The Realogy-owned global property franchisor, ERA Real Estate, has surveyed its international franchisees to develop an understanding of the impact of COVID-19 on real estate around the world. It has culminated in a report titled: “The COVID-19 Pandemic’s Impact on Real Estate Around the World: An In-Depth Analysis.” Access the report here.
“Few things transcend cultures and countries like the sentiment ‘there’s no place like home.’ As COVID-19 spread worldwide, the entire global community became more intimately acquainted with their homes as we stayed home to slow the spread of the virus by reducing contact with others,” said Sherry Chris, president and CEO of ERA Real Estate.
“This experience motivated many to rethink their housing situation, which in turn had an impact on housing markets around the world. Through ERA Real Estate’s expansive global network of real estate professionals, we were able to gather insights to help us better understand how different countries fared over the last year and half.
“What we learned is that while many industries languished during the pandemic, real estate remained ‘open for business,’ underscoring that housing is an essential service no matter where you live.”
The effect in the U.S. is fairly well known; demand outstripped supply with record-low mortgage rates, drawing in many buyers. The brand conducted surveys and held in-depth interviews with its global franchisees to ascertain the effect of COVID-19 on the global property market.
The results of the report found that many nations are experiencing real estate trends similar to the U.S.:
- Low inventory and increasing prices are prevalent around the world
- Moving to the suburbs made sense in many countries – but not all
- The second home market was invigorated by the pandemic
- The desire to own a home is stronger than ever.
Some countries reported different trends, such as:
- Mortgage interest rates hovering at or below 1 per cent
- Some nations have limited suburban and rural living options making larger and amenity-filled apartments more desired and valuable
- Safety can have different meanings depending on a country’s political and economic climate.
“Overall, the housing industry in Europe is sustainable. The COVID-19 pandemic has certainly heightened the housing shortage greatly because of the pause in construction, however the only thing that would lead to a slowdown would be a rise in interest rates,” said Francois Gagnon, master franchisor, ERA Europe.
“For agents, their success was dependent on their mindset about change. Agents who stayed connected to their brokers via Zoom had a very successful year.”
ERA Real Estate recently entered the South American market, read more here