These were the main conclusions extracted from the new edition of the segment SavillsTalks at Home, on which prominent experts debated the crisis impact on the economy in general and on the real estate sector in particular.
The session was moderated by Santiago Aguirre, Savills Aguirre Newman’s president, and all speakers agreed that Covid-19 will generate an important change in certain real estate segments, the logistic and housing segments will come out reinforced, whereas in the short-term the hotel and retail segments will be more affected but, once normal activity returns will be stabilised.
In terms of the office segment, the experts gathered by Savills Aguirre Newman pointed out that the return to the workplace will be marked by a much more reinforced relation with technology, where remote work will be the dominant factor in future changes and as such, they expect a new conceptual approach from the office segment, with more technology in the buildings and more flexibility in terms of time and space at the workplace.
On the other hand, those who took part in the debate pointed out that, after the crisis, there will be a redefinition of the social contract, social consciousness and the environment by companies and they predict that the big companies will turn much of their efforts towards protecting their employees. The vertical integration of the economy in the real estate sector will also be encouraged so as to offer products in a more expedited manner.
Regarding the focus for investment for the next cycle, the tech industry, the healthcare and pharmaceutical segments, some big consumer brands and the already mentioned segments of logistics and housing, will be segments which will benefit the most from the crisis, although all of them will still need to adapt and reinvent for the new cycle.
Experts also pointed out that the virus impacted Europe asymmetrically with the South being much more affected than the North, due to the magnitude of the infection, the management of the pandemic and demography, which means that the recovery of the corporate and industrial fabric of each country will also be asymmetric.