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"This is a good moment for opportunistic investors"
23 April 2020 |

Despite the disruption, relocation and uncertainty the real estate market faces due to the new coronavirus, this might be a good moment to invest. Conditions seem to be aligned to find «good opportunities in the market» and that «makes this a good moment for opportunistic investors».

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This is the opinion of Juan Velayos, Managing Director at Alantra, who further explained during the new segment Iberian Property Investment Talks, that «opportunistic investors will be more active and flexible since they don’t know how long this moment will last and should look into positioning themselves».

On the other hand, this might also be a good moment for core players. «If they are convinced of the market’s fundamental vectors, core players should remain active on the market», pointed out Juan Velayos, who in general believes that «this should be a good moment for long-term investors».

Economy’s recovery may take years

Despite «nobody knowing exactly what follows», Juan Velayos predicts that «we will lose many jobs and many companies in the coming months». And despite the difficult months ahead, he believes that «we should soon leave this situation».

For Alantra’s Managing Director, it should take the economy a few quarters until drop stabilises and «some years to recover to pre-crisis levels». And he added more specifying: «two or maybe three years». But he remarked that it all depends on how much longer the situation will last.

"What will be the crisis’ impact on demand?"

Concerning the future scenario, Juan Velayos has more questions than answers. He considers that «it is still too soon to draw conclusions over what will change henceforth. But one thing is certain, we know that change will come. Real Estate will change as will the other sectors».

The challenges will appear and investors must be ready to face them. Now it is important to understand: «what will be the crisis impact on-demand, on offer, on costs? How will these factors change? ». 

All sectors should evolve and readapt to a new reality. «Will Senior homes suffer disruption? Yes, surely. Will required office minimal distancing cause an impact? Yes! Work from home will be different? Yes». These are some questions which, according to Juan Velayos, owners will have to face in the coming months. But the most important is to understand what will be different and how it will impact changes in the different sectors.