A few months ago it would have been hard to imagine that a virus could paralyze half the world. There is currently talk of major financial losses in almost all economic sectors. But how is the Corona crisis likely to affect the residential real estate industry and what should property owners consider now?
Due to the current exceptional Corona situation, the number of those who are now predicting a rapid and sharp decline in residential property prices is increasing from week to week. Many “experts” see the collapse of the residential property market in Germany, which they have always prophesied, inevitably coming towards us.
There is no doubt that the current Corona crisis is also having a negative impact on the residential property market. Many a potential buyer cannot or does not want to burden himself with a real estate investment due to current or expected economic uncertainties. Banks are also likely to tighten their lending requirements. And one or the other potential seller prefers to hold onto his secure property in these uncertain times.
But even if one or the other may even long for it – the so-called real estate bubble is not about to burst and residential properties will not suddenly lose value.
The opposite may be the case: As a result of the Corona crisis, new importance is being assigned to one’s own four walls. Due to state regulations to distance oneself socially and to stay at home, the home and garden are viewed as an oasis of security and security. People want to be able to retreat to a beautiful, safe and own home. The demand for residential real estate and the resulting prices will tend to pick up when the emotional factors are considered. Real estate owners can currently be relaxed and so are they.
This is shown by one of our internal surveys at HAUSGOLD. Around two-thirds of the 520 survey participants estimate the prices for residential real estate to remain stable (45.8 percent) or even rising (19.8 percent). In view of the current crisis situation, there can be no question of short-circuit actions among property owners. For 69 percent of those surveyed, the current situation has no impact on their sales plans. In contrast, only 12.9 percent of those surveyed said that the Corona crisis would influence their decision to sell the property.
39 percent of all respondents confirm that the competence of brokers is particularly valued right now. A regional real estate expert can provide competent answers to questions about sales and purchases, thus relieving customers’ uncertainties and concerns.
Conclusion: It doesn’t look as black as many media reports show us in the real estate industry. Residential property owners in particular can breathe a sigh of relief at first.