Krack, Dino

Diploma Thesis:
1833

Topic:
Effects of crises on the real estate industry

Editor:
Dino Krack

University Professor Responsible:
Univ.-Prof. Dr.-Ing. Peter Jehle

Supervisor:
University Supervisor: Dipl.-Ing. Carolin Senkel

Editing Period:
13.05.2021 until 13.01.2022

Abstract:
This paper examines the impact of crises on the real estate industry. National and international crises have various effects on the economy, as well as on real estate. The Covid 19 pandemic also has consequences for the real estate industry, but these are not yet fully known. The focus is on the real estate market and office and residential property. Historical real estate crises often show recurring mechanisms and phases. With the help of these, early indicators can be determined that make upcoming crises in the real estate industry more predictable. The market participants involved in crises are usually always identical. The German real estate market remains intact, supply regulates demand. The residential and office property market will remain stable in the future. Rising prices and low interest rates do not yet make a real estate bubble. Loan defaults are not expected due to solid financing and appropriate lending. The Covid 19 pandemic will end the boom in the German real estate market for the next few years. The scarce supply justifies a further increase in rental and purchase prices. Price dynamics are slowing down on average in Germany. In perspective, real estate investments remain attractive and profitable. The Covid 19 pandemic also opens up opportunities and perspectives.