Covid-19, what will happen to real estate?
These days, the whole world, and normally Kosovo too, is facing an unprecedented emergency in the modern era. The infection by Covid-19, the new coronavirus, is putting a strain on every socio-economic sector. It is too early to formulate estimates of any kind, it is necessary to understand and monitor the evolution and spread of the disease in order to have a series of information that can shake the data and reject all predictions.
And, as with all economic sectors of our country, it is not yet clear what will happen to the real estate market and in particular to the prices of residential houses. However, it is not certain that the effects will be only negative, some of the elements of the crisis may even affect the improvement of the general reports in the market.
What will certainly be depleted will be Gross Domestic Product: according to initial indications, growth could be halved to 0.5% - even if there are hopes for the second half of the year. The comforting data, if we can define it that way, comes from the European Union, which is studying economic measures to stimulate the states through injections of various funds. But also, unfortunately, the direct involvement of all the countries of the planet is a positive fact (regardless of the tragic nature of the moment and of this statement): in fact, Kosovo would have had even more serious consequences if remained one of the few countries that had to face this pandemic situation.
A slowdown in the growth of property prices is expected, but even this aspect may not turn out to be completely negative if, in the short term, this will accelerate the sale of properties that have been difficult to negotiate and for which unproductive negotiations have taken place.
If the slowdown in price growth is countered by effective economic measures from the government to contain the economic crisis that may develop, we may even face a reversal that may resume the growth of prices and sales.
In fact, the solutions may be to facilitate access to credit for households and businesses and also to reduce the costs of credit.
It is necessary that the tools and rules that will be applied are really effective, so that the concern produced by the possible increase in unemployment and companies forced to close or those in severe crisis is contained as much as possible. : this will allow the real estate market to be less affected by the negative consequences resulting from the spread of the coronavirus, limiting the fall in prices and keeping the purchasing difficulties of potential customers under control.
