Worx: almost 90% of investors want to conclude operations this year

Worx: almost 90% of investors want to conclude operations this year

These are the conclusions from a survey carried out by Worx on a pool of 37 real estate investors, according to which, 89% stated they will conclude at least one operation until the end of 2020 and 11% believe they will not close any deal.

According to the survey, 59% of investors stated they did not suspend ongoing operations, as opposed to 41% who have had their activity frozen. Faced with the crisis, 54% claim to have changed their investment profile and 24% admit to having let go of some of the assets from their real estate portfolio.

62% of investors believe the market will face a general break in terms of asset valuation, «caused by higher yields», whereas 35% believe the valuation will stabilise, but with a greater balance between offer and demand. Only 3% believe in a quick recovery to a performance similar to that before the pandemic crisis.

According to the consultant, «ongoing projects continue, construction companies have not stopped, only some difficulties are expected in the delivery of supplies and labour availability. Thus, developers will have to reassess some of the projects. It is expected that the housing segment will be the one to suffer the most with the pandemic, caused by the lack of trust from consumers». The retail and hotel segments will also go through hard times.

On the other hand, «there are segments which will inevitably end up benefitting from the situation, such as food retail and online commerce logistics».

Iberian Property logoIberinmo logo
Iberian Property is the best platform for investment in Spain & Portugal. Created for those who seek reliable information about players and deals happening in Iberia. Through updated database, reports, market indicators and daily news, we report “Who’s Who” in Iberian Real Estate!. Iberian Property is also proud to organize the most important international real estate investors’ meeting in Iberia - Portugal Real Estate Summit!