There are two-speed real estate . This is a fact that the world is dealing with. A pandemic that has now turned the lives of all of us upside down, but not only that. Even real estate, as we have anticipated, is trying to catch up. But in a different way. That is why we are talking about two speeds. Comparing Europe with China, we can see, in fact, a totally different trend.
Today, with our mini guide, we will try to understand more, analyzing in detail the two situations so distinguished.
Let’s start by analyzing the Chinese situation. Where the outbreak seems to have ignited and then spread to the rest of the world. In what condition is the eastern tiger currently in?
There are signs of improvement, especially in the real estate sector. According to the latest statistics, the situation seems to have improved exponentially in the last two weeks. The number of rental contracts that have been signed over this period is increasing.
In addition, it is the retail and office sector that is holding out. But that is not all. The situation seems to have evened out in South Korea and Vietnam. But in these areas, it’s called neutrality. A wave of optimism, therefore, due both to the extreme containment measures taken from the outset, but also to the strength of a truly exemplary economy and real estate market.
Demand has therefore not totally stopped. There is therefore no talk of stagnation. We are talking about a slight slowdown.
Let us leave China now, so that we can focus on Europe. Obviously, in terms of time, the distance to China is more than obvious. But, in spite of everything, the situation seems to be getting better and better. Some sectors, such as logistics and health care, seem to have seen prices rise. This is caused by an increase in demand. On the property side, however, demand is falling. However, despite everything, in recent weeks, it seems to have recovered. We are talking about 42 % for offices, a drop of 55 % for residential (again for purchase contracts). In the case of rents, on the other hand, the drop percentages are much lower. Negotiations fell to only 71%.
In conclusion, comparing the two realities, although there has been a substantial difference in time, there do not seem to be significant disparities.
What we hope, of course, is that we can return to a rapid economic recovery as soon as possible in both cases.
However, containment measures will continue to influence people’s lifestyles. And, automatically, real estate choices too. Will we opt more for rental contracts or sales? To find an answer, simply continue to follow our page !
2005-2019 REALIGRO REAL ESTATE LTD. All Rights Reserved - VAT Nr: 893969932
