The impact of COVID-19 on individuals, communities, and organisations is rapidly evolving. Aiming the maintenance and strengthening of connection with our long-distance customers, we have prepared a report that is willing to inform you about the way this crisis has affected Mykonos’ everyday life and foreshadow what is to come in the local real estate market.
The Global Impact of COVID-19 on investments
The global outlook has been clouded over by the COVID-19 crisis. Most investors were caught unprepared and have been surprised by how pervasively, and how quickly, the pandemic has spread. They are still trying to understand the economic and financial impacts of the crisis.
On the other hand, it is a great opportunity for them to secure assets to which they normally would not have access, while at the back of their minds they will still be concerned about the impact of the global recession.
Given that it will probably take a few months for investment activity to return to normal, it is strongly recommended to investors that they have to continue keeping a close view on the markets, trying to understand the motivations of sellers, and be able to take advantage of the arising opportunities.
Support Measures taken by the Greek government
The Greek government imposed severe social distancing measures at a much earlier stage of the epidemic than other southern European countries. For now, this swift reaction has helped the country to avoid the tragic healthcare crisis that richer states are facing.
Supported by the European Central Bank actions for the protection of the euro zone economy throughout the pandemic, Greece took action rather to push the resumption of work and production, and to maintain liquidity than to stimulate economic growth.
The impact of COVID-19 on Mykonos’ economy and everyday life
All tourism destinations it is expected to suffer for as long as travel restrictions continue, and Mykonos is no exception. However, with the right approach, this crisis can become an opportunity to move forward and create even more value!
The steps to be taken for the recovery of the local economy and market shall follow the 3 phases outlined below:
• Response to the crisis. In this phase economy deals with the present situation and manages continuity.
Given how quickly Greece responded to the outbreak, the country might be able to get back on its feet sooner than others. Its strong policy has instilled confidence in travellers and investors alike, reinforcing its safe haven status.
Mykonos, being the most popular Greek tourist destination, can only be favored by this national strategy.
• Recovery from the crisis. In this phase the economy reacts and emerges stronger.
The expected decline of this summer’s arrivals requires the solidarity of the local community that has to put the mission first and work more closely together for the support of activities that probably shall result losses at the end of the season.
It is estimated that during June the owners of the shopping stores, bars and restaurants will gradually start to operate and provide services under the condition that they will be allowed to do so.
It is estimated that the high privacy hospitality services provided in those luxury villas following the strict disinfection and hygiene’s protocols could attract the high-end visitors who approach the island by private jets. The reduced rental rates should be considered as inevitable even during the high season.
The outbreak of the crisis shall affect the hospitality sector through the decline of the hotel reservations. Therefore it shall be taken as granted that the hotel owners shall wait for the governmental resolutions about funding, VAT reduction, and loan agreements in order to reevaluate their profits/losses and make great decisions.
• Building the future. In this phase the economy redefines itself taking into consideration all emerging trends and structural changes.
COVID-19 is likely to accelerate fundamental and structural changes that were inevitable in any case—but are now likely to occur far faster than they would otherwise. Mykonians perceive this period as a good chance to redefine the business activity on the island. The setting of new balances in professional relationships and the correct utilisation of the resources could mitigate the frenetic investments and the island’s hyper-exploitation. This realisation might define the “next normal” and make a quality improvement for the next day.
Our role in future investments
Any period of volatility can create chances that investors can leverage if they are prepared. Speaking about real estate, the determined buyers even today can take advantage of opportunities and make deals. In DREAMYARD we strongly believe that we enter a proper period for effective negotiations with those sellers, who want to achieve quick sales.
Today, all around the world, businesses are learning to communicate, collaborate, and coordinate online. Virtual work and collaboration tools are likely to create a booming new market space.
Perfect is the enemy of good, especially during crises when prompt action is required. For that reason we remain in daily online touch with our customers, and we are looking forward to hear from them, update them with the latest news from Mykonos and inform them about the estimations of the professionals for the upcoming period.