Two months of the almost total shutdown is very serious, but not catastrophic. The government has taken incredible measures, guaranteeing loans to SMEs and taking on compensation for short-time working. We were able to negotiate with the lessors of our agencies for deferrals of payment of commercial rents which will be delayed over the second half.
But the players in the real estate transaction will face other difficulties. The agencies that will suffer financial losses related to the blocking of the market have greater cash requirements than any other company. In fact, cash receipts from agency commissions are only cashed after three months. This is why many brands that do not have strong enough backbones or have invested too much, risk going out of business. For the Corona property Spain result you can read the followings.
What will be the weather forecast for the high-end Parisian real estate market at the dawn of summer?
After this period of stupor which sadly reminds me of that of the attacks of September 11, 2001, real estate life will be reborn in the capital and its nearest periphery. The months of May, June and July are traditionally periods of high activity, families buying a new item during this period before the start of the autumn school year. But it is a safe bet that other priorities will emerge this time: ensuring the return of children to school, restarting the activity of a company, etc. There will no doubt be a lot of inertia.
- This will increase the aforementioned difficulties of real estate agencies. The economic recession looming in our country will reduce the purchasing power of certain households. Not sure that everyone gets the expected bank loans, and if this is the case, we will have to be patient with the likely lengthening of processing times. Conversely, the expected upsurge in the desire to divorce will lead to an influx of offers on the market.
After share portfolios that have lost a third of their value overnight, many people will no longer want to hear about the CAC 40. Real estate in western Paris will confirm their safe haven status. More than ever, we are safe from nothing except his main residence. On the condition, however, that a new tax system, that a new tax on real estate used to finance government spending of the solidarity fund does not undermine this security.
Has the period of confinement sharpened the thinking on real estate projects?
Absolutely. When you spend most of your reclusive time in your home, you are free to gauge its qualities and fault to see if his domestic prison is golden or not. Long crowded into four in 50 square meters can make you want to plan in a larger accommodation if you can afford it. It includes clarity, beautiful high ceilings, presence of an office room, calm that we could taste but which will disappear as soon as life resumes its course. All the qualities demanded of a domestic interior will resurface in the next research.