Pandemic non-bridge: The inflow of coronovirus onto the rhinoceros.
Due to the spread of coronavirus throughout the world, the authorities recommended that Ukrainians refrain from traveling abroad. Our compatriots did not immediately take the threat seriously. However, after COVID-19 was discovered among tourists arriving from Milan and quarantined by anyone who could contact them on the plane, the number of citizens wishing to spend their vacations abroad significantly decreased.
The first to incur losses from the introduction of quarantine are business oriented to the hotel sector and short-term leases. In Ukraine, entry into the country is restricted, or the visit is subject to subsequent quarantine, business, entertainment and sports events are canceled, which led to the cancellation of business trips and tourist flow. In Ukraine, large exhibitions, forums, and sporting events have been canceled everywhere, which will also lead to losses in the hotel sector and losses to apartment owners who rent out for short-term leases.
Real estate companies have not yet noted the cancellation of transactions, real estate impressions in connection with the coronovirus. Transactions advanced in February 2020 for real estate are held in normal operating mode.
Nevertheless, promising business activity froze. Real estate sellers are even willing to bargain, but the buyer postponed his intentions until the end of the quarantine. The hryvnia exchange rate is daily losing ground. Statements by many about the start of the global crisis are halting buying activity.
At the same time, experts say that if the situation with coronavirus in the world does not improve in the next three to six months, then the welfare of citizens will decrease and the market by the end of 2020 may sag by the number of transactions by 30% or more.
Coronovirus brought down real estate market in China
Coronavirus led to the closure of most cities in China, and the real estate market was no exception. The number of transactions in the primary real estate market in Shanghai in February decreased by 56% compared to the same period last year, or from 3256 transactions to 1413. A month before the spread of the coronavirus in Shanghai, 3982 real estate transactions were completed, writes Forbes with reference to data from Knight Frank Evergrande Group, one of China's largest developers, has offered discounts of up to 25% to stimulate demand.
Small development companies in China are on the verge of bankruptcy. In the first two months of this year, about 105 real estate companies filed for bankruptcy. According to international experts, sales of new buildings in China this year for the first time in 12 years will fall, and the number of transactions will decrease by 15%.
The same picture is happening all over the world. Countries that have declared quarantine suffer huge financial losses. Due to the temporary cessation of demand for real estate prices are starting to decline.
It is believed that coronavirus is not eternal, and in the summer, according to experts, its effect will be minimized. But economic consequences remain that will continue to affect the dollar and the market.
To a large extent, the situation will depend on how our relations with international financial organizations develop and whether the country can receive external loans. The absence of the latter can again inflate the course. A separate question: how can we survive the quarantine regime, what steps to support the population and business, the country can not just declare, but actually implement. For example, the USA has already announced tax holidays for the population for 3 months. The Verkhovna Rada is preparing for consideration a similar bill.