Contrary to a number of gloomy forecasts that were heard earlier, the coronavirus pandemic could not bring down the real estate market in Germany.
Moreover, some analysts even argue that investors should consider buying real estate during this period.
According to a statement by Bernd Leutner, CEO of F+B, a real estate consulting agency, the coronavirus had no effect on prices. The cost of residential and other real estate assets remained at the same level as in March, before the pandemic. Moreover, in some regions, a slight increase was recorded – approximately at the level of 3%.
And although in early April there was a decrease in the number of apartments sold by about a third, by the beginning of May this figure began to improve, reaching 85% of the number of apartments in March. And in the 7 largest metropolises of the country, an indicator of 90% was achieved. That is, the real estate market in Germany was surprisingly resistant to global problems.
And analysts at Moscow Sotheby’s International Realty say that now, on the contrary, it is a good time to consider the possibility of acquiring residential real estate in a number of countries, including Germany. It is stated that a global economic downturn is forcing investors to look for alternative ways to preserve capital. As a result, interest from Asian investors in real estate in the United States alone has grown over the past few weeks by 500%.
A number of factors contribute to this. Real estate in developed countries will always be highly valued. Especially in Germany, where for over a decade there has been an acute shortage of housing, despite all the government programs. In addition, to make a purchase, you do not even need to leave your home, all issues can be resolved remotely, which is important in the conditions of self-isolation.
Today in Germany there is a critical shortage of apartments. Demand, depending on the city, is satisfied only by 46-78%. As a result, before the pandemic, this led to an increase in rental costs by 5-6% annually. And based on the foregoing, we can safely assume that a similar trend will continue after the situation with coronavirus normalizes.
