Coronavirus: "The looming
new real estate crisis is more severe than the one in 2008."
Currently our activities are on hold, and that's normal. Responsibility for us could not be measured by profit. But yes, the market will suffer. And the challenge will be to make up for the weeks of complete stagnation.
How do you maintain your activities during the pandemic?
We were able to adapt quickly. We work with reduced staff. Most brokers work from their homes. The crisis is not a reason to cut contacts with our clients. Just on the contrary, we stay in touch with them by phone and email, finalize previous deals. We are focused on performing the activities we can with discipline and precision. Otherwise, we cannot help but note that because of the Covid-19 crisis, especially after diagnosing the first cases in the country, our work as brokers has begun to decline. But not quite, there are still signs of life. This gives me the courage to believe that the real estate market’s premium segment will do better than the stocks on the global financial markets.
Do you find any similarities
with the "bubble burst" in 2008?
These are two completely different scenarios. In 2008, the financial and banking crisis affected mostly the stockholders, but the economic activity then was only with reduced turnover and not completely halted. The current situation is more serious. This is a health crisis that will result in an almost complete paralysis in the pace of economy over several months, taking Italy and China, for example. An example of the gravity of what awaits us is that during the 2008 crisis governments were not providing financial and fiscal aid to businesses as they do now.
Do you expect a drop in the real estate prices?
For the time being, it is very difficult to give an exact answer to this question. People will seek security through safe investments. Traditionally, these are luxury real estate and gold. If the economy recovers by early May, the market will resume from where it left off and will move up relatively smoothly. But if the state of emergency continues until mid-July, the picture will be different. It will all depend on the scale and duration of the health crisis.
