Commercial real estate prices and COVID-19

Martin Hoesli and Richard Malle
Additional contact information
Martin Hoesli: GSEM - Geneva School of Economics and Management, University of Aberdeen
Richard Malle: LIRSA - Laboratoire interdisciplinaire de recherche en sciences de l'action - CNAM - Conservatoire National des Arts et Métiers [CNAM], BNP-Paribas

Post-Print from HAL

Abstract: Purpose The article analyzes the effects of the coronavirus disease 2019 (COVID-19) pandemic on commercial real estate prices, with a particular focus on European markets. Design/methodology/approach The authors start by highlighting caveats to bear in mind when referring to direct real estate indices. The authors then analyze the behavior of commercial real estate prices during the pandemic, emphasizing differences across property types. For that purpose, the authors use data for both direct and listed real estate and further discuss changes in the main factors affecting commercial real estate pricing. The article then turns to discussing the likely trajectory of commercial real estate prices in the future. Findings The authors report that retail and hospitality properties and to a lesser extent office buildings have been affected the most by COVID-19, while the residential and industrial sectors have been less affected by the crisis. The authors maintain that the future trajectory of prices will vary across sectors and that the type and location of assets will become increasingly important in their valuation. Originality/value This paper provides for a better understanding of the behavior of commercial real estate prices during the COVID-19 pandemic.

Keywords: Pandemic; COVID-19; Commercial real estate prices; Office; Retail; Hospitality; G12; G23; R33 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-ure
Note: View the original document on HAL open archive server: https://cnam.hal.science/hal-03611776
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published in Journal of European Real Estate Research, 2022, ⟨10.1108/JERER-04-2021-0024⟩

Downloads: (external link)
https://cnam.hal.science/hal-03611776/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03611776

DOI: 10.1108/JERER-04-2021-0024

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().