Supply and demand in residential real estate is a global issue, said “The COVID-19 Pandemic’s Impact on Real Estate Around the World: An In-Depth Analysis,” a report from Era Real Estate, a Realogy company.
Era surveyed and conducted in-depth interviews with several Era international leaders from around the world, including South Africa, Japan and Middle East. The survey found that the impact of the COVID-19 pandemic on the real estate industry has been well-documented in the United States. Demand outpaced supply with record-low mortgage rates drawing so many buyers in while others took advantage of remote work to vacate urban centers for more affordable locations.
“Few things transcend cultures and countries like the sentiment, ‘There’s no place like home.’ As COVID-19 spread worldwide, the entire global community became more intimately acquainted with their homes as we stayed home to slow the spread of the virus by reducing contact with others,” said Sherry Chris, President and CEO of Era Real Estate. “This experience motivated many to rethink their housing situation, which in turn had an impact on housing markets around the world.”
Era boasts more than 2,200 offices in 32 countries and territories with more than 2,200 offices around the world. The report found that many nations are experiencing real estate trends similar to the U.S.:
- Low inventory and increasing prices are prevalent around the world.
- Flight to the suburbs made sense in many countries, but not all.
- The second home market was invigorated by the pandemic.
- The desire to own a home is stronger than ever.
However, some countries reported different trends, such as:
- Mortgage interest rates are hovering at or below 1%.
- Some nations have limited suburban and rural living options making larger and amenity-filled apartments more desired and valuable.
- Safety can have different meanings depending on a country’s political and economic climate.
