Q1 Report & AnalysisDuring the pandemic, the residential market has been extremely lively. Demand for residential real estate is surging.
The low interest rate regime introduced to stimulate the economy following the pandemic a key driver of increased demand. Annual turnover is up by 25% compared to 2019 and properties frequently sell above asking price. Often by as much as 10%. The economic uncertainty following the pandemic had a negative effect on the commercial real estate market. Turnover and transactions are down, prices are also decreasing. Resulting in upward pressure on rental yields. Vacancy rates only marginally increased. Tourism related real estate took a significant hit following travel restrictions, however, following large scale vaccinations the borders are opening for foreign travelers that have been vaccinated. The commercial real estate market will recover quickly once investment and investment strategies are revisited.