Residential real estate - how is the market developing due to COVID-19?

The COVID-19 virus is spreading globally and paralysing the world economy. The effects of the corona crisis are also being felt in the real estate sector. But how exactly is the pandemic affecting the global residential property market? What impact does COVID-19 have on real estate prices? We will get to the bottom of these and other questions in the following.

The current situation

The consequences of the pandemic caused by COVID-19 are currently being felt around the world: public life is only taking place to a limited extent, share prices are falling and companies are recording massive losses in many places. The effects are also being felt in the real estate sector. Most listed real estate companies have recently suffered losses. How the crisis will affect the real estate business in the long term, however, can currently only be speculated. One thing is certain: there are currently no significant changes in the market for residential real estate. If you want to stay up to date on this topic, visit our special page on coronavirus and property prices. There you will find regularly updated information on how the pandemic is affecting the property market. In addition, we recommend our newsletter, which will also keep you well informed. 

Outlook for 2020

The fact that it is not yet possible to make reliable statements on the long-term development of property prices in the times of COVID-19 is mainly due to the fact that little market data is available to date. Accordingly, we can only speculate about the future. The experts at Engel & Völkers are optimistic, however, because real estate as an investment form is currently proving to be crisis-proof once again. Florian Kraul, Head of Research at Engel & Völkers, assesses the market situation as follows: "Overall, 2020 will of course be worse economically than 2019. But our analysts assume that the markets will recover quickly after the pandemic is over and that we will regain ground in the third and fourth quarters. 

Real estate business increasingly relies on digital marketing channels

Since it is currently not possible for many people to leave their own homes or it at least involves some risks, the real estate industry is increasingly relying on digital marketing solutions. At Engel & Völkers, we are well equipped in this respect and, thanks to state-of-the-art tools, we can continue to offer our customers the same excellent service as before the pandemic - for example through virtual 360° tours or impressive drone footage of your property. To find out what this could look like, take a look at the following properties:

With us you will always be up to date on the latest developments in the real estate market and we are proud to be able to help you with your property sale or purchase even in times of crises. We would be happy to advise you on the many options that Engel & Völkers can offer you in these difficult times. We look forward to hearing from you.