Possible effects of the corona crisis on the real estate market
The corona pandemic still has society, politics and business in suspense. Hope for an end is increasing, but this is still a long way off. However, one real winner of the crisis is already certain: digitization. It got a real boost in the past year. The question arises as to whether the online boom will also have a lasting effect on the real estate market.
Since the beginning of the Corona crisis, many people have largely lived at home. You work in the home office, do your shopping online and instead of traveling to distant countries, vacationing on the balcony is the trend. You go to the restaurant less often, but have the food brought home by delivery service and those who have their own fitness room at home are fine. As a result of the crisis, your own living space is increasingly coming into focus and gaining in importance. Search queries in real estate portals show the increased demand for properties with balconies or gardens.
For many operators of restaurants, travel agencies, fitness studios and retailers, however, the long-lasting crisis has become a real test due to hit on their income. Some are dependent on the goodwill of their landlords when renting their commercial space. While an upturn can be expected for restaurants and other leisure facilities after the crisis, retailers must first see whether and how purchasing behavior has changed. Because some consumers discovered online shopping during the lockdown phases. This could result in retail spaces becoming free and changing the cityscape.
Home office instead of a permanent office space
Even if most people long for life before the corona pandemic, especially because of the social contacts, some have also discovered advantages for themselves. Working from home, in particular, is likely to continue after the crisis. Because many companies have found that this works well. For companies, working from home can bring the benefit of cost savings. After all, if fewer people work in the office, less office space is required. Office concepts such as the flex office could provide flexible office solutions.
The trend towards home office can also have an impact on the rental market. Because if you no longer have to commute to work, the distance to the workplace plays less of a role when looking for an apartment. This extends the search radius of potential tenants and could relieve the strained situation in metropolitan areas in the long term. The desired size of the property could also be influenced by the need for a home office when looking, properties with a study are likely to be more sought after now and in the future.
So it’s still exciting to see how the real estate market and especially the use of real estate will change due to the crisis and increased digitalization.