We all agree: we are living in unprecedented times.In such a crisis situation, there are two possible stances to take:
The pessimist and the optimist.
The pessimist is dangerous in that he does not leave any space for hope, however the optimistic does not recognize the problem to its full extent, incapable of solving the situation.
These days, we have plenty of time to consider both opinions for each stance, and behind the analysis, each can come to their own conclusions.I will not talk about the health consequences. It is highly likely that we all know cases, whether they be to people close or far to us, or it could even be ourselves. The health workers of our countries are teaching us immense gratitude as a community, and we can never thank them enough. Thank you.Economically, it is clear that if the wheel does not keep spinning, every day that passes, will make rebuilding once this is over more difficult.We can make some decisions ourselves, however unfortunately there are those whose personal and professional lives may well lay in the hands of politicians.

WILL WE SELL AGAIN AS BEFORE?

The simple answer is yes. However the two main questions are When, and How.

Although there is a global trend market, the real estate market behaves and will behave differently in each city, state, and country.

These trends are all different due to a variety of factors, and even though this pandemic has stopped us in our tracks, preparing and planning for the future of the real estate market could make a serious difference regarding the efficiency of our recovery as a global community. from

As Lucy Alexander (Staff writer at Robb Report in New York, recently wrote, after a brutal 2019, luxury real estate agents were expected 2020 to be their year, however we could not have been more wrong. I furthermore recommend reading her article:

“‘We’re in a State of Paralysis ’: Real Estate Markets Freeze Amid to Global Lockdown”

However, as in all crises, this pandemic can also become an opportunity for growth and innovation.

Another concern is whether the recovery we all so desire will occur as a V or U.

I am of the optimistic opinion that it will be in V. Without a doubt there will be business losses but, those who remain safe and isolated will want to return with spirit and recover from the losses (or lack of gains) as soon as possible.

OFFICE SPACES

As proposed by Marshall Toplansky (Clinical Assistant Professor of Management Science at Chapman University) the Pandemic is forcing us to rethink the traditional office model. Social Distancing and the advantages that have come with working remotely through technology, in combination with foreseeable layoffs, make models of hundreds of square meters dedicated for work space redundant. This is explained in more detail in his fascinating new article:

“THE FUTURE OF OFFICE SPACE REAL ESTATE MARKET ”

Furthermore, Nancy Sarnoff (Real Estate Reporter, Houston Chronicle) also exposes an accurate reflection on how the pandemic has made us reconsider the traditional office model, as well as addressing Social Distancing and the ups and downs that come with remote working.

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Recently, “video chats” with an expert friend in business plan development gave me a well known example. If renting a gym room in Madrid may be around € 30,000-40,000 per month, but capacity is limited and the distance between machines is increased, is there any business plan that can support it? The answer is no. If he the landlord does not lower the price, the gym will close.

Thus, we are all affected by this pandemic, therefore must lower income expectations.

The good news however, is that gradually, if circumstances allow, we may be able to renegotiate rising costs. Thus, we will be able, little by little, to overcome the situation.

LOCATION OF REAL ESTATE SALES

The spaces dedicated to the sales process of real estate developers also must be reconsidered. In my previous article, I already wrote about changes and adjustments needed for this new situation, and I strongly believe that :

Through the aseptic fiber optic cable, you must enter the home of your potential client and emotionally convince them, because at the end of the day these sorts of decisions are made from the heart.

I am especially referring to the possibility of demonstrating your project before it is constructed, however this obviously also applies to existing residences through virtual tours and immersive photos.

This possibility has been realised due to measures taken because of Covid-19, and are already being used successfully for a while now, explained by Allison (B.) Cohen in her article “California Realtors Ordered to Stop Home Showings, Inspections Due to Coronavirus ” it is now no longer permitted to visit properties however without a doubt, it is a highly recommended tool regardless of conditions. Allison comments in her article:

“Many agents have said that they are not feel comfortable selling a home in these conditions, for the sake of their Buyers.”

Howard Payson (Broker / Owner of RE / MAX Town & Country) also argues that “I am predicting that once the floodgates open, so to speak, it will be a market unlike anything we’ve seen”

Yes, it will be very different, and for that reason, we must all prepare for the new market that will present itself once the virus is over. He claims that sales will go virtual, but nothing will ever be able to truly replace reality, and I have to say that I fully agree.

Virtual tools are incorporated into the process but cannot replace the real experience of seeing and touching, something so reviled these days.

Along these lines, Alex Hickey (Business writer for Morning Brew | Editor of Emerging Technology Brew) in his article “Coronavirus Slows Real Estate Sales“ asks the question:

Virtual tours, is it time to shine?

The answer is clearly yes. Use the tools you should now familiarize yourself with. They will help you, if only to maintain the illusion of the buyer as a first step.

We all hope to regain our former lives and regain the rhythm of our old lives.

HOPE AND ILLUSION

Those in power need to make decisions that are sensitive and will affect us all. They have much more information than us on this, and it is their job.

Furthermore, we must reflect and take strategically sound decisions to the best of our abilities, regarding our businesses.

Whoever does this effectively, and implements it in their practice, will have much higher chances of coming out on topic after this is all over.

I wish you all much encouragement and luck.