Research: Which real estate markets survive the pandemic – What about Greece



Properties intended for retail and office use due to the uncertainty of rent collection are those that will be most affected by the uncertainty of the pandemic. The difficulties, according to research, with business trips and potential future lockdowns cause concern about reaching agreements, while already before the pandemic the industry recorded a series of ongoing agreements, which are subject to due diligence process. Covid-19 in tourism has also affected the real estate market, especially in countries such as Greece that rely on this sector, while dominant sectors in terms of prospects, data centers, logistics and life sciences. According to the 18th edition of Emerging Trends in Real Estate® Europe, co-published by PwC and the Urban Land Institute (ULI), Berlin tops the real estate market outlook with German cities remaining strong in the midst of of the pandemic. Second is London, moving up two places as investors see good long-term returns, while Paris remains in the top three. Assessing new opportunities in the context of restrictions and the difficulty of developing new relationships in the “Zoom era” may slow down significantly of trading volume. At the same time, this could favor players with a larger footprint with available resources in more countries and benefit real estate markets in larger countries, such as Germany, where there is critical mass and internal mobility. Covid-19 accelerates digital transformation worldwide influencing investor preference sectors. In this context, strong prospects are recorded for the logistics, data centers, communication towers and fiber optics sectors. In addition, life sciences, health and housing are high on investors’ minds as a result of the pandemic. In particular, the pandemic has accelerated a number of trends that have already emerged, such as digitization, distance work and online shopping. , but given the artificial environment created by ongoing lockdowns and government support for employees and businesses, it is difficult to assess the long-term consequences. The pursuit of returns, which is even more urgent now than in the pre-coronary era, continues to drive investors to real estate, especially basic and income-generating real estate, such as housing, which continues to attract investors. Sofia Athanasopoulou, Director, Advisory, PwC Greece, comments: are hotels and malls face difficulties. At the same time, the trend of teleworking came to be based on 91% of respondents while the change of use (repurposing) remains a trend that will affect the real estate market in the next 3-5 years, now focusing on the office and commercial sector. In fact, 47% of respondents believe that reconstruction is the most attractive way to buy prime assets which in any case are considered overpriced for 41% of respondents. “In the long run, the biggest impact in the real estate sector is expected to be on climate change and, more generally, the implementation of environmental strategies.” Lisette van Doorn, CEO of ULI Europe, says: “Europe’s real estate market is at a critical juncture as efforts are made to determine its future role in society as it faces the challenges of the pandemic and the continuing uncertainty it creates. In society As a result of the pandemic, ESG strategies for the Environment, Society and Governance have become much more interesting. With many already committed to reducing the environmental impact, recognizing the growing importance of the social aspects of their strategies. According to Gareth Lewis, Real Estate Director, PwC UK: “2020 saw the world of real estate begin to appreciate more its wider role in society – from tackling diversity and inclusion in the workplace to a greater emphasis on the environment, society and governance agenda. The social upheaval caused by the coronavirus has the potential to accelerate growth and development. importance of investments that affect the environment, with the social impact increasingly being seen as part of an overall strategic planning and not just an investment strategy. Ranking of European cities based on investment and development prospects It is relatively reassuring that there was no final growth explosion stage, which means that the offer and Demand in the European real estate market is in equilibrium as support for stable values ​​such as Berlin, London and Paris continues due to their long-term prospects. The ranking of cities in this year’s report reflects both the caution and market opportunities , with a focus on cities that are considered to offer liquidity and stability. Berlin is at the top of the cities of preference for their 2021 outlook, with investors encouraged by Germany’s relatively strong performance in dealing with Covid-19. Real estate executives have been very cautious about the overall forecast, with interviews conducted between July and September show a significant decline in business confidence, and 28% see a decline in business confidence compared to 13% in 2019. In addition, 44% expect a drop in profitability compared to 15% in 2019. Outbreaks or pandemics led 88% of respondents to say “anxious” or “very anxious”, while 79% were “anxious” or “very anxious” about international political stability. the prospect of central banks keeping interest rates “lower for longer”, seeing reassuring levels of real estate investment activity, even in the midst of the first European lockdown, with many of them reporting “accumulated funds” waiting to be utilized. The majority (53%) of respondents expect investors from Asia, considered to be the first to recover from the Covid-19 pandemic, to increase their investment in Europe in 2021, although this figure is significantly lower than previous years. Nearly a third expect European investors to increase their investments next year, while a small majority expect them to remain stable. Industry outlook 2021 – top tenAs mentioned above, three of the top four real estate items in the Emerging Trends report rankings Europe, are likely to benefit from the increasing speed of digitization around the world, including data centers, communication towers, fiber optics and logistics facilities. The life sciences have also attracted interest, with many manufacturers and investors rushing to learn about an industry that has traditionally been highly specialized, but in which strong prospects are recognized, given the long-term demographic trends and the anti-cyclical nature of the industry. Although slightly less intense than last year, housing remains the industry with the highest investor preference, with three of the vols in the top ten to be some form of housing. Respondents expressed concerns about the increase in regulations. Given the large increase in distance work and the uncertainty about how this trend will develop in the long run, as well as the future of workplaces, there is no office sector in the top ten this year. while even co-working office space has fallen in the ranking as the industry adopts a waiting approach regarding the developments that will follow after the pandemic. Follow it on Google News and be the first to know all the news See all the latest news from Greece and the world, in



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