The German real estate market has been showing a cohesive structure throughout the Coronavirus crisis. The sale and rental prices of the houses have so far remained fairly stable during this period.
How does the Coronavirus crisis affect sale and rental prices for German homes?
So far,data on this matter has been available mainly about the period before the impact of the coronavirus crisis and the economic blockage associated with containment policies had not yet had its full effect, i.e. from the first quarter of 2020 or March. These data showed only a small impact of the crisis on market development.
This is also the trend shown in the April data that is now available, about the sale and rental prices of houses. April is the first month in which the crisis has been constantly present. This seems to confirm what experts have been predicting for some time: housing markets are much less frantic in their response to external shocks, such as the closing of the stock market, for example. On the contrary, the effects will be felt with some delay and also - as we can see at the moment - in a less severe way.
According to the Europace real estate financing platform, which holds around 15% of the real estate financing for private clients in Germany, the price increase for apartments as well as for existing houses and new construction slowed down in April. However, as in previous months, prices continued to rise, both in comparison with the same period last year.
Text: Translation of the online magazine article Manager Magazin; "So robust geht der Immobilien-Markt durch die Corona-Krise"