The German residential real estate market was not affected by the pandemic. A strong price growth rate of 8,4% was observed. The commercial real estate market was only slightly affected. Industrial and logistic properties performed quite strongly. Offices very slightly hit with a price drop of only 1.2% in average. Retail property, shopping, hotel properties and resorts were more severly hit, but still within a moderate range of - 2.1%. The 'new normal' will be quite close to the former normal.

It is too early to answer this question. Real estate markets react with time delays. Overall, the German market was rather crisis resilient. There will be behavioral changes but it is unclear how sustainable they will be. Home office activities might reduce again over time, unused office space might be converted to other uses (social activities, corporate identity programmes etc.). Living space will expand, urban agglomerations might lose attraction. We don't expect disruptive developments.