Real estate markets in different countries react in their own way to the economic crisis. In some countries, investments in housing become a safe haven; in others, only state support saves the situation.
Mid-2020 is accompanied by a full-fledged global economic crisis. The real estate market is one of the first to respond to the current situation. However, the reaction in various countries differs.
In Perm krai, the situation is not encouraging, real incomes have declined, banks have tightened requirements for potential borrowers and, as a result, experts predict a reduction in the number of housing transactions. Everyone relies only on state support, and specifically on mortgage programs with preferential interest introduced in Russia during the pandemic.
In Germany, the future is more likely to be optimistic: according to Engel & Völkers, the pandemic will not lead to a decrease in demand for real estate. Experts believe that even during this period, real estate does not lose its attractiveness to investors. An owned house is a stable investment. A decrease in property prices is not expected, however, it will be possible to fully evaluate trends only in the second or third quarter of this year, analysts say.
In Italy, the latest data show signs of a recovery in the real estate market. The president of Immobildream Company believes that during an emergency, people began to appreciate the importance of their home and, having gained this experience, will soon acquire housing with an open space that meets all needs and requirements.
The Chinese real estate market is also recovering despite significant pressure from the epidemiological situation. In general, the recovery in sales of 100 leading housing companies was better than expected. In the first half of the year, sales reached 4.5 trillion yuan, there was only a slight decrease of 1.1% compared to the same period in 2019. During the pandemic this can be assessed as a real achievement.