COVID-19 and the impact on global real estate according to Savills

Gtres
Gtres
21 April 2020, Redaction

According to the global real estate services provider Savills, global real estate operators' sentiment about the impact of COVID-19 on the sector is predominantly negative.

The survey carried out by Savills shows the perceived impact of the coronavirus emergency on variables such as real estate transactions and occupancy rates: in 67% of answers, the impact is moderately negative, while 29% of the respondents feel it is severely negative.

In the capital market, there are declining transactions in 62% of global real estate sectors, particularly in retail and hotels, where the decline is over 80%.

As for prices, business premises saw a decline in 82% of countries except Portugal, China, Vietnam and Malaysia, while they remained unchanged in the residential and non-residential sectors, particularly offices and logistics. The latter in particular in 57% of countries sees no change other than an increase in transactions, above all because of how the sector has been linked to the logistics regarding healthcare supplies.

As far as offices are concerned, the demand for space fell only moderately in 70% of countries (a sharp drop for 13% of countries). The same trend, only moderately negative, was seen in the residential sector.

The hotel sector, on the other hand, shows the worst results, with 95% of respondents recording drops in demand due to the cease in movement of people. As far as retail sales are concerned, 74% of the countries surveyed showed decreasing values.

As far as rentals during the coronavirus period are concerned, possible incentives could prevent a fall in values, particularly in offices and logistics.

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