COVID-19 PROPERTY MANAGEMENT IMPACT - January 2021 - MVGM
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COVID-19 PROPERTY MANAGEMENT IMPACT January 2021
Dear client, As we have been doing in previous months, we are pleased to share with you the update publication regarding the regulations, measures and effects that Covid-19 crisis is causing, and make available again our impressions, analysis and conclusions on its the evolution. Despite restrictions adopted since November in Europe to prevent a surge in cases after the Christmas holidays, Europe is already in the third wave. The new, more contagious British strain of COVID-19 has prompted several countries to increase restrictions. Commercial activity is struggling; the restrictions are increasing and stores, cinemas, restaurants continue to make sure security measures are taken. There is a divergence between the evolution of inflows and sales both over time and in terms of activities. In other words, there is a greater decrease in inflows than in sales and this is due to the fact that purchases are made in a much more accurate way. As far as office activity is concerned, telework continues to be the preferred option in most of the companies, and some of them are rethinking spaces, needs and their future. As we have said in previous publications, we are facing a new reflection on the economic or structural change. The logistics sector continues to grow, companies are also rethinking spaces and expanding sqm to be able to cover the demand increase. The residential market remains uncertain as to the real effects of the Covid-19 crisis, based on the consequences induced in the labour market, among other variables, with an impact on this segment. The tourism and hotel sector has been one of the most affected, and this is why they are going through a process of reinventing business as it is the way forward. The "Safe Tourism" quality seal, aims to alleviate tourists' fears. It guarantees hygiene protocols and a low risk of infection. Safety and hygiene have become critical, and hotels must consider this additional operational cost as an investment in their business, which will help them acquire more customers and move faster on the road to recovery. We cannot neglect the importance of maintaining prevention measures, and the responsibility of all to ensure a smooth return to normalcy. Recovery depends on everyone, in every sector, but to do so we must be resilient, accept the challenges that arise, and seize every opportunity that comes our way. We hope that this report will be useful to you, and we wish you much encouragement in this new phase that we are starting. On behalf of MVGM International, Menno van der Horst Maarten de Haas Itziar Silva López Co-owner Managing Director Europe Head of Marketing & Communications, Spain Member of the Board Member of the Board MVGM Spain
EMEA
COVID-19 in Belgium
As of 27th January 2021 13th March 2020
1st restrictions’ announcement
15th April 2020
Measures are extended until 3rd May.
•Suspension of classes in schools, kindergartens until Eastern • DIY stores and plant nurseries might reopen, still
Cases: 696.642 (tested) holiday (5th April). Nurseries remain open & schools must respecting social distancing and clients' limitations per
organize day care centers for people that must keep working. shop. Some container parks are also allowed to open from
Deaths: 20.879 Monday 20th April.
•Only first necessities stores remain open full time: pharmacies,
food stores, pet stores.
Confirmed daily cases evolution •Restaurants and bars must close from Friday 13th midnight, 21st April 2020
except for take-away.
•Other stores must close during weekends only.
• Mc Donald reopens its Drive service from midday,
generating long queues.
17th March 2020
23rd April 2020
2nd restrictions’ announcement to start from 18th mid-day
• Burger King and Quick will reopen their Drive service.
• All stores have to close, except for 1st necessities stores:
pharmacies, food stores, pet stores, bookstores, night shops (until
4th May 2020
10 p.m.) and hairdressers (one client at a time)
B2B offices can reopen, organizing safety for workers
• Restaurants can only offer delivery or takeout food
and still privileging work at home
• Ban on public gatherings
• Companies must organize teleworking when possible
• Confinement: people are required to stay home and are only 11th May 2020
allowed to go out for these purposes: go to work (when no other Non-essential stores might reopen
option), the food store, the doctor, the pharmacy, the Post, the
bank, the fuel station, assist weaker people. 18th May 2020
•Distances are to keep between people (at least 1,5meters) Hairdressers/beauty salons might reopen. Some recreational
Covid related deaths evolution
•Limitations of number of clients per opened shop activities are allowed (museum, animal parks).
Schools reopened for some classes
20th March 2020
Closing the borders for non-essential travels 22nd May 2020
Youth movement camps and summer internships allowed during
23rd March 2020 summer under conditions (maximum 50 persons).
• Hairdressers must close as well
27th May 2020
27th March 2020 The outdoor play areas allowed to reopen from Wednesday 27
Measures are extended until at least 19th April and May for children up to 12 years old included
might be extended again until 3rd of May.
COVID-19 in Belgium
As of 27th January 2021
24th June 2020 • The closing time of night shops allowed to 10 p.m.
• 15 people a week can be seen by each citizen. • Horeca customers are asked to leave a means of contact at the establishment so that they can be quickly
notified in the event of an epidemiological outbreak. This information will be deleted after 14 days and cannot
• Swimming pools and wellness centers, amusement parks and outdoor playgrounds, be used for any purpose other than epidemic control.
theaters and cinemas, casinos and reception rooms for 50 people will be able to open
from July 1 • Six "golden rules" still apply: Observe hygiene measures, Promote outdoor activities, Remain vigilant towards
vulnerable people, Keep a safe distance (1.50m), Limit contacts to 15 people per week, Limit gatherings to 15
• Public events allowed to host 200 people indoor and 400 people outdoor as long as the people
safety rules are respected.
• Each citizen should be able to list all the people with whom close contact took place during the week.
