On March 17th, around 10% of Parisians fled the French capital city to spend the lockdown period elsewhere in France. Online shopping, remote work and less crowded areas seem to win consumers favor in times of sanitary crisis. Have they passed the point of no return ?
With the residential sector and home-working model benefitting from the global pandemic, development projects are increasingly emerging as a credible investment opportunity. In fact, some segments within the real estate space may come out of this pandemic stronger and bolder.
Ever since the notorious Corona virus has started to impact our lives, home owners have moved to ask for mortgage relief. This has led to property owners in the UK, Italy, Spain and the Nordic region being granted so-called mortgage holidays, ranging from between three to 18 months of suspended payments. Meanwhile, tenants and retailers are also demanding rent suspensions. There is no doubt COVID-19 is severely disrupting the property market, with established revenue streams coming to an abrupt halt.
There is currently more than $2 trillion in dry powder available on the global property market, paired with a strong and timely stimulus on the economy from a range of government and a global pre-crisis economic situation that was stronger than the one that set the context of the 2008 Global Financial crisis. The severity of Corona and its impact on the Real Estate world differs widely per asset class, according to major actors of the sector, according to Nora Creedon from Goldman Sachs.