Already the second quarantine extension, first until April 24, and now until May 11 was expected. How will this affect the construction market? Non-systemic developers who do not have their own financial resources due to the lack of cash inflows will begin to suspend, but large players will continue to build even in the conditions of a quarantine extension.
A state of emergency can stop the construction market globally – after that it will be difficult to restart. And if this story lasts a long time, then many construction projects run the risk of becoming unfinished.
The entire construction chain – from the production of building materials, delivery to the site, sales, purchase, installation and to pouring concrete – has already slowed down. But despite this, everyone is trying to continue construction, especially companies that work on signed contracts and advances received – they must fulfill their contractual obligations, few people want to announce force majeure now. The delays that are now, so far, are within the framework of those permissible deviations that are already stably occurring at construction sites.
Responsible companies on a public plane communicate with their customers, customers, and the market that their process does not stop. They show that they carry out all the necessary measures: measure the temperature, equip employees in protective equipment, management sits on a remote site, no one gathers in groups, everything is at a distance. This entire communication is very useful and allows you to show that the economy is developing even under quarantine.
It is already obvious that the projects that are at the initial stage of construction will definitely undergo a reconception. Now we see an increase in demand for objects that are somehow related to health and a healthy way of life – they are located in a clean area, of low floors, are built from environmentally friendly materials using modern engineering systems, they have the opportunity to self-insulate, but not reduce level of comfort.
At the same time, people believed that they would count their money. You can again, for example, return the garbage chutes in order not to go out in the future, or lay tunnels to a nearby store, but all these chips should be justified from an economic point of view. During the quarantine period, a large number of people were left without work or their salaries were adjusted, therefore, despite the enormous pent-up demand, buyers will turn their attention to objects in which the notorious price / quality ratio is observed.
Andriy Ryzhykov, CEO and managing partner of the development company DC Evolution