• From July 1 shopping with people from our "bubble" and without time limit is allowed. For
markets there is no longer any restriction on the number of stalls, but the safety rules • "Color codes" are setup for people travelling:
must be respected. • RED: Departure for these areas is banned. Return from these areas will be treated as "high risk
• The closing time of night shops will be brought forward to 10 p.m. contacts", which will mean that they will be required to maintain a quarantine of 14 days and be
tested
• ORANGE: Departure for these areas, is strongly unadvised. Return from these areas are asked to
23rd July 2020 maintain a quarantine and be tested
• Reduction to 5 people a week that can be seen by a family • GREEN: no restriction
• 10 people max allowed for private events (even for weddings)
• Public events allowed to host 100 people indoor and 200 people outdoor if the safety
rules are respected. 23rd September 2020
• Fairs and exhibitions can take place from September 1, under strict conditions and
depending on the evolution of the epidemic • 5 people a week that can be seen by a family in their home
• Wearing a mask is also required in markets, flea markets and fairgrounds, in shopping • Citizens cannot see more than 10 people in the same place, at the same time and respecting social distancing
streets and any private or public place with high traffic as defined by local authorities, in all • Quarantine is reduced from 14 to 7 days
public buildings for parts accessible to the public, in HoReCa establishments, except when • Wearing a mask is no longer generalized outdoor, only in crowded areas where a safe distance cannot be kept.
people are seated at their tables. • There is now no limit as to the number of people (always with respect to the safety distance) and the time
• Wearing a mask is strongly recommended in all other cases, especially in situations where allotted for shopping.
the safety distances could not be respected. • Work at home is still recommended.
COVID-19 in Belgium
As of 27th January 2021
2nd November 2020 – GENERAL LOCKDOWN
6th October 2020 • Non-essential stores must close, same for restaurants (click & collect and delivery allowed)
• Bars & cafés must close at 11 P.M. and can receive maximum 4 people per table. • 1 guest allowed at a time at home
• 4 people can be invited by a family in their home, keeping safe distance. Close contacts are • 1 single close contact allowed per person (besides for people living alone, they can have 2 close contacts)
limited to 3 people per month beside family. • School suspended until mid-November. From mid-November, Higher Schools organize online lessons and
• Outside private activities limited to 4 people. lessons at school (part time presential classes).
• Work at home is recommended.
1st December 2020
8th October 2020 • Non-essential stores allowed to reopen, respecting strict sanitary conditions
• Cafés & bars must close (restaurants remain open) • Shopping must be done alone, for maximum 30 minutes per shop.
• 1 client allowed per 10 sqm
13th October 2020 • +400sqm shops must have an access control
• Quarantine is required for people coming back from a +48 hours travel abroad.
• Indoor spots prohibited for +12 years old
• 2 Provinces install a curfew from 1A.M. to 6A.M.
8th January 2021
• Vaccination has started
23rd October 2020 • Work at home still required
• General night-time lockdown, curfew extended from 10 P.M. to 6A.M. • Non-essential travels are highly discouraged
• Work at home is required
• 2 people maximum at a time allowed to shop together (children –12 years old are not 22nd January 2021
concerned)
• Vaccination has started
• Higher schools organize online lessons
• Work at home still required
• Shops must close at 8 P.M. maximum
• Non-essential travels are prohibited, only essential travels are allowed (for family & humanitarian reasons,
people living on the boarder, for work,…)
COVID-19 in Belgium
RETAIL MANAGEMENT PROPERTY MANAGEMENT
• From 18/03 to 11/05 shops were closed
• Arrangements made for ventilation and air conditioning installations in office buildings in order to
• From 18/03 to 08/06 restaurants were closed prevent the spread of the coronavirus disease in workplaces
• From 2/11 to 1/12 shops were closed
• Since 2/11 restaurants remain closed • On site-signage
• Maximum users in elevators, places and indications
What's the situation now?
Shops are open, allowing 1 client per 10sqm and shopping must be done alone, with a • Wearing a mask is obligatory in all common areas
limit of 30 minutes per shop. • Not a lot of people came back to offices – work at home is required
Restaurants & bar are closed (delivery and take-away allowed)
COVID-19 in Czech Republic
As of 27th January 2021
Cases: 956 155 1st October 2020
Recovered: 841 518 the State of emergency was declared
Deaths: 15 791 • The Government has approved a proposal to commence the second State of emergency in 2020 for 30 days, from 5th
October until 4th November 2020.
2nd October 2020
1st restrictions’ announcement
Development of number of infected people • Full-time education in tertiary educational facilities, as well as universities, facilities specialized in language education and
activities organized by these subjects are forbidden.
• All sport, cultural, religious and other activities both public and private encompassing more than 10 persons inside and 20
persons outside are forbidden. There is number of local exceptions based on local development of number of infected people.
• Further restrictions are expected based on daily changes.
13th October 2020
• The government decided to lock all schools including basic schools, restaurants, fitness centres, swimming pools, student
housing for CZ students, theatres, cinemas, concerts, sport matches (individual as well as teams), all children casual
activities.
• The groups are limited on 6 people outside as well as inside. Shopping just in 2-member-group.
• These measures were in force till end of November 2020.
COVID-19 in Czech Republic
As of 27th January 2021
Cases: 956 155
Recovered: 841 518
Deaths: 15 791
Tested: PCR - 4 487 142
Antigen - 1 452 728
Development of number of tested people
COVID-19 in Czech Republic Only shops carrying essential goods -mainly: pharmacies, grocery stores, drugstores, pet stores,
opticians, newsagents, e-shop and Zásilkovna pickup points, laundromats and drycleaners,
towing services and carwashes, gas stations, gardening shops, florists, mobile, computer and
technical services, locksmiths, hardware stores, household goods, funeral homes.
Retail – shopping malls and centres The shops that are allowed to stay open will be open Monday to Saturday 5:00-20:59.
Only stores with the basics remain open in shopping centres. The conditions stated in On Sundays they must be CLOSED and during the public holiday too. Only gas stations,
the Retail topic apply to the operators of individual stores in shopping malls, you will also pharmacies, shops at airports and train stations and shops at medical facilities are allowed to be
find a list of stores that may remain open. And which hygienic and operational measures open on Sundays. All shops that are not listed as exemptions have to be closed. Such as clothes
must be observed. and shoe shops, bookstores, jewelry shops, stationery shops, hobby markets, shops selling
furniture and flooring and shops selling electronics.
