As Germany begins to pick up the pieces following the first phase of the coronavirus crisis, residential experts are arguing over the long-term impact it will have. While most expect an initial fall in prices, it’s still unclear where the pain will be felt, and for how long. Prices in Berlin, for example, have gone up slightly and sales continue to move. Real estate agents continue to show apartments, often via video tours, and they report that while the number of calls has gone down, the seriousness of those who do call is higher. Before the crisis, one told Berliner Zeitung, people would look at available flats when they got bored whereas today, this doesn’t happen.
Sandra Schannfer from the Leibniz Institute for Economic Research said the residential market wouldn’t necessarily face destruction. She said that during the 2008 financial crisis, rental prices were stable, even though purchase prices plummeted. She admits this could happen again, but predicted it would play out more quickly. There’s also growing conviction that the changed situation will force many who had been thinking of moving to do so, bringing more units on the market. This could put pressure on smaller, less expensive properties, as such households are unlikely to be moving up-market.
