Change in Lifestyle vs. Rental Prices

It is estimated that the increase in online sales and the greater trend towards telecommuting will result in a lower demand for commercial premises and offices, exerting downward pressure on the price level of rents in the long term.

Tuesday, May 12, 2020

The quarantines decreed in the Central American countries because of the covid-19 outbreak, have caused a transformation in the operations of the companies, in the ways of working and in the models of business and sales.

You may be interested in "Real Estate Supply: How do Prices Behave?"

Specialists in the real estate market are beginning to forecast the changes that will last in the property market after the most critical phases of the health crisis are overcome.

In the case of Costa Rica, the rental sector is expected to change completely for the post-pandemic period.

See "New Commercial Reality: How to Reach Customers" and "Changes in Lifestyle and the New Commercial Reality"

Justin Stein, president of InmoInfo, told that "... The demand for premises and offices will not disappear, but it will be reduced. That will increase the competition between spaces. Sophisticated landlords will partner with their tenants to create solutions and promote a long-term relationship over short-term profits."

Stein explained that "... it is possible, then, that some of the demand will never fully recover because it is precisely the advance of e-commerce and home delivery that will permanently affect some of the consumer's habits."

In CentralAmericaData we have information about the real estate market in the region, with figures such as prices per square meter according to area and type of property, preferences of home buyers, data on green land, and many other interesting facts.

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More on this topic

Real Estate Rentals: Outlook for 2021

September 2020

Because the supply of office and commercial buildings has increased, and at the same time unemployment has also risen, in Costa Rica the directors of these properties foresee that next year the parties will have to renegotiate the contracts.

Data collected by Colliers International indicate that between June 2019 and the same month in 2020 the total inventory of commercial buildings increased by 1.5% from 1.16 million m2 to 1.18 million m2.

Shopping Centers: Unemployment Rate Concerns

September 2020

As a result of the crisis, in Costa Rica in June of this year the rate of availability of premises in shopping centers climbed to 11.8%, a proportion of concern because a healthy level should not exceed 10%.

The phenomenon, which is not new in the country, has worsened in the context of the covid-19 outbreak, since in mid 2019 it was reported that in the last year the unemployment of commercial premises in Costa Rica was on the rise, a behavior that was explained in part by the country's economic situation and by changes in consumer preferences.

Real Estate Market: Prices in the New Reality

May 2020

It is predicted that in Panama due to the health and economic crisis the inventory of available properties will increase, a situation that will put downward pressure on property prices and rents, affecting mainly the office and commercial space segment.

Directors of the Panamanian Association of Real Estate Brokers and Developers (Acobir) estimate that in the context of the health crisis resulting from the covid-19 outbreak, sales or rental prices in the local market could contract between 20% and 25%.

Rentals: Lower Occupancy, Lower Prices

May 2020

As a result of the crisis, the unemployment rate of commercial premises in Costa Rica rose from 8.81% to 9.86%, and the average price per square meter fell by 3%.

It is estimated that 20% of the stores located in the country's malls will not be able to open after the most critical phases of the covid-19 outbreak are overcome, according to Colliers' figures.

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