Quarantine measures taken in almost all countries of the world are gradually being canceled. Life is back on track; it also applies to real estate markets. In this article, experts from Spain, Italy, Austria, and Turkey share relevant information on the current situation.
Situation in Italy
The expert from Italy reports that pending demand visible after quarantine.
Real estate agencies returned to normal business on May 4. Since the 18th, they allowed free movement within the regions, and this is the opportunity to work with local customers. From June 3, they promise to open movement across Italy and the border with the EU and Schengen countries, and after that, foreign investors can be expected.
According to our observations, requests from customers from large cities have now intensified. For the sake of a higher quality of life, clean air, and good ecology, Italians are ready to move from megacities to small suburbs.
Comparing the state of the market on March 1 and May 19, I can say that before quarantine, the market developed, the number of applications grew, exceeding the targets for 2019. After removing bans and other restrictive measures, we observe pent-up demand. From the tenth of May, we receive a large number of applications. In percentage terms, there are now 20-30% more than before quarantine. According to our forecasts, demand may fall slightly in large cities such as Rome and Milan. But interest in real estates elite areas, such as Tuscany and Umbria, will only grow.
Sellers behave extremely calmly as usual. For two months, none of our customers has withdrawn their property from sale. There was no massive price reduction either, only for personal reasons. Which, of course, was before the pandemic. Italians-sellers are generally not characterized by rush and panic. They always wait, but at the same time are open to dialogue. If they see genuine interest in their property, then they are ready to consider the offer of the buyer.
The most affected by the crisis will come from the commercial segment. Investors should consider how long it will take to rebuild hotels, restaurants, co-working, and other facilities before investing in them. If the goal is to invest in commerce, pay attention to the health sector. Now there is a tendency towards the conversion of suburban mansions into health centers and resorts. Besides, the development is waiting for the logistics sphere.