There are many questions that haunt us today about the future of the sector, as well as about the new way of life imposed by the pandemic. In Spain, real estate activities account for around 10% of the GDP. How is the covid-19 affecting a reference sector and where is it evolving?
The residential market shows a change in the priorities of the user and his adaptation to a new way of life .The confinement suffered during the State of Alarm and the forced teleworking, has highlighted the need to materialize work spaces in the house (if possible isolated from other cohabitants) and to increase and optimize the stays: buyers are looking for homes with more light, more surface area, outdoor space and better connection to the network and home automation facilities.
If in the pre-covid era a large number of users were looking for central locations derived from the desire for proximity to services and leisure, in the post-covid era, with leisure restricted and hard hit, the priority of “location” can be relegated to another plane. In fact, there is a greater predisposition to move from the big cities to small cities and peripheral towns or rural areas, where getting wider and more exterior spaces are more affordable.
As for the specific rental model, unfortunately, as long as there are mobility restrictions between areas and countries affected by tourism, it is likely that part of the holiday rentals will be converted, at least temporarily, into residential rentals, increasing the supply for the tenant. In addition, covid clauses are materialized to facilitate the resolution of contracts, thus providing greater flexibility to the lessee.
But the fact is that uncertainty encourages flexibility and rapid adaptation to change. This flexibility, increasingly demanded by new generations and less traditional lifestyles, is the trend. A trend that was already born as a need for an increasingly dynamic environment and which is further accentuated by the new scenarios we is experiencing.
The co-living model already advocated this flexibility, focused on an alternative profile and survivor of the crisis who wants a complete solution and wants it now: those who are not dedicated to vacation tourism but to what we could call “labor tourism”, young professionals eager to know and experience a city linked to a limited work stage in time. A profile familiar with smart working, who can even decide if they work today in the office of a city or in the networking environment of their interest, and which city they will decide to visit in the coming months. A profile that looks for new spaces and environments where to develop and sustain a quality networking that promotes their professional and life experience.
But this “zero attachment” model, driven by the new social mentality of the younger generation, also offers a no-holds-barred solution to periods of uncertainty that can turn traditional users into followers of this model.
In addition, the intense digitalization of this model makes this solution much more tempting when it comes to making the decision: it avoids paperwork and formalities, visits, interviews, trips and therefore optimizes time.
