ARiadni Real Estate Blog

Properties: What changes does the coronavirus bring to the market?

3 November, 2020

Changes in geographical preferences for renting or buying a home, a return to long-term leases and a rent boom in the high mountains are brought about by the health crisis where the real estate market continues to dance to the rhythms of the new reality. Market participants are transferring to "NEA" the 7 + 1 trends of which the biggest changes are found in the search for professional spaces as teleworking has shifted interest to smaller spaces and areas outside the urban fabric, while households are looking for apartments with office space.

There is an increasing trend for low cost properties and not in hot spots because entrepreneurs, mainly catering, aim to increase delivery or e-shop orders. Of particular interest is the return to the habit of the past - especially in the pre-memorandum years - which was renting a property in winter destinations with the season.

The holidays of the Greeks this year will not be abroad and so they choose, due to the pandemic, to stay within borders where according to the data there is an increase in rent in winter areas of 10%. Speaking to "NEA", Giannis Revythis, a member of the Board of Directors of Greece Brokers, said that the demand is greater where there are ski resorts. "Athenians prefer the ski resort of Parnassos and areas such as Arachova, Polydroso and Agoriani. Also Kalavrita and the wider mountainous area of ​​this prefecture ", emphasizes Giannis Revythis and adds" the people of Thessaloniki prefer the area of ​​the ski center Kaimaktsalan, Seli and Pisoderi. The inhabitants who are central Greece prefer Karpenisi and Pertouli in Trikala ". He explains that winter destinations, by comparison, are much cheaper than summer destinations. For example, a three-room house in Arachova can be rented from 8,000-10,000 euros per season, while in Mykonos this amount would correspond for a week.

Many owners have already opted for a cancellation policy - non-refundable, Themis Bakas, president of E-Real Estates, told "NEA" and explains that these are cases where they have made generous discounts, in relation to the initial requested daily rental price.

The new trends that are taking shape:

1. Search for larger homes. The trend that is gaining ground, especially for employees with children, is the search for a home with an additional room that can be configured in an office so that they can perform their professional duties through teleworking. The pandemic has created the need for residents of large cities to largely reconsider the choice of area. Of course, relocating to a "good" suburb of Attica in a house or a maisonette with a garden, requires increased available funds whether it is for rent or for purchase.
 
2. Return to renting houses with the season. The pandemic has drastically changed the cancellation policy on short-term leases, and many landlords have opted for a cancellation policy - non-refundable after generous discounts. Also, many owners have chosen the option of cancellation 4 days before arrival in order to obtain high occupancy rates especially during the holiday season. What is observed is the rental of property in winter destinations with the season, especially for the lovers of winter sports. Several landlords due to uncertainty have chosen to put their properties up for rent during the season.
 
3. From short-term to long-term leases. Since September 2019, many landlords have decided to return to long-term lease due to the rapid decline in their income (30% - 35% due to saturation). Those who remained were shot in early February 2020 due to a pandemic. Tourism in the summer also did not bring the expected to cover the losses while the future does not look optimistic. The remaining owners dispose of their properties even at 30% of the requested price in 2019 to obtain fullness. It is estimated that the activity of short-term leasing will be differentiated towards a more professional management and the predominance of management companies over smallholders.
 
4. Increase of storage spaces - logistics. Due to teleworking, the demand for food, toys, fitness equipment, etc. increased too much. with most orders placed over the Internet leading to increased demand for storage - logistics which is expected to increase further. It is estimated that very immediately there will be a need for storage spaces of less than 500 sq.m. - 800 sq.m., within the urban fabric of large cities to be able to directly supply the supply chain.

5. Many commercial stores target the e-shop. The non-reduction of monthly rents in commercial leases even after the legal framework of voluntary reduction of rents motivated by the tax deduction, does not seem to have a positive effect on property owners. Many commercial companies and mainly clothing chain chains initially consider closing stores that do not produce the expected turnover for their maintenance aiming at the rapid growth of e-commerce.
 
6. Café delivery e-shop. Health stores 20 sq.m. - 40 sq.m. that do not target the passing world and at the same time are a brand, study the relocation to non-promotional places with the aim of the cheapest rent and the increase of delivery through e-shop and telephone orders. Such models, stores of health interest in non-display points and without showcases, have already started in the last 2-3 years in the Northern Suburbs, targeting mainly company employees and employees who work from home.
 
7. Finally in the open plan spaces. The need to maintain distance between employees is expected to gradually and in the long run lead companies to seek more permanent solutions from the "cyclical-alternate" attendance of employees or the removal of offices so that they are not next to each other. The need for space is expected to increase and the density of employees will decrease, while the efforts for automation and avoidance of contact with common objects will be intensified and we will logically return to the small "closed" offices.
 
8. Teleworking leads to relocation of companies. The second scenario and probably the most prevalent one due to the fact that several of the small and medium enterprises and large enterprises adapted easily and quickly to teleworking, we will observe relocations of companies. Abroad it is common for a large number of workers to work from home, in fact, many have shown that this can contribute positively to productivity.
The office market industry is expected to change radically from the fact that many businesses will realize that they can be productive without having to relocate staff to the center in the southern or northern suburbs. There will be a great need for smaller spaces that will meet the basic requirements for supporting teleworking. Many companies will choose to move outside the center of Athens, choosing areas that will have new "smart" office space.

Eleni Stergiou

tanea.gr