Irish 2021 Outlook for Real Estate has been saved
Irish 2021 Outlook for Real Estate
Room to improve
John Doddy, Partner and Real Estate Leader, Deloitte, looks at the impact of COVID-19 across the different real estate segments.
Like many industry sectors, the real estate market has felt the effects of the Coronavirus crisis, but its impact has varied across the different segments, hitting some more deeply than others. This has meant the appetite for investing or debt funding from banks, direct lenders and equity investors varies greatly across the various segments. The appetite to put capital at risk is linked to the risk profile and return potential of particular asset classes within the sector.
Consequently, banks and direct lenders have a limited appetite for funding bricks and mortar retail whilst equity investors are seeking value in strong locations where there have been significant drops in value, but the asset has the potential to recover in time and with new investment to repurpose it.
John Doddy, Partner and Real Estate Leader, Deloitte Ireland.
The impact of COVID-19 has led to much commentary about trends like increased remote working, and whether this could affect the longer-term viability of office space. Work practices were becoming more flexible; the Coronavirus crisis has accelerated that trend. However, physical workplaces remain essential both for attracting the right calibre of people and training them, as well as fostering team dynamics and instilling loyalty. Businesses will continue to require office space. What may change is the configuration of floor space that companies will require.
For information on the Global 2021 Commercial Real Estate Outlook see here.