COVID-19 and the Impact on Global Real Estate
According to Savills, the impact of COVID-19 on the overseas property sector is predominantly negative. On the world real estate market, a decrease in the number of transactions at the level of 62% is observed, especially in the retail trade and hotel business, where the decrease is more than 80%.
Prices for commercial premises fell significantly in 82% of countries. In the field of logistics in 57% of countries there is no price reduction, but there is an increase in the volume of transactions, primarily due to the connection of the sector with the supply of medical services. As for offices, the demand for premises decreased moderately in 70% of countries, in 13% of countries - quite sharply. The same trend, only moderately negative, was observed in the housing sector.
The hotel sector shows the worst results: 95% of countries report a drop in demand due to the cessation of movement of people. As for retail sales, 74% of countries showed a decline.