International vacation rentals:
A comeback in autumn
The corona crisis has also hit the market for international residential and holiday homes. It is currently impossible to travel abroad and visit properties on site, mainly due to travel restrictions. The market is on a break, if only for the short term. There will be a comeback by autumn at the latest, or when travel restrictions are relaxed, says Richard Buxbaum, Head of the Residential Property Department. “Right now our customers want to feel free and independent, enjoy nature and maybe even use their residence abroad as a temporary alternative work location.” “Despite the current situation, Austrians are showing particular interest in international residential properties that are easily reached by car. The distance doesn't matter that much”, says Martina Gruber of OTTO International Network Management.
Tuscany, Marbella, Provence – the current market situation
How are the markets developing in countries that are especially popular with Austrians for a second or holiday home, such as Tuscany, Marbella, Provence and Berlin? Certified real estate agents from our international network with Knight Frank were asked to share their expertise for the Immobilien-Kompass real estate guide.
Tuscany: Market could be flooded with unoccupied Airbnb flats
“Austrians and Germans are now in a geographically better position. After the borders reopen, they can jump in the car to go and look at cheap properties, which the British and Americans can’t do”, says Bill Thomson, a real estate specialist for Tuscany at Chianti Real Estate.
In fact, there will be some bargains, but only in certain sectors. “The market could be flooded with small flats purchased for use as Airbnb rentals, as some owners are now in default with the loans.” However, the traditional farmhouse in Tuscany has hardly been affected by any loss in value, says Thomson.
Marbella: Not as much impact on prices in the top segment
María del Mar Poza of dm properties expects Marbella to see a fall in real estate prices, but this will depend heavily on the location and type of property. “There will be smaller declines in top properties and prime locations, and we expect the market to recover again in the second half of 2020, and especially in 2021.” As in previous crises, the top price segment is more resilient. She is optimistic, given that “Marbella is a privileged location with one of the best climates in Europe, a low population density, many green spaces and golf courses, and a good infrastructure, including public and private health services.”