A view from the aerial view of East London. Its glow is captured in the skyscrapers of Canary Wharf, London’s second commercial district, as the sun sets.
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In the wake of the corona virus outbreak, one of London’s leading real estate investors says investors who want to seize miserable real estate assets are more likely.
Thomas Balashev, founder and CEO of Montek Real Estate, says real estate has been hit unnecessarily during the downturn, creating opportunities for buyers to make a profit as the economy recovers.
“I think it goes without saying that there will be a lot of opportunities,” Balashev told CNBC’s “Squawk Box Asia” on Tuesday.
A different kind of crisis
Unlike the financial crisis of 2008, it was directly linked to the U.S. housing market and created opportunities for some to “go further than that,” while the current economic crisis has pushed the market out of safety, otherwise sound assets will be affected, Balashev said.
“If you look at the way the epidemic has been handled, it has taken many by surprise, both politically and economically, with its catastrophic consequences,” he said. “So assets that are not really stressful, should not have had such a significant drop in value, have suddenly come to market.”
The global property market has been hit hard this year by dual risks, such as declining homeowners moving cities to suburbs, declining demand for commercial real estate, and shifting residential property demands.
However, there are agreements to be made around the world, Balashev, who recently joined the Luxembourg-based fund, focused on acquiring miserable real estate assets in Europe, Asia and the UK.
If you are a liquid buyer and you have got deep pockets, there are plenty of opportunities.
Thomas Balashev
CEO, Montek Real Estate
“If you are a liquid buyer, if you get in deep pockets, there will be plenty of opportunities, not just on any, stable continent,” he said. “I think this is a great time for real estate worldwide.”
In fact, London-based Montek Real Estate, which deals mainly with offshore transactions in major and super-prime property markets, has seen an increase in inquiries from investors this year, Balashev said. This includes an increase of 200% to 300% per year in inquiries from investors in Asia interested in the UK
“We must take this as a positive sign that those in the international market still see London as a safe haven,” he said.