Real Estate

Corona crisis hits the real estate industry hard

Canceled visits and bottlenecks in tiles – the effects of the corona crisis are affecting the real estate industry. Rent deferrals are also a problem for companies.

Medium-sized real estate companies are already feeling the Corona crisis clearly. “There are delays on construction sites and in planning and approval procedures, rent deferrals and a sharp decline in demand,” said the President of the Federal Association of Free Real Estate and Housing Companies (BFW), Wednesday on a survey by the association.

According to this, visits and notary appointments are postponed and employees are missing on construction sites. “Above all, the bottlenecks in supply chains are getting bigger.” This was reported by 43 percent of the companies surveyed. “Tiles, doors and windows are already missing – in addition, house connections can often no longer be laid.”

Delays in construction projects

Due to the loss of employees and skilled workers as well as delivery difficulties, three quarters of the companies expect delays in construction projects. Half of the respondents expect a postponement by two to three months.

There were major delays in the planning and approval phase: around 40 percent stated that the municipalities had suspended important decisions and that planned construction projects could therefore not be tackled. Some companies have also already received inquiries from tenants as to whether the rent could be deferred.

BFW President Ibel called on politicians “differentiated and tailor-made measures to secure economic power and jobs in the industry.” For this, one is already in contact with the federal and state governments. “A distinction must be made between existing and new buildings, small tenants, medium-sized companies and large companies.”

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