Trends in the Real-Estate Market No. 6

Report on the second quarter of 2020 with relevant information on the macroeconomic environment and the different segments of the real-estate sector, such as residential, logistics/industrial, offices, retail and hotels.

GLOVAL Group reports the key aspects of the COVID-19 quarter in the real-estate sector.

Nothing escapes the effects of the global, European and Spanish economies coming to a complete standstill.
In only 15 days, the GDP registered a 3.8% fall. Stopping the production triggered an unprecedented demand shock. The GDP drop for the entire year is estimated at 12-15%. The unemployment rate in March was 14.4% and on its way to reaching 2012/13 levels. Another indicator to watch is the debt ratios, both public and private, that bring a rise in defaults.

But what we hope is different from the last liquidity crisis is that once the virus is neutralised, we will be able to return to pre-COVID-19 levels. The companies appraised and their professionals must become fully aware of the impact of sustainable factors on the values shown in the reports, such as the physical characteristics of the assets, the impact of the climate change depending on their location, applicable tax and legal measures and public policies. Both investors and tenants must increase their awareness about sustainability. The addition of sustainability factors to the reports will be an added value when estimating the asset value.