People can enter the shops and shopping centres by a maximum of 2 people. Members of
one household are exempt from this rule (typically parents with children). If you go shopping, follow the hygienic rules (Hygiene section). For the whole duration of
shopping, it is necessary to wear a mask and to social distance (especially when waiting in
The operator of the shopping center must prevent mass gatherings in all places where this a queue). Before entering the shop, disinfect your hands, and repeat after returning home. For
can be expected, e.g entrances from underground garages, areas in front of elevators, more protection, shopping in gloves can be recommended. Don't touch any surfaces
escalators, travellers, toilets, etc., as well as rest areas (benches, chairs, seats, ...) . unnecessarily and use gloves when picking out fruit, vegetables or baked goods.
The operator will also ensure: If you are part of a higher risk group or are in quarantine (isolation), ask a neighbor, relative or
maximum possible air circulation with outdoor air intake (ventilation or air conditioning) friend to do your shopping. If this isn't possible, you can reach out to volunteers. Help and
without air recirculation in the building, deliveries to high-risk groups and the infected), who will be happy to help. You can also order
online and get your shopping delivered to your doorstep.
at least one person who oversees compliance and reminds customers and others to follow
the rules, Shopping centers can only be entered in groups of 2. The exemption being children under 15
accompanied by an adult from the same household (typically parents, grandparents or siblings
that organizational instructions are communicated to customers and other persons, in living with the child). Reservation of 15 square meters for one customer is mandatory for any
particular in the form of information boards, leaflets, screens, radio, etc., shop or service establishments. Customers also have to keep a 2-meter distance from each
other. For example, in an establishment with an area of 29 square meters can be only one
visible marking of the instruction to observe the spacing of 2 m between persons on publicly customer present at a time. The only exception is being accompanied by a child younger than
accessible areas in the shopping center (eg in the form of infographics, spots in the radio of 15 years of age. Mandatory for shops and service establishment is also the management of
the center, etc.). queues. This regulation applies to the inner area and also areas outside the establishment.
Wi-Fi must be turned off. Children's corners must be closed. Try to shop online. If you enter a shop, follow all hygienic measures, social distance and pay by
Food corners cannot be opened in shopping centres with a sales area exceeding 5,000 m2. card. We have to shop but it is a place where we encounter a lot of people, so please, be
Only the dispensing window can be open under the same conditions as other restaurants, responsible. You are protecting yourself and others.
they can also use the courier services.COVID-19 in Czech Republic
Accomodation Business
All accommodation services are generally prohibited. Private and recreational stays are The government calls upon all employers for whom the nature of their work and the operating
currently not possible. conditions allow to agree with their employees to work from home. It also recommends
supporting holidays and paid leave for employees, or other instruments specified in the
Accommodation services can be provided only to persons for the purpose of a profession, or collective agreement. It also calls for restrictions on the performance of work that is not
business and other similar activity, whom was ordered to work under the Crisis Act, important for maintaining the employer's activities. The workplace is one of the most common
foreigners until they are able to leave the Czech Republic and foreigners with a work permit places of infection, as there is a large concentration of people from different backgrounds for
in the territory of the Czech Republic, whose been ordered isolation or quarantine, whose a long period of time.
accommodation has been arranged by the state, a territorial self-governing unit, also bodies
established by the units, for the purpose of releasing the capacities of providers of health or Work from home is an effective tool to prevent mixing of people with a high risk of infection. If
social services, or also for providing accommodation for homeless persons, in order to possible, stay home and work from there. The government has instructed all employers to agree
complete the accommodation started before the entry of this measure. with all employees on working remotely if possible.
If the accommodation facilities are operating because of the above exceptions, it is Wearing a face mask
necessary to wear a face mask in all common areas. When staying in, follow the increased
hygiene rules and, if possible, stay mostly in your hotel room. The extraordinary measures issued by the Ministry of Health the state obligation to wear a face
mask. A fine of up to CZK 10,000 can be imposed on the spot for violating these measures. A fine
Hotel operators must regularly disinfect all areas (especially handles, corridors, railings, lifts, can be imposed on the spot or the matter can be referred to administrative proceedings. You
toilets, etc.). It is also important to take extra care to clean the rooms and handle towels can find the rules on face masks in the Face mask section.
and bedding. This will significantly reduce the risk of infection (for both residents and
employees). There is a chance for us to return to the hotels soon, if we follow these Penalties result from Act No. 258/2000 Sb., on the protection of public health(§ 92n (1) (b) of
measures. this Act) and Act No. 250/2016 Sb. on the liability for offenses and proceedings concerning
them (§ 91 of this Act).
Exemption applies to the restaurants in accommodation establishments if they provide
catering only for accommodated guests. They can stay open from 5 AM until 8:59 PM. At Violation of the governmental crisis measures
this time, they can also have a dispensing window and sell food and drinks to the public. Most of the current restrictions fall under the crisis measures of the government and violating
These windows must follow the same rules as those operated by catering establishment them could lead to a fine of up to CZK 20,000.
intended for the public.
The penalties are governed by this legislation. The penalties result from Act No. 240/2000
Sb., on Crisis Management and Amendments to Certain Acts (Crisis Act)(§ 34 (1) (a) of this Act).COVID-19 in Czech Republic Children and students In-person participation in classes is prohibited (excepting students in the first and second grade of primary school). For the rest, schooling must be held online. Participation in distance learning is compulsory for pupils. In the case of compulsory school attendance, it is necessary to apologize within 3 working days. For students of higher education, we recommend following the instructions of the study department and individual teachers. If a student or pupil does not have the necessary technology to complete this type of teaching, they should ask their educational institution for help. In the case of exhausted school capacities, we recommend contacting non-profit organizations.
COVID-19 in Germany
As of 27th January 2021
Summer months 2020
Restrictions reduced, but travel warnings on high level
Cases: 2,164,000 • After the infection rate reduced over time a lot, the restrictions have been relaxed all over Germany. More people are
Deaths: 53,619 allowed to meet, small events as concerts are allowed, etc. but always with strong hygiene concepts.
