Coronavirus in real estate: Investors have opted for a wait-and-see tactic

Real estate market to handle slight decrease in activity.

The industrial and logistics sector has been hit the least by the corona crisis out of all real estate sectors. The industrial and logistics sector has been hit the least by the corona crisis out of all real estate sectors. (Source: Courtesy of Contera)

The COVID-19 pandemic has had a slightly negative, but not dramatic, impact on the real estate market.

While anti-pandemic measures hit the retail sector of real estate the most, industrial properties, where there is a strong demand from players in the field of e-commerce, are the potential winners of the crisis. The office segment was moderately affected. The demand for housing remains highly driven by a general lack of available apartments, especially in bigger cities.

SkryťTurn off ads
Article continues after video advertisement
SkryťTurn off ads
Article continues after video advertisement

Related article Take a look at the view from the first completed residential tower of Zaha Hadid’s project in Bratislava Read more 

“Just as it has coped with the health crisis, Slovakia will certainly cope with a slight decrease in activity in the real estate market,” said Richard Urvay, director of Colliers International in Slovakia. However, Urvay expects a slight impact on investors’ confidence. “It is questionable how big institutional players will react and whether they will prefer rather traditional markets such as the United Kingdom, Germany and France.”

SkryťTurn off ads

The development on the real estate market in Slovakia is similar to other central and eastern European countries. Across the region, rented commercial spaces are the most affected, especially in capitals accustomed to a large supply of tourists who are currently missing.

Related article Rental housing has become a hot issue Read more 

“The investment market has slowed; some investors are opting for a wait-and-see tactic and postponing the completion of projects for a few months until the situation stabilises,” said Ľubor Procházka of CBRE Slovensko. “Some other investors were hit by the weakening of local currencies against the euro, which also resulted in the postponement of investment transactions.”

Retail sector hit the most

The rest of this article is premium content at Spectator.sk
Subscribe now for full access

I already have subscription - Sign in

Subscription provides you with:
  • Immediate access to all locked articles (premium content) on Spectator.sk
  • Special weekly news summary + an audio recording with a weekly news summary to listen to at your convenience (received on a weekly basis directly to your e-mail)
  • PDF version of the latest issue of our newspaper, The Slovak Spectator, emailed directly to you
  • Access to all premium content on Sme.sk and Korzar.sk

Top stories

Stock image.

Twice as many Ukrainians work in Slovakia now than before the Russian invasion.


Píšem or pišám?

"Do ľava," (to the left) I yelled, "Nie, do prava" (no, to the right), I gasped. "Dolšie," I screamed. "Nie, nie, horšie..." My Slovak girlfriend collapsed in laughter. Was it something I said?


Matthew J. Reynolds
Czech biochemist Jan Konvalinka.

Jan Konvalinka was expecting a pandemic before Covid-19 came along.


SkryťClose ad