Introduction:

The COVID-19 pandemic continues to have an unprecedented impact across Germany and the globe. This resource provides up-to-date insights into how the virus is affecting various real estate sectors.

Current Situation

  • The measures introduced by the Federal Government to contain the pandemic are proving effective.
  • With the new Corona Warning App, the Federal Government has had a useful tool at its disposal since last week to contain the further spread of Covid-19 in time. To date, according to the Robert Koch Institute, more than 11.8 million smartphone users have downloaded the corona warning app in the first week after its release.
  • A further decline in the number of new infections was and is decisive for (further) relaxation, which was decided on 6 May at the conference of the Federal Government and the Länder. Recently, however, the number of corona cases has risen again slightly. This was triggered by higher case numbers in hotspots in Berlin, Göttingen and Gütersloh. For the district of Gütersloh, the North Rhine-Westphalian state government again issued a lockdown.
  • Contact restrictions in Germany generally extended until 29 June. However, the restrictions have been eased to the extent that members of two households can meet in future.
  • Establishment of an emergency mechanism (infection ceiling): The new rule provides that measures will be tightened if more than 50 newly infected persons per 100,000 inhabitants occur in a district or town in the last 7 days.
  • Slow but steady increase of social life and economy.
  • Gradual return to normality, albeit a new normality.
  • There are signs of a turnaround in the German economy: the ifo business climate index rose more strongly than ever before in June, from 86.2 points (after 79.7 points in the previous month). In particular, future expectations have increased in all sectors. Likewise, the current Markit PMI Purchasing Managers' Indices (manufacturing industry and service sector) for the German economy are better than expected: The overall index rose from 32.6 to 45.8 points in June, thus approaching the 50-point mark again, which signals growth. Previously, the ZEW Indicator of Economic Sentiment signalled that the economic trough will be passed in summer 2020.
  • Even if the latest developments give cause for further increasing optimism, the pandemic is leaving its mark in almost all sectors, in some cases quite clearly. Above all, the development of the labor market remains to be seen. Although job losses have slowed further from the record level in April, the accommodation sector, gastronomy, but also the aviation industry and retail trade are facing considerable cutbacks.

Last updated on June 24, 2020

Covid-19

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