Real estate industry – the end of a success story?

How Corona changes the rule of the game
9/14/2020
  • New Insight

Frankfurt am Main, September 14, 2020. 25 to 30% decline in textile retail trade. Around half of all catering businesses are considered to be acutely threatened by insolvency. Some companies have closed their offices completely for months and have introduced the home office as the new norm. All these developments have problematic consequences for the real estate sector and its market participants. An overview is provided in the current industry update 'Real Estate Industry - the End of a Success Story?' by the management consultancy Andersch.

While the classic apartment and housing market remains relatively stable, both when it comes to buying and renting, or in some areas even continues to pick up, this cannot be said of commercial properties in city-center locations. The questions are up for discussion:

  • What will become of the office if the previous business purpose no longer applies?
  • What significance does this have for commercial property developers?
  • Does stationary trade in its familiar form still have a future - and who will still need large areas in the future?
  • What happens when a wave of vacancies in German city centers results from the insolvencies of restaurants and hotels?
  • Do shopping centers have a future under the new conditions?

Our industry update provides insight into the various developments. You can download it here: