The German real estate market also proved to be astonishingly robust in the Corona year. In contrast to other countries, there were no sustained upheavals, slumps or price drops, on the contrary. “The German real estate market is very stable and will continue to develop very steadily in 2021,” said Sven Odia, CEO of Engel & Völkers, in the podcast “Die Stunden Null”.
The chief executive reported a “paralysis” in the market in March and April during the first lockdown. However, the market recovered quickly from May onwards. Demand was particularly high in the luxury segment. “The second half of the year was very strong,” said the Engel & Völkers CEO.
The Hamburg broker company, with its 13,000 employees, was able to significantly increase sales during the pandemic. “We had an absolute record year in 2020,” said Odia, who has worked for the broker chain for over 20 years and has been on the board since 2006. According to Odia, brokerage sales rose by 11 percent to over EUR 900 million.
“Lots of people will think about continuing to invest in residential real estate. That remains a megatrend “
However, the demand and wishes of customers would have shifted slightly, reported Odia. Some customers made compromises and cutbacks in terms of the location, for example in order to have more space, a garden or a balcony. “A lot of people have thought about what their living needs really are like, and that has also meant that some criteria have shifted a bit,” reported Odia. There is a “renaissance of the suburbs” and the surrounding area in many regions and a “desire to go back to the countryside”. The price pressure in the inner cities of many large cities remains high, however, because too little has been built.
For this year, Odia expects the demand to remain strong. “The topic of residential real estate is still a big topic, especially since there is a high level of uncertainty in other areas,” said Odia. “It’s not just about returns, it’s about quality of life. Because of this, many people will think about continuing to invest in residential real estate. That remains a megatrend. “
You can listen to the episode of “The Zero Hour” with the entire interview on Audio Now, Apple or Spotify or via Google.
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