How has the pandemic affected the real estate market in Europe?

Coronavirus pandemic and quarantine restrictions affected the real estate sector. As for the situation in Europe, in comparison with many other countries, the market here has remained relatively stable. The exception is the UK, where house prices plummeted during the peak of quarantine - one of the largest falls in 11 years.

What was the situation during the period of strict quarantine?

In the months when quarantine conditions were most severe, borders were closed, and people were forbidden to leave their homes unnecessarily, the European real estate market faced the following situation:

• the demand for short-term rent of country houses has sharply increased - people wanted to be able to quarantine in a spacious house with the ability to freely go outside to their yard;
• realtors began to actively use online sales, as live contacts had to be minimized;
• most of the deals had to be postponed indefinitely - many of them fell through due to the economic crisis.

Many owners of large villas and cottages wanted to sell their objects in order to reduce maintenance costs. Therefore, at that time, one could find rather profitable offers with a reduced cost.

The real estate market in Europe today

Speaking about the current situation, it is worth noting a large increase in demand for luxury country houses. Private pool options are also very popular. This can be explained by the unstable situation in the world, when the financial system is gradually stabilizing, but there is still no confidence in the future. Because of this, many are trying to acquire large houses with all the necessary conditions away from large cities.

Another popular trend is that more and more people start to work remotely. During the quarantine period, the offices were closed, some of them did not open later. Therefore, for a large number of people in European countries, it has become unnecessary to have housing in downtowns of large cities. In addition, many of them are already accustomed to living remotely - buying things in online stores, taking online courses, even virtual museums.

For the secondary housing market, the demand has grown. It is especially relevant for France, Germany and Spain. As for the cost of such housing options, it has also increased due to the growing demand. For example, in Berlin in the last months of 2020, prices increased by 12%. According to forecasts prices will gradually increase.