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Real estate industry recovers

Although restrictions were imposed nationwide as part of the Corona measures, the construction sector is showing clear signs of recovery. The reason for this was the rapid response and early development of new concepts to safeguard structures. The fourth survey conducted in the fall Corona-Immobilien-Index therefore shows a largely stabilization of site operations for calendar week 50, despite an increasing number of sites with Corona cases. At 37 degrees, the temperature even decreased a little compared to the previous week (37.16 degrees).

In calendar week 49, the number of worksites with active Corona cases still increased from 14 to 23 percent. Fifty percent of the construction sites were operating without restrictions. In the previous calendar week 48, operations were affected at only 30 percent of the construction sites. In the meantime, however, material supply and personnel situation seem to have stabilized. In the context of the Corona pandemic and the resulting impact on property development and construction, the vast majority of respondents (87 percent) say their risk management requirements have changed. When asked if risk management needs to be reconsidered in light of the lessons learned from the Corona pandemic, 75 percent responded that they would like to implement more flexible and transparent risk management in the future.

Moritz Koppe, Managing Director of emproc SYS and initiator of the Corona Real Estate Index: "The construction and real estate industry has successfully developed new concepts to cope with the problems triggered by the pandemic. Corona-related staff shortages could be compensated and thus a further normalization of construction site operations could be achieved."

Stefan Stenzel, Associate Director at Cushman & Wakefield and initiator of the Corona Real Estate Index: "There are clear learning effects emerging in the industry during the second Corona wave. This willingness to learn is also reflected in the reassessment of risk management. The majority of market participants have recognized that risk management in the area of project developments must take new paths in order to meet the new requirements."

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