Coronavirus negatively impacts the property market in Europe
The recent outbreak of the COVID-19 virus (as Coronavirus is also known) has negatively affected the property market in Europe. The main real estate agencies, construction companies, property developers, and experts in the real estate market have declared the alert status.
According to recent calculations, the real estate market has suffered a 30% drop in sales. The fear caused by the Coronavirus pandemic has reached global alarm levels, and sales are expected to continue dropping.
As if this were not enough, the London Stock Exchange has suffered the worst of its crises since 2008. The index of the main actions fell 8% in a single day. All this added to the great negative impact that COVID-19 has caused in the traveler market.
Buying is a big risk
Although the fall on the stock market has been worldwide, the European market has been affected more strongly due to the recent outbreaks that have occurred in Spain, Italy, and the rest of the continent. Europe and Asia are the most affected continents, while America seems to have a lower probability of harboring unexpected outbreaks.
Chris Towner, director of Chatham Financial, said: “The Coronavirus is spreading throughout the world at an accelerated rate. Logically, economic fear is also spreading throughout all territories. Whenever there is a pandemic of this level, it increases considerably uncertainty in the markets.”
“Those of us who have more time in the business can compare this crisis with that of 2008. However, the true impact that Coronavirus may have and the short-term consequences are still unknown.”
“We have already been able to see the impact caused to trade and travel, oil has also suffered a lot in recent days. Unfortunately, things can get worse and the property market will suffer a lot.”
The fear that a COVID-19 outbreak may occur in one of the cities of the United Kingdom is growing, the owners are having a hard time selling, and the buyers have taken a more sensible stance before buying a property.
The following days will be very important
Although the outlook is not very encouraging for investors, some experts believe that this crisis will not have a great long-term effect. The next few days will be very important to predict what consequences Coronavirus will have on the property market in Europe.
Long-term investments are the best option at the moment, although there is no absolute certainty that the Coronavirus pandemic will end soon.
Emma Wall, director of investment analysis at Hargreaves Lansdown, believes that the market will recover progressively.
Wall said: “Markets follow established patterns; when an international emergency occurs as the outbreak of the Coronavirus tends to change as the emergence lasts.”
“Investors have to be vigilant in the coming weeks and study market volatility. Long-term investments will not suffer too much; it is a matter of being patient and waiting for the market to resume its course. Desperation is not a good idea.”
For now, COVID-19 remains the main concern of governments worldwide and is expected to continue to harm a wide variety of economic markets worldwide.