Vaccinations: 50.614 • Travel warnings to many countries were on a high level, some countries were forbidden to travel to. After returning from
such countries, people are forced to do a Covid-19-test immediately and to stay in a 14-days quarantine.
Total Infections and Deaths
• School and Kindergarden started full service after the summer holidays with special regulations for schools (duty to wear
2500000 masks, etc.). Some had to close down shortly after due to Corona infections.
2250000 • The infection rate increased strongly after travelers returned from holidays in some parts of Germany. The regions reacted
2000000
promptly, and the infection rates did not increase more.
1750000
1500000
• All bigger events and city events stay forbidden until min. end of 2020, no open shopping Sundays or late-night shopping.
1250000
Max. 50 people are allowed for private celebrations outside and 25 inside. Events depend on the location, concept and kind
1000000 of event. E.g. Concerts can only be with seats and little number of visitors. Christmas markets have already been cancelled in
750000 several cities.
500000
250000
0
01. Sep
12. Sep
23. Sep
25. Jan '20
05. Feb
16. Feb
27. Feb
05. Jun
16. Jun
27. Jun
08. Jul
19. Jul
30. Jul
04. Okt
15. Okt
26. Okt
09. Mär
20. Mär
31. Mär
03. Mai
14. Mai
25. Mai
11. Apr
22. Apr
10. Aug
21. Aug
06. Nov
17. Nov
28. Nov
09. Dez
20. Dez
31. Dez
11. Jan
22. Jan
Autumn 2020
Restrictions again extended as infections started rising high again
Infections Deaths • Stricter contact restrictions (max. 5 people in general)
• Duty to wear masks in public in city centers, public transport and all shops
Vaccination rate
• Schools and kindergarden stay open
120,000
• Fitness Studios closed again
100,000
80,000
• Events are again forbidden, only very small with very strict hygiene concepts can be done, but as well only until November.
60,000
40,000
20,000
0
27. 28. 29. 30. 31. 01. 02. 03. 04. 05. 06. 07. 08. 09. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26.
DezDezDezDezDez Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan
1.Vaccination 2.VaccinationCOVID-19 in Germany December 2020 January 2021 Lockdown and strong regulations on Christmas and New Year’s Eve Lockdown extended • All Christmas Markets have been cancelled • As infections did not decrease enough, the lockdown has been extended until min. • A curfew was enforced for all areas with high incidents between 9.00pm and 5.00am, on 14.02.2021 Christmas only up from 10.00pm, New Year’s Eve 9.00pm • Duty to wear medical or FFP2 masks in public transport and all shops • On Christmas and Silvester only families may meet with max. 5 persons and two households • Companies have to enforce and support Homeoffice in all possible areas • Ban on gathering outside on Silvester, forbidden to sell fireworks and advice not to use any. • Restrictions on meeting people: only the own household with max. one other person. • Lockdown up from 14.12.2020 (restaurants, shops, hairdressers, fitness studios, zoos, Contacts have to be kept as little as possible. museums, etc. closed until min. 10.01.2021) • Schools stay closed or have no mandatory attendance. Home schooling, online classes have • Sport events without public, doing sport is only allowed alone or with one other person or to be practiced. Same for kindergarden, only emergency care has to be provided in both. with the own household. • Vaccinations started for the elderly as well as nursery professionals and hospitals. • Religious ceremonies can be hold with strong hygiene restrictions and max. 10 persons.
COVID-19 in Germany OFFICE
RETAIL • Office remains the most popular asset class for investors in Europe. The
reintroduction of the lockdown has impacted leasing activities, but this is
expected to recover in the second half of 2021. We expect a moderate increase in
After the “first wave” of Covid-19 in spring it came to a regeneration of retail in mid of and in vacancy rates, which is expected to be limited by a limited supply of new space in
autumn 2020. With the “second wave” in December and then stronger government closing rules the main markets. Landlords are more likely to work with incentives to offer
the business, esp. the important Christmas business dropped down. The further shop closings tenants benefits. This is where different types of refurbishments and additional
until mid. of February, possibly longer, makes a robust forecast difficult. Some retailers go into rent-free periods come into play, furthermore not too much relocation behavior is
insolvency, esp. those without a multichannel sales concept. This development will change the expected. Co-working strategies by companies will weigh on the outlook for rental
stationary retail faster than before Covid-19 influence. The government help program will be growth overall.
essential for the future of many retailers and gastro concepts. Harder concerned is the fashion
retail, because reasons for fashion shopping are missing: no holiday travels, no big events or • Since 27th January 2021 the new “Home Office regulation” is in place. It obliges
family celebrations, no business clothes because of homework. The government strengthened the employers to offer home office for all employees where possible due to their
homework appeal. This also has significant effects on the gastronomy. The travel industry is still position and work. This might lead companies to think about hybrid office
broken. Big players like TUI need government support. The big retail player like the department solutions with co-working spaces and a high rate of home office which might lead
store “Galeria Karstadt-Kaufhof” is again under pressure, already acting under protective shield to a further increase of vacancies of rental areas.
proceeding.
Frequencies: Shopping centers, as far they offer a good supplier portfolio and a trustable,
supervised hygiene concept, can score in confidence to the customers. But frequencies dropped INDUSTRIAL
significantly.
• As industrial properties, especially logistics are still highly needed and requested
Turnover: Since Dec. the turnover dropped significantly. Tenants are in dialog with the landlords
due to an increased storage volume and e-commerce rate, the rents and sales
concerning the “second wave”-effect. Beside the government help program they now can
prices have increased strongly within 2020. With a transaction volume of about
negotiate about rent reduction by a new decree and under certain conditions.
8.74 Mrd. € it raised over the top limit of 2017.
• The request on logistics rental areas is still high, even outside of the urban centers
as well as in border regions to neighbor countries. Especially the e-commerce and
food logistics have signed a significant increase.
