How Covid-19 has impacted the real estate market in Italy and Europe in 2020 and for the rest of 2021?
Since the pandemic caused not so few troubles to many of us, I was curious to make a research to better understand how the situation has been developing in course of 2020 and how Covid-19 has modified our expectations either about the tourist flow or about our decisions of buying or renting a new house with more benefits. But mostly I was curious to make a comparison with other countries in Europe and USA, our main competitors.
How can you imagine the general situation and how the pandemic has affected our lives, habits to buy or rent an apartment or home, urban mobility and mostly our sense of feeling safe?
It seemed an incredible pandemic investing another continent and no one of us could imagine how our lives would be changed like a Tsunami day by day…
Covid-19 has rapidly affected our daily life in all the main aspects (health, social and economy), businesses and blocked the world trade and movements.
Reading some sources online about the consequences of Covid-19 in their lives, I’ve thought to support the interview of Aaron Marshall – CEO of Keyrenter Property Manager, who tends to think positive and supports
If you’re wondering what your next move should be, I think you should do exactly what you would do if there wasn’t a pandemic. Buy. Sell. Rent. But you need to do it with your eyes wide open and, obviously, some regions in the country are stronger and healthier than others.
According to his opinion:
- people will continue to buy homes and in some areas of US the real estate industry is doing very well
- international buying is down and will continue to go down
- rental properties, expecially vacation homes, will continue to thrive (in some areas, like out of the urban cities, are doing very well)
- technology will continue to make the real estate market easier to navigate… it’s a fact that Internet has transformed our way to live, managing, buying or renting our property much more easier than in the past and I think it will be always more
How Covid-19 may have huge impact on property markets in the UK?
Jonty Bloom on BBC reports how the situation has terribly changed in 2020. In the UK, the Nationwide house price index for May showed that prices fell 1.7% from the previous month, the largest decline for 11 years.
Annual house price growth halved from 3.7% to 1.8%, as the coronavirus crisis hit market activity.
Before the pandemic struck the UK, the housing market had been steadily gathering momentum, according to the Nationwide.
During the long-time of lockdown, many of us have realised how was easier and realistic continue to work from home but this is having an influence on the market.
They hope, and we too, that all the system will rebound even if a little bit slowly and infact, the majority agrees in considering the current situation as a temporary pause in the market, with would-be buyers planning to wait 6 months on average before looking to enter the market.
Separate figures from the Bank of England show how the mortgage market decelerated sharply alongside the house sales shutdown. But this situation could represent a great opportunity for those who prefer not to wait but to invest right now and get a great deal.
If you are searching for a good opportunity in the UK for your next buying, such as a second home or potential vacation rental, why not to check how high a potential Mortgage could be in course of time?
Take a look at the feature set in the Mortgage Calculator which allows you to link to a specific calculation with the results already filled in. Moreover you can profit of graphs of loan repayment along with monthly and yearly amortisation tables.
New reports specify how interest rates are not going to be raised any time soon and the supply-demand will continue
The UK’s financial watchdog has confirmed the support firms should give to mortgage customers who are either coming to the end of a payment holiday or who are yet to request one. That could be the right moment to make your choice…
And in Italy what’s going on the real estate market?
As in other markets, also in Italy the real estate industry closed 2020 with over €8.6 billion transacted, a circa 30% decrease compared to 2019, at the same level of 2018.
Retail and hospitality, the most impacted asset classes by the COVID-19 pandemic, closed the year with a reduction of 22% (continuing a reduction trend already in place in 2019 and in 2018) and of 74% (but in line with what happened in 2017 and in 2018).
More information about this report you can get from the report by Mr. Carlo Vanini with his Covid-19 impacts on Italy Real Estate.
My curiosity was satisfied and like in every dramatic situation, there is always a way to get a deal.
As the virus continues to spread from country to country and block all of us at home, we have to imagine how the situation is more or less similar whereever you check.
But no matter, where the crisis is strong always big deals are behind the door…
This could be the right moment for investing in property market, even if the aim is to achieve a profitable investment through the short term rental. And regarding the tourist purposes, don’t worry because the system will restart sooner or later with much more willing to enjoy than before.