Corona and what now? Why the virus has to make owners rethink.

Will the wave of regulation in Berlin be followed by the corona shock? Information from managing director, Dipl.-Ing. Almut Guthmann.

Almut Guthmann

Published on March 11, 2020

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Does the coronavirus affect your Berlin properties?

Real estate proves to be a safe haven in times of crisis. Direct effects on your real estate are only to be expected if you have immediate intentions to sell, as in times of economic uncertainty the willingness to buy on the market declines. Indirect and delayed effects of the coronavirus cannot be ruled out on the other hand, whereby a distinction must be made between residential and commercial real estate. Residential properties, whether owner-occupied or rented, are more crisis-resistant than commercial properties, as their long-term nature makes them less sensitive to macroeconomic uncertainties. For example, apartments are usually rented out on a long-term basis, whereas commercial properties are mainly rented out for a limited period of time. If economic growth fails to materialise or the economy gets into difficulties, this has an impact on the demand for commercial space. If commercial rents fall, the value of the property will also come under pressure. The coronavirus will be no exception. The coronavirus has less of an impact on the housing markets. Losses in earnings are absorbed and rent payments are usually secure.

What to do

Owners, property management and facility management must pull together and pay much more attention than usual to hygienic conditions. The new Coronavirus shows how one can and must take countermeasures. Digitalisation is an important ally:

• Tenants can be informed via digital notices, e.g. about changed cleaning times, public quarantine measures and emergency numbers.

• Owners can reduce the risk of infection by meeting virtually for (video) conferences. We are working on a technical implementation.

• Voting can be done virtually.

• Documents are no longer passed from hand to hand in printed form, but made available digitally via a document management system.

Digitalisation helps to avoid and interrupt chains of infection and makes your property crisis-proof. We maintain all processes around your real estate despite the necessary social distance. With digitalisation you also make a measurable contribution to the environment. With Est8 Services GmbH, we reduce the volume of paper by up to 95 percent.