• Due to the lockdown up from mid of December, the e-commerce and delivery
services have noted an increase again which has an immediate effect on the
industrial properties market.COVID-19 in Luxemburg
As of 25th January 2021 RETAIL
Until further notice
• Retail is the sector most affected and
The Government has declared the state of especially the HORECA. Major fashion brands
Cases: 49 704 closed in the high street of the city center and
curfew.
it’s the case for all districts. Retailers and
Vaccination: 3 233 people have been vaccinated
Shopping centers have postponed their
since 18th January. expansion projects.
Deaths: 562 • Between 11:00 PM to 6:00 AM, The movement
of people on public roads is prohibited. • Almost every tenant has requested a discount
or a cancellation of the rent.
General
. situation
• The rent level average decreases from 15% to
• All Businesses have reopened except the
20% in Luxemburg city center.
HORECA sector which remain closed until 21st
February (TBC).
OFFICE
• The companies continue recommending
• Hotels remain opened and although the homeworking. We note that 70% of workers
restaurants and bars are closed to the public, have been working from home since the
room service and take-away are available. start of the pandemic.
• Awareness campaign continues and
Test Covid-19 vaccination campaign has started since 6th INDUSTRIAL
January. • The warehouses are impacted in their
development due to tenants postponing
their projects and orders.COVID-19 in Luxemburg
The deconfinement strategy in 3 phases, consists of:
15th April 2020 • Protect particularly vulnerable groups;
• Implement a gradual exit from confinement in phases sufficiently spaced from each other;
The Council of Government decided the guidelines
for a deconfinement strategy balanced between • Ensure, at all times, sufficient hospital capacities in normal and intensive care to take care of serious cases in health
the imperatives of public health and the psycho- establishments;
social and economic aspects linked to the current • Empowering the population and eliminating as much as possible the risk of uncontrolled spread by maintaining, or even
confinement : reinforcing, barrier gestures to be observed in any place where people gather;
• Put in place preventive measures at work;
In the Grand Duchy, the rate of new infections
• Ensure the isolation and close monitoring of new cases of infection;
shows a downward trend and thus reflects the
effect sought by the containment measures • Develop testing capacities and support research, in particular with regard to serological tests intended to measure the
implemented on March 16th, 2020. acquired immunity of the population.
However, the government has decided to only lift it
careful containment measures.
The resumption of activities can therefore only be done in successive phases and well thought out in terms of impact. The
decision to start a phase is taken by the government on the proposal of the Prime Minister and the Minister of Health, on the
basis of monitoring of the general situation, an assessment of the number of newly infected in the population and '' an
estimate of available hospital capacity in the short and medium term.
It is further understood that the Prime Minister and the Minister of Health may submit to the Government Council at any time a
proposal to reintroduce more stringent containment measures when, on the basis of monitoring the development of the
situation, he hospital capacity is likely to reach a level of criticality which calls into question good patient care.
It is important to note that any resumption of activities will be accompanied by very strict barrier gestures and
supplemented by the compulsory wearing of a mask or any other device allowing the nose and mouth to be covered for
situations of interpersonal contact if the distance from sanitary security 2 meters cannot be guaranteed.COVID-19 in Luxemburg
Scenario of deconfinement in phases : RETAIL
HORECA sector is still and always impacted directly : For the Government, it is
Phase 1 – reopening of construction sites (indicative date April 20, 2020) premature to give a detailed opinion on the lifting of restrictions on this sector.
The first phase would therefore cover the following activities: 75% of tenants requested discount or cancellation of the rent during the containment
period. Each demand was analyzed case by case by the owner.
• Reopening of construction sites;
• Educational assistance and assistance activities (outpatient child and OFFICE
family assistance services, offers from specialized psycho-pedagogical
The buildings remain empty because the Government has encouraged the Companies,
competence centers and measures to support student at risk of dropout);
Businesses and Governments to continue to promote homeworking throughout the
• Activities of gardeners and landscapers; course of containment.
• Trade whose main activity is DIY;
• Reopening of recycling parks. INDUSTRIAL
All construction sites start their reopening in following deconfinement strategy instructions.
This list will be completed on May 4 by the resumption of the final classes, as
well as internships and practical work at the level of BTS and the university.
Before Wednesday 22nd April 2020 : Free masks distribution
Phase 2 - resumption of secondary education (indicative date 11 May 2020 Organised jointly by the Government, the CCSS, Post Luxembourg and the Chamber of
– TBC by the Government) Commerce, will make possible to equip some 60,000 companies in all sectors of activity.
Representing three quarters of the national workforce, these 60,000 companies will receive
some 2 million masks.
Phase 3 - resumption of basic education as well as childcare facilities
(indicative date 25 May 2020 – TBC by the Government)COVID-19 in Luxemburg
RETAIL
HORECA sector is still and always impacted directly :
Shops reopened on May 11, "with some exceptions". Those of personal care
(hairdresser, barber ...) can reopen but only with appointment, to avoid the
Scenario of deconfinement in phases : expectations of several customers. The remaining HORECA sector has to wait the next
phase.
Phase 1 – April 20th, 2020
OFFICE
The buildings remain unoccupied because the Government has encouraged the
Phase 2 – May 11st, 2020 Companies, Businesses and Governments to continue to promote homeworking
throughout phase 2.
The second phase would therefore cover the following activities:
• Shops, hairdressers, and beauty salons is allowed to reopen;
INDUSTRIAL
• People allowed to socialize with friends and family again; All construction sites start their reopening in following deconfinement strategy instructions.
• Distribution of 50 masks each;
• Reopening of secondary education.
Before Wednesday 24th May 2020 : 50 free masks distribution per person
The Prime Minister declared that 50 masks per person (for those over 16 years old) will be
Phase 3 - resumption of basic education as well as childcare facilities – distributed by the army and the post, cross-border workers coming to work in Luxembourg
May 25th, 2020 will also receive them.
