The corona virus has caused considerable damage to the commercial property market. However, the housing market is largely immune. Appreciation for one’s own four walls has increased during the corona crisis and, in view of attractive financing conditions, is ensuring that purchase prices continue to rise sharply. The rise in residential rents has, however, slowed down. According to the recently published F+B-Wohn-Index, rents under new contracts fell by around 1 percent in the third quarter compared with the previous three months. Alongside the recession and increased unemployment, the improved supply of new housing and the substantial rise in rental levels are likely to have a dampening effect. However, rather than the decline in rents, the regulatory virus could become a risk for the housing market. Instruments such as the rent brake have been introduced to alleviate the consequences of the tight housing markets. However, they have had little effect, because…

Due to the pandemic, the home office topic has gained enormous momentum. However, the path from the temporary solution with laptop at the kitchen table to the opportunities that flexible working can offer is further than it seems at first glance. Many as-pects must be considered. There are various reasons for flexible working, such as lower space costs for offices or savings in the daily commute to work. Less traffic benefits the environment. And the compatibility of family and career can possibly be improved. Those who spend less time in the office are more likely to live outside, thus relieving the tight housing markets in the big cities. First, however, the corona crisis will lead to a decline in office demand on the previously tight office markets. The low vacancy rates should rise noticeably, while the partly high office rents will probably decline. Over the long term, the demand for…

The corona pandemic not only ensures the lockdown of economic activity, it also puts an end to the roughly ten-year boom on the German real estate market. Previously, the smoothly running economy, growing employment and falling interest rates had lifted property prices to what were in some cases high levels. Since 2009, prices for owner-occupied residential property have climbed by 55 percent across Germany, doubling in the seven largest cities. In the case of commercial property, rental yields have halved to less than 3 percent. However, even before the outbreak of the Corona pandemic, the real estate market was no longer running smoothly. In the case of apartments, the rise in prices and rents slowed down, especially in expensive cities. In addition, new regulatory interventions are making the letting business more difficult. Rents are already falling in the retail sector. If a short recession and a strong recovery remains, thanks…