In its "Changing world of work" study, the real estate consulting firm JLL examines the effects of the increasing demand for remote working or the shift of work to the home office as a result of the Corona crisis. These changes in the labor market have implications for the real estate market. The study experts observe an increasing demand for larger living space as well as interest in relocating to the outskirts of large cities as well as to rural areas. Particularly in cities and regions where there is a high price differential between rents in the city and the surrounding areas or where real estate ownership is not very affordable, there could be shifts of residence to neighboring areas.
In cities where the possibility of remote working has become part of everyday life, commuting costs will fall and the catchment area of a regional labor market will increase. As a result, the requirements for private housing and living space will change for many people. Citizens who spend a lot of time at home and work from there attach particular importance to a high quality of living. This is ensured, among other things, by an increased number of rooms and the separation of private and work areas. Also, according to JLL's analysis, demand would increase for larger floor plans, a balcony as well as a private garden. However, access to broadband Internet as well as low noise pollution and high energy efficiency also play a significant role in the area of residential quality.
Together with the declining desire of urbanites to live in the center, a shift of housing to the periphery would be expected. On the one hand, JLL's analysis shows which areas can benefit from the demand for housing in the outer districts as well as from the expansion effects. On the other hand, the potentials on these very housing markets are analyzed. According to the study, the cities with the highest expansion potential include Darmstadt, Frankfurt am Main, Munich, Karlsruhe as well as Cologne, Düsseldorf and Braunschweig.
Source: JLL
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