Real estate market surprisingly stable even one year after Corona

June 2021 – Germany's commercial real estate market remains surprisingly stable in large parts, even one year after the outbreak of the Corona pandemic. According to Peter Axmann, Head of Real Estate Clients at Hamburg Commercial Bank, office properties in prime locations in particular are remarkably resistant to the crisis.

Peter Axmann, Head of Real Estate Clients at Hamburg Commercial Bank
Peter Axmann, Head of Real Estate Clients at Hamburg Commercial Bank

There has been no shortage of gloomy forecasts about the development of the German real estate market in view of empty city centers and office towers since the outbreak of the pandemic. The reality and the outlook, on the other hand, are much more hopeful, according to Peter Axmann, a market expert of many years' standing. The head of real estate customers at Hamburg Commercial Bank recently took part alongside other experts in the online press conference "One year of Corona: consequences and outlook for real estate financing in Germany".

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Many stable sectors, but also clear losers of the Corona real estate crisis

Axmann's interim conclusion: "Overall, the German real estate market has come through the crisis well so far, although the outlook varies greatly in the individual asset classes. Winners in recent months have been residential and logistics properties, as well as food-dominated retail properties. Here, rents and prices will continue to rise." However, according to Axmann, there are also "clear losers": shopping centers. Here, structural change is hitting in full force. "The trend toward online retail has been accelerated once again by the pandemic." For the hotel sector - also hit hard by the Corona crisis - he expects a slow recovery in real estate prices within the next three years. Axmann is optimistic with regard to domestic vacation hotels, while he expects a longer lean period for conference and business hotels.