"Post-quarantine transformation in real estate" - interview with Joerg Baehren, FIABCI Global Expert

Today we speak with Joerg Baehren - director of projects in RERise Gmbh, Germany, FIABCI-Ukraine member.

The main topic which is actual now in the whole world is COVID19 pandemic and Post-quarantine transformation.

FIABCI: What, in your opinion, is being transformed first in the market and what will not be affected at all and will continue to work as it did before the pandemic?

JB: I expect the pandemic to have a long-term impact in all areas – negative as well as positive.Digitalization will become even more important. We found out that it is also possible without a meeting room ... this is now replaced by a screen. Internet, IT companies, video conference providers and PropTech-Companies will be one of the winners.In my opinion, tourism will suffer the greatest damage.

People will be more careful with travelling - suddenly it's nice at home.

Airlines will consider further cooperation or will disappear from the market. Business trips will be reduced to an absolute minimum, which will also hit the hotel industry hard.The medical industry will get an incredible push. Masks, gloves and disinfectants will become the standard repertoire of shops and offices. Governments will create incredible storage space for these items in order to be more prepared for later waves or even new viruses.The real estate market is currently at a standstill. The transaction numbers have massively slumped. I firmly believe that the real estate market will be hit entirely - less in the residential area, significantly more in the commercial area and in tourism real estate.

The real estate world will have to adapt to new challenges and requirements. Logistic will be a winner – more Storages will be needed.

Companies will rethink their office spaces ... suddenly the home office has its reason to exist more than ever - and it works! The private tenant or buyer will make sure that there is enough space for the desk or even a third or fourth room to be able to work in the home office .... and then it is no longer possible without a balcony or terrace. Perhaps they are even thoughts in the direction of a multi-generation house again ... health and family are the most important thing.

FIABCI: How do you think the business will change in your professional area? JB: Previously, sales partners or even potential investors were invited to get an idea of ​​the investment on site. In future, advertising for investors will begin with a visit by computer instead of a personal appointment. It continues with online presentations and a live broadcast to examine all corners of the asset with a drone. Finally, a fund subscription is sealed paperless with the digital signature. The distribution of funds is put to the test. Since the beginning of the crisis, all seminars, conferences and other sales events have been cancelled. If any, customer appointments only take place online. However, this can mainly be done with regular customers or at least with known customers. This is more difficult with a first approach. In addition, investors are currently licking their own wounds. They either try to keep their losses as low as possible or reallocate. It is not yet clear where the journey is really going. But I expect investor behaviour to change.

Financially strong investors will increasingly focus on opportunity- and value-add-funds, while smaller investors are likely to opt for the stable, liquid variant. What some see as a crisis, others see as an opportunity.

FIABCI: What advice as an expert on the real estate market of your country can you provide to foreign and local real estate investors in your local market? JB: I am convinced that Germany will remain an attractive location for long-term investments with low but stable returns.

Nevertheless, I assume that property prices will drop by at least 25% in the next few months.

This will mainly affect residential real estate. In the long term, Germany will remain a safe haven for investors.

FIABCI: What new business tools do you think should be mastered by specialists in your profile? JB: I think we have to coordinate more closely with potential investors in my area and react even more flexible to changes. The risk profile of an investor and of an investment will have an even greater role.

A risk aspect - the complete lock down - has been added that was therefore not predictable.

As a result, to see more outside the box, to consider even more abstruse probabilities. Therefore a kind of "risk creativity" will be indispensable for me. I see this as a central business tool in my industry in the future.

FIABCI: What, in your opinion, new needs may arise from market customers, will require new services and products from specialists in your profile?

JB: To be honest, I don't have an answer yet

If you are interested to be a member of FIABCI-Ukraine - please apply here to get more information about the procedure and membership fees.

Digitalization of Planet is what allows us to maintain resistance, - Rusmin Lawin, FIABCI-Indonesia

In frames of our new section “Different opinion: FIABCI global experts” we make the repost of the today’s review of our colleague and global real estate and proptech expert from Indonesia- Rusmin Lawin.

“We just have finished our Webinar on Proptech: The Future of Real Estate Development: An Asian perspective”

Organized by Innovatif + and FIABCI Asia Pacific

Link to the recording of the webinar here https://www.facebook.com/innovatifplus/videos/930474357376919/

This is our strong messages to all real estate stakeholders in the region:

❇️This corona pandemic will not disappear soon - so we have to find the ways to co-exist

❇️The coronavirus pandemic can be seen as a wake-up call to society at large, specifically the real estate leaders about how important technology and the digitalisation of the planet is what allows us to maintain resistance.

❇️Technologies including those advances in artificial intelligence, remote sensors and drones, service robots, remote engagement platforms and many more are now serving vital role in monitoring ‘lockdown’ situation, tracking the virus spread and maintaining communication between the authorities with their people.

❇️Covid-19, this unexpected problem reveals that the lack of investment in new technologies by our society;

❇️and the fact that our buildings, townships and cities are still not as digitalised as it should be to face that kind of disasters and that the need for smart cities is present and very real.”

If you are interested to be a member of FIABCI-Ukraine - please apply here to get more information about the procedure and membership fees.