The ministers insisted on the barrier gestures, wearing a mask, social distancing are more
relevant than ever, at the risk of seeing the number of people affected by the virus rise again
and having to take more stringent measures.COVID-19 in Luxemburg
RETAIL
HORECA sector can reopened from 29th May with strict measures regarding distances
Scenario of deconfinement in phases : and barrier gestures.
Phase 1 - April 20th, 2020 The Government has strengthened its strategy to help retail sector.
Phase 2 - May 11st, 2020
OFFICE
The buildings reopened also with the strict measures regarding distances and barrier
Phase 3 - May 25th, 2020 gestures. The Companies and Businesses have to continue to promote homeworking.
The second phase would therefore cover the following activities:
• Reopening of HORECA sector from 29th May; INDUSTRIAL
• People allowed to socialize with friends and family (20 people max); All construction sites have reopened.
• Reopening of basic education as well as crèches and childcare facilities.
At today
Everything has reopened in compliance with the measures imposed by the
government concerning security and social distance actions.COVID-19 in Poland
As of 25th of January 2021
12th March 2020 28th March 2020
Declaration of state of epidemiological emergency Parliament passes and the president signs the act called ‘Anti-
crisis Shield’ which specify solutions regarding prevention,
Cases: 1 478 119 Suspension of classes in schools, kindergartens, nurseries counteracting and fight COVID-19 and other contagious
(e-learning) diseases
Recovered: 1 237 736
Deaths: 35 401 13th March 2020 31st March 2020
1st restrictions’ announcement New restrictions’ announcement
• Restrictions on the operation of shopping centres (pharmacies,
Daily increase grocery stores and drug stores remain open everywhere,
• Keeping at least 2 meters distance between pedestrians
including in shopping centres) • Children and teenagers under 18 years of age will not be
35,000 able to leave the home without adult supervision
• Restaurants can only offer delivery or takeout food
30,000 • Ban on public, national and religious gatherings of more than • Limiting the possibilities for using parks, beaches,
25,000 50 people (applied both to indoor and outdoor gatherings) boulevards, boardwalks and city bikes,
20,000 • Limiting the number of clients in shops, markets and post
offices
15,000 15th March 2020
• Closing of beauty salons, hairdresser’s, barber shops
10,000 Closing the borders to foreign citizens • Hours for seniors (from 10.00 to 12.00) in grocery stores
5,000 and service points
0 24th March 2020 • Closing of hotels
26/03
16/04
28/05
18/06
30/07
20/08
10/09
22/10
12/11
24/12
14/01
5/03
7/05
9/07
1/10
3/12
New restrictions’ announcement • Obligation to quarantine people who live together with a
• Reduced mobility, except: person who will be quarantined after April 1st
• Way to work and home • Postponing of rehabilitation treatments,
Total cases • Volunteering in the fight against coronavirus • Employers obliged to provide additional security measures
• Necessary matters of everyday life for employees:
2,000,000
• Two people at maximum able to attend meetings • Keeping at least 1.5 meter distance between work stations
1,500,000 (exception: events involving only family members or
people living in one house) 16th April 2020
1,000,000 • Number of people in public transport should correspond New restrictions’ announcement
500,000 to half the seating places in a given means of transport
Obligation to cover face and mouth in public places.
• Closing of fitness centers, gyms, swimming pools, dance
0 centers, museums, libraries
5/03 5/04 5/05 5/06 5/07 5/08 5/09 5/10 5/11 5/12 5/01COVID-19 in Poland
As of 1st of October 2020
20th April 2020
Introduction of Stage I of restrictions’ cancellation • YELLOW zones – 6-12 infections per 1000 people with last 14 days:
Government introduced 4 Stages of restrictions cancellation and going back to ‘new • sport events – up to 25% of the occupancy
normality’. • cultural events – up to 25% of the occupancy
• gastronomy services –1 person per 4 sqm
29th April – 27th May 2020 • amusement parks – 1 person per 10 sqm
• fitness clubs – 1 person per 7 sqm
Introduction of Stage II, III and IV of restrictions’ cancellation
• weddings – up to 100 persons
8th August 2020
Declaration of state of epidemiological emergency
17th Oct 2020
Suspension of classes in schools, kindergartens, nurseries (e-learning)
More regions are marked as red zones
1st October 2020
• Ministry of Health has announced the new strategy of pandemic strategy. 24th Oct 2020
• Due to rapidly increasing the number of infections, the Government restored the All country is marked as red zone
restrictions in counties with the highest number of infections per 1 000 inhabitants.
• RED zones - 12 infections per 1000 people with last 14 days: 7th Nov 2020
• sport events – without an audience Restrictions are prolonged and closing of shops in shopping malls is announced
• ban on cultural events
• gastronomy services –1 person per 4 sqm 28th Nov - 27th Dec 2020
• closing of amusement parks Restrictions are prolonged but shopping malls may be open in sanitary regime
• fitness clubs – 1 person per 10 sqm
• cinema - fitness clubs – 1 person per 10 sqm 28th Dec 2020
• wearing a protective gloves while shopping is obligatory Change of restrictions – shopping malls are closed
• religious cult – up to 50% of the occupancy
• public transport – up to 50% of the occupancy Detailed restrictions currently applicable (18th – 31st Jan 2021) may be found on the next slide.
• weddings – up to 50 personsCOVID-19 in Poland
Current (18th Jan – 31st Jan 2021) restrictions in RED ZONES (whole country)
/ Restriction on shopping centers operation – only food operators, book and press stores, drugstores, pharmacies, DYI and free-standing large-format furniture
stores
/ Suspended operation of gastronomy services stationary (take away only)
/ Limitation on the number people in retail premises – 1 person per 15 sqm in >100 sqm premises, 1 person per 10 sqm inCOVID-19 in Poland RETAIL PRCH report shopping centers at a turning point impact of Covid-19, Dec 2020 The lockdown of shopping centers for 7 weeks in the spring and functioning in the 'new normal' as well as the sanitation regime have had an impact on the industry's performance. After the reopening of shopping centers on 4 May, both the average footfall rate and tenant turnover remained significantly lower than in the corresponding periods in previous years.
