Kazakh real estate companies are losing their clients due to COVID-19
Commercial property owners in Kazakhstan are losing their tenants due to the COVID-19 pandemic. Several companies adapted to remote working so much that they are willing to keep most of their employees working from home even after the end of the nationwide state of emergency. The member of the United Association of Realtors in Kazakhstan Yuliya Ketsko said that the landlords have to reduce the price to keep tenants.
“Many companies are switching to remote working due to the new conditions amidst the coronavirus outbreak. Therefore, large areas both production and office are vacated. In this case, experienced landlords, owners of the commercial real estate, by understanding the whole situation, are lowering prices, because due to the low interest rate they can attract new tenants to the emptied spaces. The current situation forced many landlords to reorganize due to the decrease in demand – they change their rental rates downward and those who don’t change their rates suffer losses,” Ketsko said.
However, this is not the only reason why experts predict a fall in demand for business estates rental.
“After the coronavirus quarantine, the companies, both large and small, started to reduce and revise their budget and move to lower-cost options. This applies to offices and warehouses, as well as rent for various industries. If the landlord is flexible and agrees to the conditions pricewise by lowering the rate, then the tenants don’t leave. However, often the landlord is not willing to change the price and make the discount, instead he offers to reduce the rental area or help to find other options at a lower rate,” Ketsko noted.
The companies, who managed to save capital during the nationwide state of emergency, now can choose more comfortable conditions for less money. Traditionally expensive districts are becoming more affordable. The requirements for infrastructure and maintenance of business real estate are increasing. As a result, it is the tenant who sets the terms in the real estate market now.