This is one of the main trends identified in a recent survey carried out by Savills, based on an internal investigation on 50 experts from within the consultant’s entire global network, to take the pulse of the global housing market.
The housing market suffered the consequences of the Covid-19 pandemic, in particular a break in the number of transactions, since the confinement measures stopped sales in many countries. 90% of respondents stated that up to 30% of buyers stopped looking for assets.
In terms of the proportion of buyers who are still looking and who will travel as soon as the confinement is suspended, compared to those who suspended their plans, for now, the numbers were similar.
The survey also showed that most respondents stated that most buyers intend to achieve prices below pre-confinement values, especially in Spain. This trend is less visible within luxury destinations.
On the other hand, only 6% of sellers are considering taking or have taken their properties off the market. Most plan to lower or maintain their prices.
Sophie Chick, director at Savills World Research, commented in a release that «47% of respondents advanced that sellers will maintain their properties on the market at the current prices, although 48% anticipate some level of price reduction. In general, only a few sellers are leaving the market and most buyers are still looking for properties, creating many business opportunities after the end of confinement».
Note also for the fact that 30% of the markets point towards the need for legal changes in order to facilitate business. For example, France’s introduction of the AAE (Electronic Authentic Act) increased notaries’ flexibility, who now have the same probative power for an electronic document that they had for a paper document. We also saw some buyers using a local authorisation to keep transactions moving.