Real estate agents expect real estate activity to decline in 2021

In a survey conducted in January of the 850 active member companies of the Association of Real Estate Agents of Portugal (ASMIP), almost half of the companies provided forecasts of a decline in activity in 2021.

According to ASMIP, 46% of companies believed they would experience a drop in activity in 2021, with the majority pointing to a drop in real estate business realization between 5% and 10%. However, there are 30% of companies that are betting on keeping it active and 24% even believe in business growth, although in this latter group a significant portion (17%) expect only a slight recovery.

In the surveys among employees that ASMIP regularly carries out, it is also possible to identify the effects of the pandemic on the mediators. This study says that in 2020, 54% of companies experienced decreased activity and 23% said their business was flat. Only 23% of the respondents state that they have increased activity compared to the previous year.

Looking ahead to 2021 and analyzing the outlook by business area, it is clear that most of the business is likely to be in the residential and rural areas. All other categories are expected to decline in sales, with a focus on 77% of respondents who believe tourist housing sales will decline versus 20% in maintenance and just 3% who believe it will some boost in business.

It is also widespread that the business of selling commercial, industrial and office space will be badly hit by the crisis, considering that the same situation will arise with leases in these segments.

In a comparative analysis of 2020 activity versus 2019, only 23% of respondents said they had increased activity, versus the 54% who guarantee a decrease and 23% who saw business stay the same.

There are also changes in the search for typologies. The homes, where demand is traditionally the focus, have been pushed into the background, with homes being preferred. According to the association, from now on both houses and land will receive new impulses due to the growing interest in the acquisition of open and airier spaces, which were previously not so important.

“This is a factor that must be taken into account in the new projects under development not only in the cities, but also in their peripheral areas and also in the provinces, so that we can respond to the growing demand,” said Francisco Bacelar, President by ASMIP, in a statement released this Monday. One of the reasons that help explain this situation is the rise in teleworking, which is increasingly viewed as a benefit by companies and by many employees as well.