A view of East London from an aerial view. As the solar units its glow is captured on the skyscrapers of Canary Wharf – the second enterprise district of London.
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Opportunity abounds for traders trying to seize on distressed real estate belongings in the wake of the coronavirus pandemic, in response to one of London’s prime real estate traders.
Thomas Balashev, founder and CEO of Montague Real Estate, stated real estate has been unduly hammered through the downturn, creating alternatives for consumers to make features as the financial system recovers.
“I think it goes without saying that there will be a lot of opportunity,” Balashev advised CNBC’s “Squawk Box Asia” on Tuesday.
Unlike in the 2008 Financial Crisis, which was linked on to the U.S. housing market and enabled alternatives for some folks to “get ahead of it,” the present financial disaster caught the market off guard, hurting in any other case sound belongings, Balashev stated.
“If you look at the way the pandemic’s been handled, both politically and the devastating effect it’s had economically, it’s caught many people by surprise,” he stated. “So assets that really shouldn’t be distressed, shouldn’t have had such a significant drop in value, have suddenly come onto the market.”
The world property market has been hit onerous this yr by the dual ills of waning demand for industrial real estate, like places of work and retail house, and shifting residential property calls for, as owners swap cities for the suburbs.
Still, there are offers available the world over, insisted Balashev, who lately joined a Luxembourg-based fund centered on buying distressed real estate belongings in Europe, Asia and the U.Okay.
“If you’re a liquid buyer and you’ve got deep pockets, there’s going to be a huge plethora of opportunity, not just in any one, fixed continent,” he stated. “I think it’s a great time for real estate globally.”
Indeed, London-based Montague Real Estate, which offers predominantly in off-market transactions in the prime- and super-prime property markets, has seen an uptick in enquires from traders this yr, stated Balashev. That features a 200% to 300% year-on-year improve in enquiries from traders in Asia in the U.Okay.
“We have to take that as a positive sign that people in the international markets are still looking to London as a safe haven,” he stated.