Real estate market: New conditions and realities

Abstract

The modern real estate market is very sensitive not only to economic and political changes but also to changing epidemiological conditions. The forecast that experts in the field of housing construction give today is very ambiguous. According to a number of experts, the growth as well as decline is possible if all factors affecting the market are observed and they may not be interrelated. The real estate market has felt the impact of the crisis from two sides - a drop in demand and a stop in construction. Before the pandemic hit different countries the housing market was steadily gaining momentum, recovering from the crises of previous years, the level of activity and price growth gradually increased due to continuing labor market conditions, low construction costs and interest rates on loans. The beginning of 2020 was a real test not only for the real estate market but also for the entire economy as a whole, the pandemic made its own adjustments. The current crisis has a completely different nature - against the general background of the deterioration of the situation on the world market caused by the fall in oil prices, the failure of the OPEC deal, the coronavirus pandemic caused a general economic downturn in the world and the aggravation of internal problems in various sectors.