Real estate provides ‘a great deal of chance’ as pandemic harms properties

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Real estate presents 'a lot of opportunity' as pandemic hurts assets

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A view of East London from a bird’s-eye view. As the sun sets its radiance is caught on the high-rise buildings of Canary Wharf – the 2nd downtown of London.

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Opportunity is plentiful for financiers aiming to take on distressed property properties in the wake of the coronavirus pandemic, according to among London’s prime investor.

Thomas Balashev, creator and CEO of Montague Real Estate, stated property has actually been unduly hammered throughout the slump, developing chances for purchasers to make gains as the economy recuperates.

“I think it goes without saying that there will be a lot of opportunity,” Balashev informed CNBC’s “Squawk Box Asia” on Tuesday.

A various type of crisis

Unlike in the 2008 Financial Crisis, which was connected straight to the U.S. real estate market and made it possible for chances for some individuals to “get ahead of it,” the present recession captured the marketplace off guard, injuring otherwise sound properties, 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 international home market has actually been struck hard this year by the twin ills of subsiding need for business property, like workplaces and retail area, and moving home needs, as house owners change cities for the residential areas.

Still, there are offers to be had throughout the world, firmly insisted Balashev, who just recently signed up with a Luxembourg-based fund concentrated on getting distressed property properties in Europe, Asia and the U.K.

If you’re a liquid purchaser and you have actually got deep pockets, there’s going to be a big wide variety of chance.

Thomas Balashev

CEO, Montague Real Estate

“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 deals primarily in off-market deals in the prime- and super-prime home markets, has actually seen an uptick in enquires from financiers this year, stated Balashev. That consists of a 200% to 300% year-on-year boost in queries from financiers in Asia thinking about the U.K.

“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.