Why do real estate funds prove to be mostly crisis-proof?

However, we are not communicating that there is a recovery, as it is very difficult at this time to create any prognosis for the future.

Several factors and variables have to be analysed, such as how long the closure of hotels, restaurants, shopping centres, industries, offices will last, because the income from the funds comes from the tenants, as does the profit for the distribution of dividends to investors.  Therefore, the decisive factor will be the financial aid from the state, from the banks and from subventions to strengthen the cash flow of companies and individuals. 

And how many companies and jobs will survive the crisis? Bearing in mind that most of the properties in the funds´ portfolio are office, retail and residential properties. It is necessary for each one of us to understand the great importance of fulfilling the duty to pay rents, so that the funds can continue to show good numbers and remain active in the acquisition and arrangement of real estate for rent.

Conclusion: Real estate continues to be an excellent investment option, both institutionally, in the case of funds, or privately, in the case of individual acquisition. However, it also and above all depends on the assumption of your contractual commitments to pay your rent or your loan.  Because otherwise, we will all suffer the consequences of a collapsing economy and an unprecedented increase in unemployment.

Text: Paulo Lopes