A.n the stock markets, the corona crisis sometimes leads to sharp ups and downs in prices. Because the impact of the pandemic on companies and the global economy as a whole is immense. In the real estate market, on the other hand, at least the prices for residential real estate have so far not moved significantly. Sharp price declines, as some initially feared, have not yet materialized. This is proven by various analyzes. According to the latest statements, the Bundesbank does not expect any abrupt price correction either.
Many interested parties in this country have therefore given up hope of bargains in the Corona crisis. At least this is the result of a survey by the pollster Yougov on behalf of the brokerage company Homeday among around 3260 people. Accordingly, a majority of those surveyed are of the opinion that the prices for residential property in this country would not be negatively influenced by Corona: a third assume that prices will continue to rise, and 27 percent expect that the pandemic will have no impact. Less than a third, on the other hand, expect lower prices as a result of the Corona crisis. In May, almost half of the survey participants did this, it is said.
The real estate market in Germany has so far defied the Corona crisis, said Steffen Wicker, founder and CEO of Homeday. Hopes for bargains have now largely been dashed. The results of the survey also matched experiences from customer meetings. Concerns about a real estate crisis have subsided. According to the Federal Statistical Office, houses and apartments continued to rise in price in the first half of this year.
Size as an important criterion
Nevertheless, the corona crisis is affecting the real estate market. More than a third of those surveyed who are planning to buy a property have changed the search criteria for their dream property. The criterion “larger property” is now favored. Home office and “lockdown” have meant that plans are now being made one size larger, says Wicker. In May, when worries about an uncertain economic future still prevailed, price was still the most frequently changed criterion in property searches. Around a fifth of those surveyed now even expect a sales process to be facilitated by Corona.
In times of lockdown, the subject of housing has been reassessed, says Sebastian Mosch, building finance specialist at the financial services provider Dr. Small. Families in particular are looking for their own four walls with more space inside and outside and would find that in a city like Dresden in the bacon belt. Movement out of the city can also be observed in other areas. In an analysis by Dr. In the north and east of Germany, for example, about the third quarter, house prices have recently risen more significantly than house prices.
Much is becoming more digital
Corona could also have triggered a digitization surge in the real estate market. About half of the respondents from Yougov ruled out buying a property without a personal appointment. But 44 percent said they wanted to buy a property even without an on-site visit. Wicker expects that the corona-related boost in digitization when buying real estate will be irreversible and will ensure more competition and efficiency as well as better services in the market in the medium term. Many brokers have adjusted to this and now not only offer comprehensive digital viewing options. Nevertheless, the personal impression should remain decisive for your very own feeling of living. Since buying a property is probably the biggest purchase of their life for most people, the selection should be carefully considered.