According to Thomas Balashev, the founder and CEO of the international real estate consultancy Montague Real Estate, “many opportunities” are opening up on the real estate market despite the economic downturn caused by the corona.
Analyst against “CNBC”
“I think it goes without saying that there will be a lot of opportunities,” Balashev recently said in CNBC’s “Squawk Box Asia”, referring to the investment opportunities that are currently being felt by the impact of the Corona crisis on the situation of the real estate market. In Asia in particular, there is an increase in interested investors looking for impaired real estate.
Financial crisis 2008 vs. Corona crisis 2020
“If you look at the way the pandemic has been dealt with, both politically and in terms of the devastating effect it has had economically, many people have been taken by surprise by this crisis,” Balashev continued to tell CNBC. “Assets that shouldn’t have got into trouble, that shouldn’t have lost so much of their value, suddenly came onto the market.” – The Corona crisis thus contrasts with the 2008 financial crisis, which is directly related to the real estate industry and thus allowed investors to plan more foresight than they can in the current situation.
Balashev on the impact of the pandemic
Two evils hit the real estate market in particular: the falling demand for commercial property and office space and the urbanization trend. Nevertheless, according to Balashev, there are investors who specifically buy up properties in need. Commenting on this, he says, “If you are a liquid buyer and you can dig deep into your pockets, there will be a plethora of opportunities, and not just in one continent,” he continues, “I think it’s a great time for Real estate worldwide. ”Balashev’s company is also seeing an increase in inquiries from investors in Asia. “We have to take this as a positive sign that people in international markets still see London as a safe haven,” he said.
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