The impacts of the Corona Virus on Real Estate Market is critical. Epidemic brought many problems for Global Real Estate Market. According to Cushman & Wakefield research, China’s property markets will be the most disrupted in 2020 with longer-lasting implications. In the near term, while retail and hospitability will be hardest hit, office demand will be restrained as well.
In Europe, the global impact will put countries that are more reliant on trade and manufacturing – such as those in the CEE region, the Netherlands and Germany – more at risk. Italy stands also to be impacted given the recent uptick in infections.
The U.S. is more insulated: 70% of the U.S. economy is driven by domestic spending and it generally has less exposure to the Asia Pacific than do other global regions. However, the U.S. and China also have the largest bilateral trade relationship in the world – so the U.S. is far from bullet-proof.
The impacts of the epidemic on global short-term rental markets are also very interesting. Airbnb is facing many problems. Due to the quick spreading of the virus, people’s plans have changed and many reservations have been cancelled. There is a lack of active properties and current reservations as well. Therefore, we might see apartments that were used for short-term rentals revert to traditional, longer-term rentals.
The current critical situation, changes of domestic and foreign economic changes, inflation of the national currency caused changes in the local real estate market. Reduced prices might stimulate selling and buying of the property, but exact predictions are difficult to be made.