FIABCI

An Exclusive Interview With Michael Heming (President FIABCI Germany and FIABCI European Region)

German Property Market After The Pandemic

Administrator | Senin, 11 Januari 2021 - 10:19:17 WIB | dibaca: 141 pembaca

Michael Heming, President FIABCI Germany and FIABCI European Region

The high number of coronavirus cases and subsequent mandatory social distancing requirements are hindering the usual process in property purchasing, in particular for the existing property market, for the foreseeable future. What we would consider to be the standard procedure, i.e. viewing several properties before making our final purchase decision, is now impossible.

It is hard to imagine that online inspections and videos of properties, compared to a personal visit, will lead to the same desire to buy. What is missing are the impressions people gain from direct contact with the property and its surroundings. In this segment, a market slowdown is likely to be expected until unrestricted mobility is restored.

On the other hand, unlike existing properties, many new constructions projects are still in the planning stages. Since there is nothing to view, the decision to buy will depend on the location, the demographics, the apartment layout and the price of the property, as has been the case to date. You do not have to meet anyone personally.

It is also important to note, for investors, that newly-built properties are excluded from the rent cap. This means you can demand the marketdriven rent for a high-quality newly-built flat.

Overall, therefore, the newly-built property market is likely to be less affected by the coronavirus pandemic than existing real estate.

How is the European estate market going nowadays? Have you overcome or gotten used to this new reality after coronavirus pandemic?
The second wave is running in Europe. The real estate market is divided. Residential is still very much in demand with little supply. Commercial, on the other hand, is balanced, shops are oversupplied due to online trading.

What do you think about the present and future of international real estate business? Especially for the property broker profession?
The real estate agent will continue to be needed with his expertise. However, brokers without a clearly highlighted service will disappear from the market.

What are the new challenges and opportunities of real estate after coronavirus?
Commercial real estate will be modernized and adapted to the new challenges. Due to the trend towards home offices, residential properties are increasingly in demand in the vicinity of cities, as there is more quality of living there in terms of space and garden for the children.

Does FIABCI have a leading role in this new reality? 
In Germany there are a large number of associations in the real estate sector, FIABCI is one of them. FIABCI offers the international component that the other federations do not have.

What is your duty towards FIABCI?
It is important to position FIABCI as the international association with worldwide contacts and know-how transfer.

Are Asian buyers still interested in European real estate markets? And how about the Germany market?
Due to the travel restrictions caused by the Corona, international business is currently a little quieter. The German market is still characterized by extremely high demand and very little supply.

Is there any special policy to attract foreign buyers? Something like a Golden Visa? and what are the benefits for overseas investors?
There is a golden visa within the EU only in Cyprus and Malta, and that probably only for a very short time. The EU intends to ban the golden visa in general. There was and is no golden visa in Germany.

When investing in Germany, foreign investors benefit from political stability, security, reliable laws and the rule of law. An investment is safe here, which is why German properties are in great demand worldwide.

About Indonesia Economy and its development in real estate in the present and future. What do you think?
Indonesia has developed very positively over the past few years with many interesting and outstanding project developments. I think Indonesia and Asia have a golden future ahead of them. (Rinaldi)
 
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