Leaving the Urban Area
It is not yet possible to estimate how the Corona Pandemic will affect the housing market in those more rural regions. However, the current Sparda study "Living in Germany 2020 - Differences between urban and rural areas" provides initial indications of this. The study which was prepared in cooperation with the Institute of the German Economy (IW) and its consulting subsidiary (IW Consult) focuses on migration movements in Germany and the effects of the Corona Pandemic on the housing market.
One important finding: In addition to price, availability and infrastructure, the living space in real estate plays a decisive role especially for young families. When they are looking for a single-family house, rural/suburban areas provide significantly more opportunities than urban areas. Prof. Dr. Michael Voigtländer, Head of the Financial Markets and Real Estate Markets competence field at the IW Cologne, explains: "If you are looking for more living space for your family, get out of the urban areas to the surrounding regions. The highly densely populated rural areas close to conurbations are particularly attractive. In this area, 42% of the advertised properties offer more than 120 m² of living space.
In contrast, there is only 11% of single-family homes being advertised in urban regions. Those looking for a 1-2-room houses are more likely to find their ideal home in here: this accounts for almost one third of the advertised owned properties there. On the other hand, it is very likely that “home office” which has become popular caused by the Corona crisis will further strengthen this trend. If the distance to the workplace is now not an important consideration, other things such as more spaces for a lower price will become priority. This will attract more people to the suburban areas significantly, which will absolutely further increase property prices in these regions.
Back to the news