What does a second lockdown in Europe mean for its housing markets?
Rising infection rates have prompted European governments to tighten restrictions, but rules and enforcement varies between countries
2 minutes to read
Despite Europe’s economic backdrop, the region’s housing markets displayed strong resilience during the first lockdown. Pent-up demand from homeowners confined to small apartments or homes lacking outdoor space took decisive action once measures were eased, and those with big enough budgets decided the idea of a second home that they had been toying with for several years, was now a must-have.
Our Knight Frank team had a busy summer with markets such as Provence, Tuscany, the Alps, Lake Geneva and the Cote d’Azur all seeing sales surge.
The usual September lull was pushed into October as some degree of normality returned to the region; most schools returned, university campuses filled up and those that had missed the office buzz began their commute, albeit on a less frequent basis.
Lockdown 2.0 has the capacity to invoke two opposing responses. Firstly, as the economic headlines deteriorate – unemployment, redundancies and bankruptcies are set to increase – homeowners may put plans on hold until a clear path out of the pandemic is identified. On the flip side, we’re heading into winter and as homeowners stay indoors more, the shortcomings of their current property may be even more apparent, potentially leading to another release of activity in early 2021.
One thing is for certain, lockdown invites retrospection. Time with family and friends is being prioritised and once a vaccine is available and travel restrictions ease we expect Europe’s top second home destinations to see heightened demand as people look to claw back the valuable downtime they’ve missed in 2020 and make plans for the future.
The lowdown on lockdown 2.0
Below is a roundup of the current rules and timelines for the respective lockdowns across major European countries. Most housing markets can still function, viewings are permissible, properties can transact, and people can move house. Clearly, with travel restrictions still in force for international buyers, this is mostly relevant for domestic buyers.
UK residents are advised not to travel abroad before 2nd December unless travelling for work, education or, legally permitted reasons and the full Government guidelines can be found here. Travel may be possible after this date as most European countries have not closed their borders, but visitors must adhere to each country’s respective quarantine rules.
**In the red region an official invite from the agency is required which must be presented if stopped by officials. Only two people are allowed per viewing and PPE is necessary.
** Viewings and house moves can be undertaken if you are not in a region in a lockdown area and depending on the restrictions of each autonomous community. Borders remain open for European Union or Schengen area residents.
The landscape is changing rapidly with measures often revoked or amended with little warning, sign up to our European research to keep up to date with the latest news.
To discuss any property requirements you may have please contact Mark Harvey