Real estate is considered a particularly safe investment – so they say. And the statement seems to be true. Current figures prove that the real estate market in Germany is even better able to withstand the current corona crisis than, say, the stock market. Although the number of sales has slowed down slightly, reports the “Manager Magazin” in May 2020, the prices for real estate in April have even risen contrary to all previous forecasts.
Experts do not expect a slump on the real estate market
According to experts, the virus has so far not had any noticeable impact on the demand for lucrative real estate. Apartments, houses and the like are still in high demand – and the supply does not stand up to this high demand. Falling prices are therefore not expected in the coming months.
The Institut für Wirtschaft (IW) also gives the all-clear. Although the collapsing economy could lead to slightly falling prices, the institute says it is miles away from a slump on the real estate market. In its study, the institute also classifies rents as constant.
Hesitant investors in times of Corona
One thing is certain: many investors are hesitating and postponing planned investments. Company insolvencies, rising unemployment and foreseeable rent losses are unsettling investors. The experts at E1 International Investment Holding GmbH in Wiesbaden can also confirm this. The real estate company specializes in the brokerage of large and high-quality investment properties – residential buildings, commercial real estate, hotels, nursing homes and building plots. “It is understandable that investors want to wait and see how the corona crisis develops and what effects it will have on the economy in Germany and the world in the coming months,” explains E1’s Managing Director Muharrem Erdogdu. The uncertainty is also reflected in the increased need for advice from customers, Erdugdu continues. “In these extraordinary times, we are available to our clients for their questions more than ever before. As a service to clients, E1 Holding GmbH bundles comprehensive information on its website about the impact of the corona crisis on the real estate industry.
Pay attention to the details when buying real estate
For the real estate professionals of E1 Holding GmbH there is no reason to withdraw from planned real estate investments. Corona or not: real estate is still a safe bank for investors. Investors should under no circumstances wait until there is a vaccine – otherwise they will lose multiple returns. But what is true: Investors should now take a closer look and pay attention to the details when choosing their dream property. The value of a property is made up of factors such as location and site, condition and fittings, size, land value and the connection to the infrastructure. Anyone who now purchases an apartment building in an area with rapidly rising unemployment could run into problems with a solvent tenant. “We help our customers to find the right and, above all, profitable property for them,” summarizes Muharrem Erdogdu. “Especially in times of crisis, it is important when brokering real estate to put it through its paces in terms of profitability. At E1 Holding GmbH, customers can rely on this completely.