CAN WE UNITE THE OFF-PLAN REAL ESTATE SECTOR TO AVOID BANKRUPTCIES AND UNFINISHED DEVELOPMENTS?
The team behind developments.es has made a bold move during the Covid 19 crises.
They have been working full-time from home during their self isolation period, to design an open platform for all real estate agents on the Costa del Sol.
This will provide all agents with free access to updated property information including monitoring how developments are progressing. They feel this is the best way to help and support the local real estate industry, as we head into uncertain times.
“Tough times are ahead for all those involved in property development on the Costa del Sol. Even though we have had a lot of success as an agency specialised in new build properties, we still need everyone to join us in working more effectively, in order for the industry’s size and performance to continue, we cannot achieve this alone”, said Tor Hvas.
Since launching in 2017, the developments.es team have become one of the coast’s leading agencies through their transparent and innovative method of bringing new build property information to the market.
Access is no longer restricted to those working within their team, but accessible to all other agents, who choose to join them.
“We are basically sharing with everyone one of the main reasons for our success, in order to help all agents work effectively. This way we can all cut fees for similar services and sell more new build properties.
We want to assist the industry to recover quickly from this crisis” said Tor Hvas, CEO of New Build Properties, the company which created Developments.es
What is the outlook for the property development industry in 2020-21?
Many people look back at the last financial crisis in 2008 and the negative impacts it had on the building sector. Are we going to see skeleton projects being abandoned all over again, or has the industry learned something? We asked Tor Hvas for his perspective.
“A lot has changed since the last crises and the property development industry on the Costa del Sol today is nothing like the one that collapsed during the last financial crisis in 2008.
Our clients don’t usually request a mortgage for their property purchase, or they borrow a limited amount. These buyers are not short sighted investors who want to make a quick profit. They are investing in their long term well-being and happiness in life, and they will not be forced to sell, since their main reasons for buying have not changed.”
“On the developers’ side, the situation is also completely different. Banks and governments have learned their lesson and they are not funding projects that do not have the financial strengths to build from their own pockets. Project investors and funds might change their mind and terminate a project before it has started construction.
But the ones who are financially committed also have the strengths to complete their projects. The supply will be there, and the buyers’ interest for a new property will also be there, however how great the supply is, and guiding the buyers’ interest into actual and relevant opportunities will be for us to create”, explained Tor Hvas.
From Idea to solution in one month
Their idea is to simply to offer their comprehensive resources platform containing updated in-depth sales material for currently 3453 new build properties (in more than 300 projects) including freshly updated price lists, unbranded brochures, floor plans, construction process videos and photos, actual locations etc. to all agents
This will streamline and reduce costs of existing tools and enable more effective sales work, thereby supporting both developers and agents and the whole off-plan industry.
“When the borders reopen we must all be prepared to act fast and avoid those developers that are pulling the plug on projects and phases that have not started construction to limit their financial risks and potential losses.
I expect that many investors and funds supporting the developments will simply move attention to other less risky investment opportunities if the sales are not happening in the months following borders being re-opened”, declared the CEO Tor Hvas.