COVID-19 in Poland RETAIL PRCH report shopping centers at a turning point impact of Covid-19, Dec 2020 In recent years, the turnover of retail tenants in December was on average 50-55% higher than the average monthly turnover from January to November. The pre-Christmas period is the most profitable time for the retail industry. The restrictions on shopping center operations in November means a turnover loss of billions of PLN for the industry. December will not be as good as it was in previous years due to lower footfall due to the pandemic. The report doesn’t take into consideration current lockdown of shopping centers but PRCH summarizes estimations as the total lost turnover of 3 lockdowns will be around 30 billion PLN (already calculated 17,5 billion PLN in Spring and forecasted: 8 billion PLN lost due to lockdown in November and around 4 billion PLN lost due to the current lockdown which started on 27th December 2020.
COVID-19 in Poland
RETAIL OFFICE
• The three lockdown episodes announced last year clearly influenced changes in Poles' shopping habits • Pandemic restrictions forced many companies to adapt their policies and
and contributed to the growing popularity of smaller retail formats. At the same time, the outbreak of the procedures to allow employees to work from home, the trends show that
pandemic highlighted the challenges that the market had been facing for a long time. In addition to the 2021 will still be a year of hybrid working model.
growth of online and multichannel sales, the need to look for alternative locations that will allow chains to • As for the start of 2021 we assume that demand for office space will not
attract new groups of customers was also more strongly emphasised. These include, for example, high disappear as many companies saw that full-time remote working is not
street locations, which can benefit from the current market changes by adopting the right strategy. conducive to building an organizational culture or employee relations.
• Pandemic has reinforced the popularity of convenient and quick shopping that can be done within walking • An already forecasted trend that will become even more pronounced in the
distance of one's home. This has also been reflected in the new space that has been delivered to the real estate industry will be the rise of technology. In many companies, the
market. Throughout 2020, developers completed 430,000 sq m of space within large-scale retail schemes, pandemic has accelerated decisions on the use of various tools and
as well as convenience centers. 41% of the completed space was delivered within retail parks and a applications.
further 28% within convenience centers. Shopping centers (still the most popular format in Poland)
accounted for only 20 % of new supply.
• Developers who have so far specialized in retail properties may enter the residential sector since retail INDUSTRIAL
tenants are increasingly interested in locations in properties located on commercial streets. • Automation in logistics makes delivery times for online purchases shorter,
and thus complexes enabling storage on the outskirts of cities, including
• 2020 was a challenging year in terms of rental conditions. Commitments between retail landlords and projects in the SBU (Small Business Units) formula, are growing dynamically.
tenants were temporarily suspended, in the event of a requirement to close shops tenants were The warehouse segment has not only proved resilient to the crisis, remaining
exempted from rent and service charges in exchange for a lockdown plus six months extension of the the only one at the same rent level, but has greatly strengthened and
lease. In addition to the government regulations, many tenants received so-called Covid discounts from continues to strengthen its position. In the next few years, warehouses will
landlords, usually spread over several months of 2020. grow to become an ever-bigger star of the real estate market, and the
• Due to the second lockdown in November and the third lockdown currently underway, further rental position of our country as one of the main logistics hubs on the continent
discounts are under discussion in many cases. However, it should be borne in mind that the government will become stronger and stronger. In Poland, more than 1.5 mln sqm of
regulations have had a negative impact on the financial health of shopping center owners, who are warehouse space is currently under construction, over 70 percent of which
additionally not covered by any assistance program. Lease renewals are currently more flexible and, in is leased.
some cases, signed for a period of 2-3 years instead of the standard five. An aspect which allows for Source: JLL & Walter Herz
cautious optimism in terms of the gradual recovery of shopping centers and retail brands is the shopping
needs of Polish consumers. Although the growth of e-commerce in Poland is an undeniable fact, Poles still
prefer traditional retail.COVID-19 in Portugal 21st January 2021
As of 21st of January 2021 Portuguese Government tightens rules of the mandatory confinement
Cases: 643.113 Since the 21st of January, the Portuguese Government implemented a series of tighter rules
Recovered: 461.757
following less than a week of the new mandatory confinement in which the regulations
Deaths: 10.271
proved unsuccessful in controlling the Covid-19 pandemic.
After a weekend of media reports showing more people than expected on the streets and
descriptions of extreme difficulty public hospitals are facing, Portuguese Prime-Minister
António Costa called an extraordinary meeting of the Council of Ministers on January 18th.
The Government agreed on several adjustments and additions to the rules already in place,
especially in cases where exceptions were being exploited to remain on the streets or exit the
house more often. The new rules include limitations on take away service for bars and
restaurants, a ban on certain public and outdoor spaces, earlier closing hours, tighter
regulations for remote work. After that, the Portuguese Government also decided to close all
schools for 15 days, starting on 25Th January.
The more than 10 thousand cases of Covid-19 recorded per day in the last week and over 200
related deaths in the last 24 hours place Portugal as the worst European country at the
moment and one of the worst countries in the world when considering cases and deaths due
to Covid-19 per million inhabitants.
Data from: CDC · WHO · ECDC · Wikipedia · The New York TimesCOVID-19 in Portugal
NEW RULES IMPLEMENTED IN THE CURFEW, AS OF 21ST JANUARY
● All schools are now closed
NEW ECONOMIC SUPPORT
● All price reductions and discount campaigns aimed
at drawing customers to stores are now prohibited. MEASURES FOR COMPANIES:
● Customer service establishments
must close at no later than 8 p.m. on weekdays ● People walking or practicing sports cannot stay in ● Simplified lay off for companies and services that
and at no later than 1 p.m. on holidays and parks or leisure areas, they can only pass through have to close.
weekends. The only exception is for food during short periods.
retailers, which can close at no later than 5 p.m. ● Commissions applied to restaurants by intermediary
on holidays and weekends. ● Outdoor locations for sports such as tennis, platforms for delivery cannot be higher than 20% and
basketball and padel courts or golf courses can no taxes for users of such platforms shall not increase.
