Real estate market in the time of pandemic: current trends and projections

Abstract

The object of this research is the real estate market, while the subject of is the socioeconomic relations between all actors of the real estate market established in the context of implementation of restrictive measures due to COVID-19 pandemic. The authors examine the key theoretical aspects of the real estate market, analyze the dynamics in the housing (including premium segment), commercial, office and other property; make projections and align expert opinions on long-term development associated with the COVID-19 pandemic. Emphasis is placed on the impact of changes in mortgage lending with a lower interest rate under the State Support 2020 program development for the development of new-build property market. The following conclusions were made: paradoxicalness of the development of real estate market during the COVID-19 pandemic, in which the obvious negative factors did not lead to a drop in property prices; ambiguity of forecasts for the development of real estate market after the coronavirus pandemic, considering its consequences; situation on the real estate market of China, Hong Kong, and the United States during the coronavirus pandemic indicate similar development scenarios, while the premium segment prices differ significantly. The authors’ special contribution consists in aligning various expert opinions and assessments on the particular elements of real estate market (reinforced by the statistical data of different countries), and formulating a general conclusion on the state of this economic segment under the current conditions of pandemic.