03.06.2021 – 11:35
AMADEUS Marketing GmbH
Limburg (ots)
The corona crisis is not leaving its mark on the real estate market either: While real estate in the retail sector is partly vacant, it remains attractive in other sectors despite working from home and is benefiting from increasing demand. The AMADEUS Group explains why investing in commercial real estate can be worthwhile even in times of Covid-19.
The effects of the corona pandemic are noticeable in many areas of life, partly also in the real estate industry. Large parts of the real estate market have so far proven to be crisis-proof; this applies to living space, for example: The interest in private rental and owner-occupied apartments and houses is consistently high. In particular, the demand for real estate in the vicinity of large cities has risen sharply compared to the previous year, as an analysis by ImmoScout 24 in March 2021 showed, among other things. Since February 2020, for example, the demand for houses in the Berlin suburbs has increased by 75 percent. In the area around Frankfurt am Main, an increase of 69 percent has been recorded, according to an analysis by Immowelt (March 2021). In the case of commercial real estate, however, there are clear losers in the wake of the Covid 19 crisis. Company downsizing and bankruptcies lead to a lower space requirement and vacancy. The retail sector is particularly hard hit. This is not least due to the changed purchasing behavior of consumers, who are increasingly making their purchases online as a result of the pandemic. It will take longer for the retail sector to recover from these cuts. The German Retail Association (HDE) is currently calling for a funding fund for inner city concepts of at least 500 million euros per year in order to support retailers as quickly as possible and to keep inner cities attractive. In the long term, there would be the possibility of restructuring commercial properties and using them for other purposes.
Why commercial real estate is still worthwhile
On the other hand, the market for logistics real estate is benefiting from the trend towards online shopping, so that experts expect an increasing demand for space. This also applies to the market for office real estate: due to the increased use of home offices, the demand for office space declined significantly in the 2nd quarter of 2020. However, the demand for office space is likely to rise again in the future, as the increased service trend will increase the number of desk activities. Already in the first quarter of 2021, almost as much office space was rented in Germany’s largest cities as a year before, before the outbreak of the corona pandemic. According to a survey by the Institut der deutschen Wirtschaft (IW) among 1,200 companies (4th quarter 2020), only 6.4 percent of companies plan to reduce their office space in the next twelve months. Instead, around 17 percent want to convert the space to create more space for communication and exchange. And on the employee side, too, the majority of people are clearly interested in a mix of home office and work in the office, as a survey by the Boston Consulting Group of 9,000 employees from 20 professional groups and industries found in December 2020.
Office space remains attractive for rent, purchase and investment
This means that both the purchase and rental of commercial properties that are used as office space continue to be worthwhile, as Dirg Parhofer, Managing Director of the AMADEUS Group, confirms. “Since the market situation remains essentially unchanged and there is no change in interest rates in sight, investors and owners shouldn’t be afraid to buy real estate.” Especially in attractive locations, the purchase can form a profitable investment and hidden reserve for the future, this is all the more true if the financing is done with equity and there are no other long-term costs apart from the operating costs. Renting office space is interesting for companies that want to remain flexible, as they can gradually increase the required space as required or, through a special right of termination, have the option of canceling parts of the building that are not required earlier. But here too, the location plays a decisive role. Even if the trend is towards hybrid working models, the compatibility of family or private life and work is and will remain an important aspect for employees.
AMADEUS Group recognizes the trend towards new living concepts
With the trend towards suburbanization, modern living concepts are required that take work and private life into account and harmonize them with one another. The AMADEUS Group has recognized these needs and is meeting the increasing demand for real estate in the area around Frankfurt am Main with its AMADEUS 30 YEARS ANNIVERSARY 1991 project. At the ICE area in Limburg and thus in direct access to Frankfurt Airport and Central Station as the most important traffic junctions, not only 58 apartments, but also two commercial units are being built. This enables the functional integration of several areas of life in the new residential project, not only the optimal combination of family and work, for example with co-working spaces and shared offices in the property, but also short distances and offers in the immediate living area, various sports and Leisure activities in and around Limburg as well as childcare or shopping. Companies and employers who want to meet their employees’ desire for more flexibility benefit from the commercial units in the suburban environment and the excellent infrastructure, which is particularly interesting for working people and commuters.
About the AMADEUS Group
The AMADEUS Group is the leading company in the housing construction industry in the Rhine-Main area and has been a pioneer in the construction of modern housing complexes since 1991.
Press contact:
AMADEUS Marketing GmbH
Robert-Bosch-Strasse 16
65549 Limburg
Phone: 06431-9199-0
Telefax: 06431-9199-91
Email: [email protected]
https://www.amadeus-group.de/
Original content from: AMADEUS Marketing GmbH, transmitted by news aktuell
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