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How Will Different Industries Adapt For 2022?

2020 was a year that we will never forget. The impact of covid-19 has been felt in all sectors, while governments and citizens around the planet have tried to keep the disease at bay to minimize its impact on the economy or our day-to-day lives. The real estate sector has also suffered the ups and downs derived from the pandemic, especially in aspects related to investment returns or falls in the demand of the rental market. But in other sections, it has shown surprising resilience, largely thanks to the countries’ interventions to mitigate the effects of the different confinements. 2021 is presented as a year of recovery, and so far it has done just that in many ways. It will be a period in which interest rates will remain low – they are not expected to rise until 2023 – in an environment in which inflation will also remain low. It is expected, however, that investment will grow by 8.5% throughout the year to return to pre-covid levels for the second half of 2022. With these guidelines, we review some of the trends in the real estate sector to this year according to the EMEA Real Estate Market Outlook 2021 report: 

 

Housing targets the job market

It is expected that in 2022, government aid to alleviate labor market problems may disappear. The impact of the coronavirus will have consequences in the rental market. This should be focused on greater operational efficiency. And put more focus on the tenant, while providing spaces with greater flexibility. On the horizon is the possibility of expanding the housing catalogs. This is to accommodate rents for reduced incomes and official protection. This will help diversify sources of income and enhance the historical shortage of social housing. 

Offices and teleworking

Long-term rentals remain a guarantee for tenants. They should pay special attention to aspects such as hygiene, well-being and versatility. For landlords, this is a good time to negotiate lower prices. However, it will be necessary to reevaluate the impact on cost and productivity that teleworking will have. In relation to face-to-face. Opportunities for retail are vast, however.

The main opportunities will be in the food sector, large shopping centers or iconic places in the center of large cities. As well as in the refurbishment of premises to give them a second life. Property rents and values will be recalibrated down, offering new opportunities for investors.

Hotels, the most affected assets

The tourism sector will still suffer throughout 2021. This will pose a challenge for large operators when dealing with debts and payments. In this sense, improving operational efficiency, strengthening demand and reducing supply should help increase income in the tourism sector. Facing the most immediate challenges, experts recommend strengthening customer focus. As well as reducing costs, consolidating and repositioning. Of course, without forgetting that it is also necessary to accelerate innovation. And recapitalize businesses. It is about saving the furniture until the economic situation is favorable. 

Other sectors

In the field of ‘ data centers ‘, the high demand will continue in 2022. Although it will be important to anticipate the needs of a market that is beginning to saturate in some European countries. Personal storage and health are other areas where demand has remained unchanged. Not so leisure and entertainment, which have seen their activity almost completely interrupted.  And which faces similar prospects for the coming years. 

Logistics, the most resilient sector 

The rapid growth of the online channel due to movement limitations has increased the demand for facilities. Especially capable of managing the cold chain. In addition, supply chains have grown and been reconfigured. There has been an increase in inventories and greater automation, while the supply of logistics facilities has shrunk. Two predictions are extracted from this last point: logistics centers will get closer and closer to consumers. It is not ruled out that shopping centers with little success are converted to this activity. 

Change in how we shop? 

In 2022 the most prominent consumer and consumer trends are likely to be:

  1. Post-pandemic spring effect. 
  2. Sustainable products. 
  3. Transparency as a requirement. 
  4. Health and concern for themselves.  

These strategies, which are sold as sustainable, are effective in attracting consumers. Beyond the pandemic, natural phenomena play a role. Such as major tropical storms, droughts and air pollution, make users aware of caring for the environment. The new generations of consumers want to be sustainable and really support all kinds of initiatives that show themselves as such. Similarly, consumers have no compassion for brands that are not sustainable. Just seeing enough unnecessary plastic and polluting products in it to make headstones in digital media.

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