From the RICS Global Commercial Property Monitor of the first quarter of 2020, a significant drop in sentiment can be seen among investors and tenants due to the changes and consequences of the Corona crisis in the real estate sector. This emerges from a measurement of different indicators that provide information about the market dynamics and the sentiment of investors and tenants. In a total of 34 countries surveyed, 33 countries report a deterioration in tenant confidence. Among investors, too, a decline in sentiment is evident in 30 countries.
According to survey data, there is a high negative trend among investors and tenants in an international comparison, particularly in the commercial real estate sector and the office sector. Experts believe that the new work structures created by the crisis and the curfews and the increase in flexible work concepts will lead to a decline in demand for office space.
In Germany, the real estate market is considered to be relatively robust and stable compared with the other countries and industrialized nations surveyed, even though forecasts have been revised downward overall. For example, there has not yet been a slump in the office property sector in Germany. The situation is different in the retail real estate sector. According to RICS, demand in the sector has already been declining for six quarters, and was even significantly higher in the first quarter of 2020.
Source: RICS
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