Artjom Dmitrijev, Property Manager at BPT Real Estate, Estonia
- In Estonia, banks are blacklisting employees of the companies that applied for governmental support. This will cool the level of borrowing.
- Businesses are thinking more about flexibility.
- New concepts when it comes to ways of doing business are expected.
- Liquidity is good, governments have the reserves available.
- Government borrowing is available at good rates.
Real estate industry in Baltics
- Commercial real estate market is shaken, especially leisure and retail sectors, big hit in short term.
o It is fair not to expect any new large developments in these sectors starting anytime soon.
- Office market is fairly stable at the moment, no drastic changes are expected.
o There should be no panic buy or sell on a large scale, real estate is a long-term investment.
o The crisis might not bring massive discount opportunities in the office market immediately, however other sectors might become attractive.
- Downward price pressure on real estate in general is expected until 2022.
o Mixed scheme developments due to the diverse nature will provide more security for developers.
o Trend of mixed scheme developments has started a while ago and is expected to pick up pace in the future.
- Businesses are considering flexible working options as a way to reduce costs, improve flexibility and welfare of employees.
Our look for the nearest future
- The virus is likely to remain, so we need to focus on ways to live with it.
- Trends that were started have accelerated, for example online shopping.
- Mentality of the employers is changing and in some cases was forced to change, more trust to employees to complete tasks independently/remotely.
- Construction and infrastructure projects shall be rolled out broadly to boost the economy.
- Companies should optimize operations further, digital improvements and flexible working.
- Baltic countries should support each other, explore you closet neighbours and support local produce and service providers.
3 most important tips
1. Real estate is a long-term investment. We believe this crisis will be short lived. Support your partners, clients, stakeholders. We are in it together and together we are stronger.
2. We are much better prepared to tackle the reappearance of the virus, as such the complete lockdown might not be required. Stay vigilant, take care of yourself, provide safe environment for your employees, clients and those around you.
3. This crisis is set to speed up the trend of digitalizing and modernizing our economy and our way of living. Embrace the change and be ahead of the competition.
Find more: www.bptre.com