In week nine since the beginning of the investigations of the Corona Real Estate Index, the situation on the project construction sites is overall stable. Considering the entire month of May, this picture becomes more solid. Four weeks ago the thermometer showed 37.0 degrees, since then the temperature has remained stable at 36.8 degrees, which means "no fever".
In the current study, more than nine out of ten companies don´t see any problems with material replenishment. It doesn't look too bright with the staffing. The situation fluctuates. Currently only half of the surveyed project development construction sites don´t experience staffing shortages...this used to look better in the past weeks. Also new is in comparison to the whole month of May, 8 percent have to fight with medium staffing problems. This was no longer the case in the first weeks of May.
Situation in the staffing sector
As for the staff supply, 50 percent (56 percent the previous week) report no restrictions whatsoever. 42 percent of participants register slight problems due to lack of personnel (previous week 44 percent). However, 8 percent of the respondents now have medium concerns about their staffing situation on the project sites again. This has not been observed in this way since the beginning of May. Severe problems or construction stops, as in the first weeks after the corona lockdown, have not occurred since the beginning of May.
Construction sites supplied with material
The construction sites are now almost normally supplied with the necessary material. In the current survey, 92 percent of participants no restrictions (previous week 78 percent). Only 8 percent of those surveyed this week still see slight restrictions in the supply of materials, 22 percent said the same the previous week. Since the beginning of May, there have been no more medium or major restrictions or construction stops at all.
Stable fever curve
The fever curve of the Corona Real Estate Index has been stable at 36.8 degrees for three weeks. Only in the first week of May it was still 37.0 degrees. 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 on the property market. At 36.5 degrees there is no interference, everything is fine. If the problems on the construction sites increase, the temperature rises to a fever, of 41.5 degrees maximum Then nothing works anymore = complete construction stop.
Moritz Koppe, Managing Director of emproc SYS and initiator of the Corona Real Estate Index: "If we look at the situation over the month of May a stabilisation is evident. We should, however, observe how the labor market situation in the real estate industry develops the coming weeks. There is a discrepancy between the ever improving situation in the supply of materials and fluctuating results in the staffing".
Stefan Stenzel, Associate Director at Cushman & Wakefield and Initiator of the Corona Real Estate Index: "At present the project developers and building contractors have the situation on construction sites under control. The task now is to identify the medium and long-term effects on real estate development and to take timely action. “