Opinion
14:36 21 March 2020
Post by: WBJ

Real estate during the time of plague, i.e. about resistance to turbulence

Real estate during the time of plague, i.e. about resistance to turbulence
Source: Partners International

The premium real estate market is considered the most resistant to any decline and economic turmoil. The more luxurious the property and its prestigious location are, the more it should be protected. The entrepreneur's life in the current situation, however, brings unexpected twists and turns. It turns out that in order to save the future of their companies and jobs, some are forced to sacrifice their existing real estate investments and cash them quickly.

It is difficult at the moment to answer the question of what the real estate market will look like in the coming months or years. We do not know how the economy will cope with the situation. However, we know that real estates, especially those located in prestigious locations, are the safest form of investing money. Their profitability is several times higher than in the case of other methods of the capital increase, which are no longer as resistant to market turbulence.

It is worth noting that real estate has practically no property risk, i.e. its loss. Other financial instruments, such as stock market shares, in which clients also invest, in the vast majority are exposed to such risk. With such economic turmoil, which we are currently dealing with, assets can instantly "evaporate" there, and there is no question of dividend payout.

However, in the case of real estate, at most for some time we will lose the benefits of renting or their value will temporarily fall. However, in the long run, we will not only keep our capital, but we will certainly increase it. It is historically known that, despite temporary declines, the value of real estate always increases. That is why it has been one of the best tools for securing the assets of future generations for years.

As for business management, we are currently dealing with a situation for which the vast majority were not prepared at all, which is why we cannot act intuitively. As in any crisis, chaos occurs at the beginning. The goal is to reduce it and build a new framework for functioning. It depends on the maturity and professionalism of each company how quickly specific activities will be planned. Because we do not know how long this situation will last, so just in case it is better to take a longer perspective, avoid misinformation and remain in constant contact with both the team and the clients.

Let's try to pick out only what constitutes a constructive message for us from the information noise. The role of the leader is now a management culture and the promotion of appropriate attitudes. It is also a good time to get in teams, to think about how we operate in difficult situations and what to do to strengthen us.

Joanna Czapska
Partners International
Managing Director

Daniel Zdrojowy
Partners International
Sales Director






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