Never since the beginning of the investigations of the Corona Real Estate Index has the real estate industry been as stable as it is today. The situation, now in its sixth week, is getting better and better. Only slight shortages of materials and staff on German project development construction sites are still seen in this week of research. This is shown by the results of the current Corona Real Estate Index of baumonitoring.com, the network of renowned companies in the real estate industry.
As for staff supply, 43 percent (previous week 31 percent) report no restrictions at all. 57 percent of participants register slight problems due to lack of staff (previous week 56 percent). Nobody, however, reports medium restrictions due to lack of staff on construction sites this week (previous week 13 percent). Severe problems or standstill, as in the first weeks after the Corona Lockdown, do not occur anymore either.
The situation regarding material supply is also improving. In the current survey, 57 percent of the participants see no restrictions (previous week 44 percent). While 43 percent of those surveyed this week still see slight restrictions in the supply of materials, 50 percent said so the week before. Nobody is currently observing any medium (previous week 6 percent) or major restrictions or even standstill on the construction site.
The fever curve of the Corona real estate index has dropped and currently shows 37.0 degrees. This is the lowest level since the measurement began six weeks ago. The Corona Real Estate Index is shown on a scale of 36.5 - 41.5 degrees. In terms of human body temperature, the index indicates the situation in the real estate market. At 36.5 degrees there is no interference, everything is fine. If the problems on the construction sites increase, the temperature rises up to fever, maximum 41.5 degrees. Then nothing is working anymore = complete stop of construction.
Moritz Koppe, CEO of emproc SYS and initiator of the Corona Real Estate Index: "These are good figures that we can present today in the Corona Real Estate Index. A temperature of 37.0 degrees is almost back to normal. We are staying tuned and encourage the market players in the real estate industry to continue informing us about the current situation in their project developments".
With the help of many participating real estate experts and the support of well-known companies and institutions from the emproc network - e.g. Cushman & Wakefield, Real Estate Lounge, RICS, alyne, Fraunhofer, Norton Rose Fulbright, building radar, alphazirkel, Capmo, Flowinvest and Mailänder Consult - the current state of German project developments and the effects of the Corona crisis are measured once a week.
The weekly survey is conducted by Alyne, a company specializing in cybersecurity and risk management. Alyne provides secure and anonymous analysis of the survey, so the information provided by the participants is protected and cannot be traced.
Stefan Stenzel, Associate Director at Cushman & Wakefield and initiator of the Corona Real Estate Index: "The situation on construction sites has stabilised at a good level. The easing of the Corona lockdown makes me optimistic that this trend will not be reversed. In the coming weeks, we also want to focus on the situation in new project developments in order to understand the challenges that future projects now have to deal with.
Source DEAL Magazine
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