China is already on a recovering trend after the Covid-19 outbreak. A similar outcome could be expected for Romania, mainly driven by eCommerce, after the outbreak peak is surpassed, says Business-Review.eu.
The business environment in China was the first hit by the Covid-19 epidemic, but the fast decrease of new cases in the past weeks brings hope for recovery in the second half of the year, with a positive impact on the real estate market as well. Based on China’s evolution, a similar outcome could be expected in Romania too, mainly driven by eCommerce, after the outbreak peak is surpassed and the number of new cases drops, Colliers International consultants predict. Moreover, the current situation can bring growth opportunities for certain industries including segments of the real estate market.
With much of China’s office economy having run via remote working during the first quarter of this year and although many have been affected, 85 percent of the interviewed landlords indicated tenants have no plans to downsize their leases, based on a Colliers International survey conducted among companies in the real estate segment from China. Even so, tenants’ expansion plans in 2020 are nonexistent for most respondents (92 percent).
About 59 percent of the interviewed landlords in China believe rents will remain stable, according to Colliers International’s survey, while 29 percent expect rents to face downward pressure. In terms of vacancy rate, 40 percent of the landlords believe vacancy will remain unchanged. Overall, 34 percent of the surveyed companies believe their business will remain unaffected by coronavirus this year, while 19 percent say they have already been negatively impacted and 26 percent expect some sort of impairment to their business. However, small and medium-sized enterprises (SMEs) have been more affected, with 54 percent declaring that the coronavirus negatively impacted their business.
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