● People must remain in their municipality of longer be used.
residence during the weekend, except for special ● Companies that in the fourth quarter of 2020 have
health reasons, work, or assistant to vulnerable ● Remote work must be the rule for companies. On- recorded turnover losses of more than 25% will be
family members. premises workers must have a special credential able to apply for support which will be paid twice as
provided by their employers justifying their much as the amount foreseen in the Support
● Restaurants, bars and similar places – which impossibility to work remotely. Programme.
can only serve on a take-away basis – can no
longer sell any type of drinks to customers. ● Companies with more than 250 employees will have
until Friday the 22nd at midnight to send the Authority
● Customers are not allowed to eat or drink near for Working Conditions a full list of workers whose
to restaurants and bars. functions demand their physical presence in the
company’s premises.
● Restaurants inside shopping centres can only
function for delivery services, direct or by ● Senior universities, day-care centers and leisure
intermediary. Take-away is forbidden. centers for elderly people must remain closed.
● All other types of commercial establishments
are forbidden to deliver goods or products such
as clothes on a take-away basis.COVID-19 in Portugal
2020 OVERVIEW SHOPPING CENTERS
• Coronavirus has had drastic effects on the retail business industry in Portugal.
Thousands of stores closed during the lockdown period – from 17th of March
OFFICE until 1st of June – two and a half months business closed (with few exceptions
like pharmacy, food retailers and stores with essential necessity products);
• The moratoriums on commercial leases in the first emergency period was reinstated with
the continuation of more emergency periods. In some cases, with impact in rental income. • Many of these tenants were unable to re-open. Job losses and interrupted
incomes translated into lower consumer spending;
• With the continuation of the pandemic crisis, more businesses impacted by the situation are
struggling. The vacancy is increasing as the demand for office space remains weak. • Portuguese government implemented furlough programs in order to stem the
flood of unemployment due to the closing of shops;
• Occupation in office buildings increased from the Summer until late Fall. With the pandemic
crisis worsening, again companies reduced their presence in their offices to the minimum. • Lockdown habits changed the footfall patterns; E-commerce business model
Presently. working from home is mandatory, with very few exceptions. boosted, while brick and mortar business declined;
• Building’s operations and services are running, with the full scope of services. Common areas • Landlords faced big challenge in collecting rents during the lockdown period and
and systems were adapted in the beginning of the pandemic situation and these procedures after. Government imposed legislation to block fixed rents payment during the
remain in force. lockdown period and until the end of the year. Tenants only pay turn over rent
during this period.
• Landlords of office and services buildings are in general willing to accept reasonable requests
for support from their tenant's, with rents mostly by moratorium on rents. It is expected that, • Collections: rental collections have been severely impacted, with several
as leases expire, most tenants will reduce their areas. retailers unable to meet their obligations and others signaling that they would
not reopen;
• Most buildings and portfolio transactions still on hold. There are some active investors
seeking opportunities, but they are struggling to finance their operations. • Property management have to address occupancy challenges and contract terms
while maintaining retail destinations appealing for costumers.
LOGISTICS
TRAFFIC decreased around 30% / SALES decreased around 25%*
• In general terms, the logistics market is good shape, as the supply chains are kept working. *Shopping Centers managed by MVGM (average)
• Only logistics' tenants with businesses impacted by the pandemic were having difficult times
early in the pandemic crisis.COVID-19 in Portugal 2020 OVERVIEW RESIDENTIAL • During the last year, the residential market has managed to resist the pandemic situation. • It is true that the number of transactions decreased compared to 2019, but the average value of the houses (acquisition) even slightly increased. • Regarding the rental market, the situation is completely different. The tourism crisis triggered by the pandemic, has led many houses, until then on a shorten rental regime, to switch to a long- term leasing. • Especially in the 2 major Portuguese cities (Lisbon and Porto), about 15% of the houses have migrated to the traditional rental market. • If we consider the national figures, we may be talking about approximately 43 thousand new houses in the rental market, which represents an increase of 67%. This situation caused pressure on rental prices, which have already started to fall.
COVID-19 in Romania
As of 27th of January 2021
Cases: 718612
Recovered: 662400
Deaths: 18015 21st Feb – 2nd March 2020 14th – 21st March 2020
First preventive measures State of emergency declared, parliamentary activity
suspended
• 14-day quarantine for citizens returning from the
affected regions of Italy and China • State of emergency in Romania starting March, 16
• Designation of five hospitals as isolation centers for new • Schools closed during the state of emergency
cases • Temporary closure of restaurants, hotels, cafes, clubs,
• The Minister of Education and Research required gradual closure of borders, or limiting or prohibiting the
schools to spread awareness about coronavirus movement of vehicles or persons in/to certain areas
• No groups larger than 3 persons on the streets
• Leaving home between 10 p.m. and 6 a.m. for no reason
is prohibited
• All shopping malls are closed, except for the sale of food,
veterinary or pharmaceutical products and cleaning
8th – 12th March 2020 services
Public gatherings banned, schools suspended
• Ban on all indoor or outdoor activities 22nd – 28th March 2020
• Closing all schools in Romania, starting on March, 11
First COVID-19 deaths, nationwide lockdown
until March, 22, with extension possibility
• Cessation of flights, bus rides and rail transport to and • First three deaths were reported in Romania
from Italy • National lockdown
• Ban on sports, scientific, religious, cultural or • Movement outside the home or household is
entertainment events with over 100 participants in prohibited, with some exceptions (work, buying food or
closed spaces until 31 March medicine etc.
• Border crossing points with low traffic have been closed • People over 65 years-old are allowed to leave their
homes only between 11 a.m.-1 p.m.You can also read
