Research points out the impacts of coronavirus on the real estate market
It is difficult to find an industry that is not being impacted by the Covid-19 pandemic, and real estate is no different.
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Real estate market - An unprecedented survey released on Thursday (2) indicates that 45% of people who intended to buy a house or apartment in the period before the arrival of the coronavirus in Brazil momentarily gave up on the purchase, given the uncertainties of the period. Most of them, 55%, however, maintain the desire to acquire their own property, which brings a scenario of optimism (notwithstanding the characteristics of the moment) and opportunity for civil construction companies.
““In our analysts' reading, it's a good drop, so to speak, because it's not tragic. It would be strange if 20% of people said that they gave up on the purchase at a time when [social isolation was experienced in several cities in Brazil] and when they were already fully aware of the problem, and tragic if it had fallen to 80%”, evaluates Fábio Tadeu Araújo. “This 45% drop can be understood as a reading of fear, not panic”, completes Guilherme Werner, both partners at Brain Inteligência Corporativa, responsible for the research.”
“The survey was carried out between March 20 and 27 and heard 600 people from a group of about 7,000 who had signaled the desire to acquire a property in the pre-coronavirus period, between October 2019 and February 2020.
When to buy?
The planning for the purchase is another data seen as positive by analysts, since half of those interviewed said they maintained the deadline in which they expected to purchase the property. 33% of them plan to do this in the next 12 months, while 17% plan to have their own home in 24 months.”
“The other half, in turn, plans to postpone closing the deal , but a good part of them still intends to do this within a period of up to 24 months. “Developers, real estate companies are still able to do a good job online. We can take advantage of this moment to reach the consumer. Today, at least 22% of Brazilians are still thinking about buying property, and these people are waiting to be contacted. [Companies need] to make an exceptional online management, within what the context allows”, suggests Araújo.
What to Buy? - market
At the other end of the chain, the availability of offers follows the movement of those planning to buy a property. This is because most developers intend to maintain the pace of launches (13%) or postpone it within a period of 60 (25%) or 120 days (18%). Another 35%, in turn, intend to postpone them without setting dates to resume them.”
“Despite the apparent panic that the business community has experienced in the last 15 days, which I believe will start to decrease with the economic measures actually coming to fruition, only 2% of developers have already decided to cancel the launches. Therefore, we still believe that this year we will have a certain return to normality, even if not as imagined in the beginning of 2020”, defends Araújo. Before the Covid-19 pandemic, around 600 launches were planned for this year in the country.”
"Another fact that justifies this scenario, in the analyst's opinion, is that the most acute phase of the pandemic in Brazil, in managing to contain the spread of contagion, should last about 45 days, which would allow the development sector to return back to normal in about two or three months, as he added in a live broadcast on AG7 Realty.
The task that remains for companies at this time, also according to Araújo, is to do their homework, that is, take the opportunity to go deeper, study projects, understand what the consumer really wants or needs. “The way we live [and live] will change. We just don't know where yet," he added."