#covid19 #realestateafterpandemics #proptechafterpandemics #postcoronaworld #postcovidworld

"Public spaces in post-pandemic period" - Kateryna Pylypchuk, FIABCI-Ukraine expert

"Post-pandemic transformation should firstly include the creation of the health safety measures for the public spaces." - said Kateryna Pylypchuk - FIABCI International Board member and FIABCI-Ukraine executive director in one of the comments to the questions of FIABCI-Georgiaeorgia on the possible global trends on transformation of the public spaces in post-pandemic period.

We make the repost of this comment as a quote.

"The pandemics which we face now as a “black swan” of this century, can repeat in the future and it can be the normal thing to live while the pandemics for the whole planet. Your question about Public spaces is very important, as it is connected with the public health and health security system, which should be implemented on the level of government in each country (only in this case the pandemics will not repeat often).

First, what should be made, on my personal opinion, in each country or even on the global bases by WHO,

- The electronic biometric database should be added with the tests results on the COVID19 and other virus types of each person which allows to access to the public spaces, to buy online the tickets, to travel, to enter the hotels, cinemas, theaters, shopping malls etc. The tests should be made not later than 2 weeks before such an access or there should be proven security level of contacts with others who had also the tests with no viruses. For this issue, should be made:

- The system of the delivery of the tests to people

- The distant electronic tests results fixation

- Not to make the tests every two weeks - it can be voluntary system of contacts fixation using the smart phone apps (scanning of the at code of the person who is near you today) .

Secondly, what should be made by the state - is the demand of the “health security” barriers at the entrance of each public space, building, area, which will make the temperature measuring at the entrance and scanning the electronic ID, which should include the test data.

As a temporary solutions, which can be provided by the entrepreneurs (not in the government level, but as an added value service) - can be transforming public spaces, co-workings, sport-clubs, which can have for the period of quarantine- the isolated areas for those who want to proceed their sport trainings, to work having the isolated working space, probably at the same time there can be used movable transparent walls, or made from special materials to keep a social distancing and make people comfortable.

Let’s say, that we will have a 6-8 months of the quarantine and other time the people will be allowed to go out. Psychologically while the period of quarantine people will choose the safety: isolation, protection, but they still will lack communication and interaction not only by online meetings, but physically. As added value solutions for those who uses public spaces for leisure, some of them can be changed in a specific way, of creation of the simulation using the virtual reality for those who will wear the VR glasses (for example you start ride the bicycle and you will see your friends just near you who will ride the bicycle in another place, but you will see him around wearing the virtual reality glasses. In this case people will have a special entertainment areas, where they can be alone, but at the same time with their friends, who can use the same technology to be present with the other person , but virtually.

Hotels:

- Buying the room only allowed to those who is in a database of the tested and healthy people.

- Temperature check at the entrance of each visitor

- Special safety protection kits in every room for guests

- Antiseptic as a must in a bathroom for the hygienic as a standard

- Special inside architecture solutions for the communication with guests to protect them from any viruses influence, if any

- Health security alert protocols for the general safety of the hotel guests and staff

Cinemas and Theaters:

- Social distancing in the auditorium (the places should be not less than 1,5 m one from each other)

- Or special equipment for separation of breathing and gloves or invention of the special instant covering of the hands by spray which lasts for 2-3 hours to protect from any infection by touch (then there will be no need to make the distance between places)

- Testing of the actors before the show and allow to perform only for those who are healthy.

Shopping malls:

- Online shopping is going to become the new normal and the shopping offline will demand to transform the shopping spaces into logistic warehouse places with the showrooms and social distancing measurments allowing the customers to be safe inside

- Social distancing by creation of the “customer routs” inside of the supermarkets and preparation by the merchandisers of the already measured and weighted packed solutions to make the purchase and choice time less or to make possible for people to “change the rout” (if needed), creating the “lighting system” as on the roads not to cross with other people to avoid any contacts

- Security kits at the entrance (gloves, masks, antiseptic)

- NO CASH in shops - only digital currency

Banks:

- Only online work

- Cash should be changed into electronic money and taken back from people

- Special bank cash machines, which should take cash from people to avoid any contact with money.

- Banks should not be the public spaces any more. Only personal and individual communication online. In very rare occasions - personal contact (after check in a database).

Schools, universities and kinder-gardens:

- New health security standards for the premises: antiseptic at the entrance of each class room, regular cleaning of the class rooms, using the gloves and masks, or other separation of breathing and touch protection means

- Regular Testing of the health of teachers (the periodical should be estimated by the WHO)

- Regular testing of kids, pupils, students

- Blended education model should be implemented (online and offline classes made for both audiences at the same time - with the same level of efficiency - Change of the way of taking the course by the students should not change anything neither for the students nor for the teachers) If you want me to assume - the life after the pandemics will be not the same we had before it. And it will be needed a lot of inventions for making it safe and pleasant for the humanity! And profitable for the businesses.

P.S. By the way, this is the time for the social entrepreneurship. All mission models will have the possibility to resolve this big issue for the planet and at the same time to make profits for business.