cross border operations, without limitation in space, distance and time. The technology is already there, smart contracts are in place to take a deal from viewing to full completion without physically having to be present. Now it is a question of implementing it and making it a way of conducting business. Working remotely will become a way of life, allowing people the ability to combine work and quality family time, which has been neglected in the past. Technology will help us move forward and get back to our basic needs and what is important. This crisis has reminded us of what is important.
Real estate agencies expect a short to medium term recovery
The main real estate companies have taken advantage of the health crisis to plan how they will deal with the coming months after the halt. The impact of the Coronavirus will depend on the length of the quarantine and the limitation of movement of international buyers. However, we expect the impact on the medium and high segment of the real estate market to be short to medium term. Due to the fall in the financial markets and the unprecedented drop in interest rates, we are convinced that the real estate sector will continue to be one of the most interesting assets for investors.