For the moment, it seems difficult to know what face the real estate market will have at the end of the confinement. However, real estate professionals already have several scenarios in mind. What trends are emerging after confinement? What impact will the health crisis have on property prices? Here are some possible leads according to different experts.
Maintained real estate projects
“63% of people had a real estate project before the COVID crisis19, and 57% are maintaining it while making it evolve,” reveals the latest study by real estate developer, published in late April. Another recent study of the real estate ad site supports this trend: “The candidates for the purchase of property remain positive despite the Covid-19 crisis. And 70% of them remain confident about the realization of their project in the next six months, and plan to resume it by the summer.” Despite everything, the experts put forward behavioral changes.
The will to go green emerges.
The first trend that seems to be emerging is a desire (need?) For city dwellers to acquire property “quiet and close to nature” for one in three according to the study. “And 17% now believe that the proximity of the accommodation to their workplace is less important”, according to the study. “City dwellers, who have experienced confinement in their small apartment, will want a house with a garden. One could even imagine that the second house, in a city accessible a few hours by TGV, is the big winner in the real estate market after confinement”.
The rental market could farewell
Another big trend: “an explosion in the rental market.” Indeed, it would seem that this option could appeal to a certain number of people. “The summer holidays are approaching, and the people know that they will certainly have to stay at home. They will look for a house with a garden, or even a swimming pool, depending on the geographic area, to meet up with family or friends. Seasonal rentals should be very popular.”
Accelerating the digitization of visits
Real estate agents are already preparing for the recovery. Some have maintained regular contact with their clients during confinement. Virtual tours have taken place. “For the profession, there will necessarily be an acceleration of digitalization. Currently, it is already possible to visit a property virtually. It is a pre-visit which allows good visibility of the property. Another device that we are going to put in place after confinement is the “live visit”. The real estate agent will be in the house or apartment, and visitors on the other side of their screen. This proposal corresponded to 25% of our offer, today I can tell you that it will concern more than half of the post-decontainment visits”, he indicates.
What trends in rates for home loans?
The banks, which had already started to tighten the conditions of access to a mortgage before the spread of the coronavirus should accentuate this tendency to the resumption of activity. Several factors can nevertheless play in favor of a moderate increase: the monetary policy conducted by the European Central Bank if it were to keep key rates at a very low level in the coming months. Banks should make a special effort to restart their activity. And mortgage loans remain the main product of appeal for banking establishments.