Coronavirus and real estate: the most affected segments
We have already dealt with several times the discourse linked to the cause - effect process between Coronavirus and the real estate crisis. After generally outlining what the conditions are in the world real estate market, and what the potential ways of renewing the sector are, today we will analyze real estate on a segmented logic. So what is meant by segment? Reference is made to single portions of the market, characterized by homogeneity.
In our case, therefore, the segments are simply all possible variations of real estate. Which are the segments, and therefore the sectors, most affected? Let's find out together, in the next few lines of our mini guide!
First of all, the main risk that affects the entire world real estate system is not the actual one, but the perceived one. This therefore means that it is not so much the emergency situation that alters the trend of the real estate market, but the perception of it, and therefore the consequent insecurity of the investment. The crisis is therefore a sort of catalyst for the most stressful situations. On the other hand, investors are increasingly hesitant towards a future that looks uncertain.
Starting from this assumption, let's analyze in detail what will happen to the various real estate segments.
As regards the rental sector, a real acceleration is assumed. The probability of this happening is very high. This is because a lease has always been decidedly more flexible and less demanding than a classic sale contract. And this is precisely what the potential investor needs. The residence is seen as a refuge, therefore, having the ability to change it according to your needs, is basic. Both as a structure but also as a location.
But if this is the perspective that most customers will fall into, we must not forget the necessary exceptions. Paradoxically, for the same reason, a market share could opt for purchase and sale contracts. The purchase is seen as a fixed point, a certainty.
But between the two sectors, the crisis seems closer to the buying and selling market.
After understanding that the sales contracts will be the most affected, let's move on to non-residential. Smart working has represented a real revolution in many countries.
Many companies have moved part of their offices to the homes of individuals. But it is expected that, for both organizational and above all financial reasons, this new working layout will be totally absorbed. The office sector will therefore also experience a significant collapse. The only solution that can be contemplated to remedy this crisis is to redesign the working or co-working environments. But we know that it is not so easy to move from theory to practice.
Even the retail sector would seem to be hit hard. Most of the commercial activities will enhance the e-commerce system, almost completely abandoning the places where it is physically possible to buy.
It is hoped that these forecasts can be disrupted, by overcoming the crisis as quickly as possible, accompanied by a real estate revolution!
In our case, therefore, the segments are simply all possible variations of real estate. Which are the segments, and therefore the sectors, most affected? Let's find out together, in the next few lines of our mini guide!
First of all, the main risk that affects the entire world real estate system is not the actual one, but the perceived one. This therefore means that it is not so much the emergency situation that alters the trend of the real estate market, but the perception of it, and therefore the consequent insecurity of the investment. The crisis is therefore a sort of catalyst for the most stressful situations. On the other hand, investors are increasingly hesitant towards a future that looks uncertain.
Starting from this assumption, let's analyze in detail what will happen to the various real estate segments.
As regards the rental sector, a real acceleration is assumed. The probability of this happening is very high. This is because a lease has always been decidedly more flexible and less demanding than a classic sale contract. And this is precisely what the potential investor needs. The residence is seen as a refuge, therefore, having the ability to change it according to your needs, is basic. Both as a structure but also as a location.
But if this is the perspective that most customers will fall into, we must not forget the necessary exceptions. Paradoxically, for the same reason, a market share could opt for purchase and sale contracts. The purchase is seen as a fixed point, a certainty.
But between the two sectors, the crisis seems closer to the buying and selling market.
After understanding that the sales contracts will be the most affected, let's move on to non-residential. Smart working has represented a real revolution in many countries.
Many companies have moved part of their offices to the homes of individuals. But it is expected that, for both organizational and above all financial reasons, this new working layout will be totally absorbed. The office sector will therefore also experience a significant collapse. The only solution that can be contemplated to remedy this crisis is to redesign the working or co-working environments. But we know that it is not so easy to move from theory to practice.
Even the retail sector would seem to be hit hard. Most of the commercial activities will enhance the e-commerce system, almost completely abandoning the places where it is physically possible to buy.
It is hoped that these forecasts can be disrupted, by overcoming the crisis as quickly as possible, accompanied by a real estate revolution!
