Commercial real estate prices and Covid-19

Authors: Hoesli, Martin;

Malle, Richard

Source: Journal of European Real Estate Research

Full text

: https://doi.org/10.1108/JERER-04-2021-0024

Abstract

Purpose

The article analyzes the effects of the coronavirus disease 2019 (COVID-19) pandemic on commercial real estate prices, with a particular focus on European markets.

Design/methodology/approach

The authors start by highlighting caveats to bear in mind when referring to direct real estate indices. The authors then analyze the behavior of commercial real estate prices during the pandemic, emphasizing differences across property types. For that purpose, the authors use data for both direct and listed real estate and further discuss changes in the main factors affecting commercial real estate pricing. The article then turns to discussing the likely trajectory of commercial real estate prices in the future.

Findings

The authors report that retail and hospitality properties and to a lesser extent office buildings have been affected the most by COVID-19, while the residential and industrial sectors have been less affected by the crisis. The authors maintain that the future trajectory of prices will vary across sectors and that the type and location of assets will become increasingly important in their valuation.

Originality/value

This paper provides for a better understanding of the behavior of commercial real estate prices during the COVID-19 pandemic.

Rights

This content is not covered by the Open Government Licence. Please see source record or item for information on rights and permissions.

Cite as

Hoesli, M. & Malle, R. 2021, 'Commercial real estate prices and Covid-19', Journal of European Real Estate Research. https://doi.org/10.1108/JERER-04-2021-0024

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Identifiers

DOI: https://doi.org/10.1108/JERER-04-2021-0024

Repository URI: https://hdl.handle.net/2164/17981