Blog

Spring will come and so will happiness. Hold on. Life will get warmer. “ - Anita Krizzan

16/04/2020

We thought this quote was apt under the current times that we find ourselves in, more importantly, we wholly believe in the sentiment that we will see warmer times and an end to the surreal way of life that we have been dealt.

As first outlined nearly four weeks ago in our first Covid-19 update,we remain fully active and open for business. We continue to manage our lettings portfolio as is our obligation to our Landlords and our Tenants and All our Landlords will be receiving our circulars and will of course continue to receive their rents due as well as our support and services.

We have also advised previously that we will not spam you with continuous updates and we have been careful to avoid over egging our play with mail-shots.

A good indicator....

Over the past four weeks we have pushed hard to maintain a presence in the market, as well as assessing the conditions under Covid-19 and the lock-down.

Whereas we were expecting all “new business” to grind to a halt, we have been surprised with the general up take by applicants over recent weeks, post lock down. Our focus had been to maintain and manage all existing and pending sales in the pipeline and we are delighted that all have either completed or are set to do so in the coming weeks.We see this as a good indicator of the mindset in the market.We were hugely encouraged by the fact that our clients and applicants respected their positions and continued with their commitments; needless to say we have been guiding and advising through these uncertain times and provided the support that we have been recognized for over the past two decades.

Although clearly still too early to say, we are optimistic that Covid-19 will not adversely affect the market in the medium to long term. So far, applications to let and interest in our residential sales portfolio suggests that although the market is substantially quieter, there is movement andWE AREletting and selling properties, albeit under a rather heavy cloud of uncertainty.

The Market...

There is no question that the volume of interest has slowed down, to suggest otherwise would be foolhardy, but the fact that there is activity is a positive from our perspective and we want reassure you that we are working hard to maintain a real presence during these difficult times; importantly, we want to be in a solid position when we return to normality.

Prior to Covid-19, we had been warning of a slight over heating in the market in particular segments, these segments will no doubt be suffering the brunt of the impact of Covid-19;speculative markets will undoubtedly be the worst hitduring down turns, but our belief in thefour tiermarketwhich we have seen grow over the past two decades will, from our point of view, hold its own and will not (in our opinion) be dragged down by one segment of the market.

With the added fact that interest rates have been lowered, thereby providing cheaper access to borrowing, we have noticed some investors keen to jump into the market for the right deals, which do exist if you are looking at your medium to long term exposure. Over recent weeks we have entertained various portfolio investors in this regard.Opportunities WILL invariably present themselves and there are indeed applicants looking at these.

Our thanks...

Finally,and as already stated in previous circulars, we are thankful to Government in its handling of this crisis. Their steering and management to date has been nothing short of exceptional, in all aspects, but in particular, their steadfast grip and resolve in minimising the clear anxieties we all feel, from the personal to the fiscal. We say this with no agenda, but rather a show of support and thanks; and we do so with the firm belief that this will pass andwe will be stronger, wiser and better placed to emerge from this in the best possible form.

Moreover and as mentioned by the Minister for Financial Services, it will be our capacity to deal with this crisis in the manner that we are, that will earn us the respect of those seeking to invest and re-locate to Gibraltar as we see brighter days emerge,for it is the example we show during these difficult times that will instil confidence in our economy and way of life for the future.

We hope you are all staying safe and doing well and wish you the very best during these grey days.