Real estate industry is at a complete standstill; COVID-19 affecting businesses
The real estate industry is at a complete standstill, Douglas Salt, Director of Frank Salt Real Estate told The Malta Independent. With the introduction of measures such as social distancing, real estate agents cannot show properties to potential buyers or people looking to rent, as owners are reluctant to allow people into their properties.
“We have been operating behind closed doors for some time now and have to cover huge payroll costs, rents and connectivity costs, with no income coming in whatsoever. We hope that the situation will recover in a shorter rather than longer period of time.”
Now that flights have been suspended and restaurants, cafes and bars are closed, the pandemic is impacting different sectors on the island. Real estate agencies depend highly on individuals seeking property and owners wanting to rent or sell, and this period of uncertainty has affected them drastically.
“Our consultants are mostly self-employed, so we are naturally concerned for them. We are
hoping that once this is over, our market would be resilient enough to carry on.”
CEO of Dhalia Real Estate Services, Alan Grima, echoed the same concerns. “Our main concerns are primarily the wellbeing of our people, both those who are self-employed as well as those on the payroll. The present situation has affected us badly, and we are constantly trying to identify ways to overcome challenges on a daily basis.” Grima said that while most agents are working from home, the situation is at a standstill and most owners are extremely reluctant to allow agents and their clients into their properties.
When asked what the predictions are for the property market, Grima said that it is difficult to provide any form of forecast, due to the current level of uncertainty.
Prime Minister Robert Abela held a meeting with representatives of the real estate industry and the Malta Developers Association yesterday. Abela said that the construction industry is vital and will play an important part in the economic recovery of the island once the virus passes.
The Prime Minister stressed that is it important that industry be improved so that it will not repeat the mistakes it has made in the past. Abela said: “Yes, we will face a difficult period, but we must help each other. Every sector is facing difficulties and everyone is trying their best to continue working.”
He appealed to all companies to keep their moral high and to help one another. “What we experienced in the past seven years, will come again and the government is here to support everyone. Many other sectors are struggling to cope with the current situation.”
One of the main types of businesses affected due to COVID-19 are restaurants, cafés, and bars. As most businesses are trying to adapt to the new situation, yet are still struggling. Baker Street is one such café which previously were busy serving customers breakfast and lunch throughout the day, and are now offering deliveries. Alexia Fleri Soler, owner of Baker Street, explains that whilst the café had to stop accepting clients inside, they have designed a new delivery menu which they personally deliver free of charge all over the island. “It has proved very difficult for such a small business like ours to survive with our current sales. We still have to pay full-time wages, rents, electricity and water bills as well as other overheads. We are still determined to try our very best to make things work.”
She said that whilst the new economic package is a big leap forward, the café will still need to try and continue selling deliveries to survive. “Just €800 per employee does not mean we are not out of the water, but it is a big help.”
A retail company that wishes to remain anonymous told this newsroom that currently both their local and international stores are closed. “Currently, we are keeping the moral high for our employees, and our primary aim is to keep people on-board, and to keep paying salaries.” The company said that the biggest issue is that there is a lot of uncertainty of when shops and businesses will resume operation once more. “Currently, it is not possible to make future plans since we have no clear indication of when this pandemic will end.” Regarding the government’s economic measures, the company highlighted that the measures are there to support businesses, but it is hard to say whether they will be enough, as it all depends on how long the pandemic will last.