Rapid changes to the commercial real estate sector due to the impacts COVID-19 has had on tourism and remote working should encourage landlords and investors to pounce on the new opportunities that abound, according to Dhalia Real Estate.
A spokesperson for the real estate agency said it is too early to determine how the property market will respond to continuing outbreaks of COVID-19, adding, however, that “flexibility and adaptability are key in this time of uncertainty”.
“Inaction and reluctance to change will, more than likely, result in losses and failure.”
Commercial property professionals are suggesting that landlords take a more active approach when it comes to their leasing strategies in order to make the most of the serviced office sector that is emerging in new sub-markets.
“This market is already gaining a lot of traction and it will surely increase as a result of the outbreak,” said Dhalia.
All in all, the commercial property market should jump at the first opportunity, Dhalia’s spokesperson continued, not be constricted and reluctant to change and take advantage of this new chapter in Malta’s real estate market.
“Before the pandemic,” says the representative, “remote working was only for the select few in the tech industries like iGaming, digital advertising and FinTech.
“This shift, from working continuously, day in day out, from an office to now working from a laptop/desktop in the comfort of your own home, is set to change the island’s commercial property market in a variety of ways,” he contends.
He believes that although it may be too early to judge whether the trend for short and medium-term office rentals to make up an increasing amount of the market, previously occupied by long-term lease commitments by many big brands, will continue.
The Dhalia spokesperson points to the “great success” in the rise in serviced offices.
“A number of providers have started to lease out large office and business centres for long periods of time,” he explains, “which are in turn being sublet to smaller brands looking for short to medium-term solutions for their company offices.”
Asked what he thinks about the resilience of the local property sector, he says that when it comes to rental prices, these have been slightly more affected by the pandemic.
“Due to a shortage of foreigners on the island, both because of the pandemic and also due to Brexit, there was a sudden drop in short-lets, especially in the central business district,” he says.
This led to the same properties being transferred to long-lets, increasing the supply of rental housing at a time of reduced demand.
One of the key effects left by COVID-19 is the true appreciation for one’s home. Over the past two years, people have spent more time at home, alone or with their loved ones, and as a result, this truly brought out the importance of how a home can be the most important investment.
“Post COVID-19, having a home with an opportunity for a study space, for example, is going to be a top priority for most people. The property market is also envisioning a greater demand for houses in strategic locations with back gardens, terraces and/or views. Spending more time at home, people will now start to look for a sense of the outdoors, in their own home.”
Meanwhile, the Government has extended the first-time buyer stamp saving, as well as other incentives.
A new incentive has also been introduced in which both purchasers and vendors could save on contracts that were signed before March 31, 2021. The incentive was for the first €400,000 in contract value.
Are you looking for a new property? Dhalia will connect you to the property that you need, even in this challenging time of the pandemic. We are made up of a professional team who have built their reputation based on trust. We will help you get there!
Whether you wish to purchase, sell, or lease, contact us for more information on 21490681 or [email protected].
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