IDEAS home Printed from https://ideas.repec.org/a/vrs/remava/v31y2023i1p10-24n6.html
   My bibliography  Save this article

The Impact of Covid-19 Pandemic on Value Migration Processes in the Real Estate Sector

Author

Listed:
  • Kowalski Michał J.

    (1 Faculty of Management, Wroclaw University of Science and Technology, ul. Wybrzeże Stanisława Wyspiańskiego 27, 50–370 Wroclaw, Poland)

  • Wang Tong

    (2 Architecture and the Built Environment, Delft University of Technology, Mekelweg 5, 2628 CD, Delft, the Netherlands)

  • Kazak Jan K.

    (3 Institute of Spatial Management, Wroclaw University of Environmental and Life Sciences, ul. Grunwaldzka 55, 50-357, Wroclaw, Poland)

Abstract

The COVID-19 pandemic period brings huge uncertainty, especially for the real estate sector. On the one hand, restrictions on the mobility of a population, decline in travel demands, popularization of remote work and education models caused doubts among investors questioning the future of the sector and the functions of real estate. On the other hand, the large supply of cash after the first waves of the pandemic and the upcoming increase in inflation resulted in many investors boldly investing cash in real estate, considering them as assets of stable value. This research aims to analyze the processes of value migration among real estate companies listed on the Warsaw Stock Exchange during this turbulent process. We analyzed the changes in the main drivers of value and the migration rates of the real estate sector based on data for 2018, 2019, 2020 and Q3 2021. The first period of the pandemic is the time of the collapse of the main profitability factors, sales and profitability of sales decline in the entire sector. However, the financial pillars of the analyzed companies are stable and we are not seeing signs of liquidity problems or a significant increase in debt. The second year of the pandemic is a significant reflection of most of the drivers of value, often to levels higher than those observed before the pandemic. Investors seem to remain insensitive to turbulent changes in accounting measures of effectiveness. We observe the relative stability of market measures. The processes of the migration of values from and to the sector do not show significant changes when comparing the periods before and during the pandemic. We observe various intensities of the studied phenomena in various groups of the real estate segment.

Suggested Citation

  • Kowalski Michał J. & Wang Tong & Kazak Jan K., 2023. "The Impact of Covid-19 Pandemic on Value Migration Processes in the Real Estate Sector," Real Estate Management and Valuation, Sciendo, vol. 31(1), pages 10-24, March.
    • Handle: RePEc:vrs:remava:v:31:y:2023:i:1:p:10-24:n:6
    DOI: 10.2478/remav-2023-0002
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/remav-2023-0002
    Download Restriction: no
    File URL: https://libkey.io/10.2478/remav-2023-0002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Agnieszka Stacherzak & Maria Hełdak & Ladislav Hájek & Katarzyna Przybyła, 2019. "State Interventionism in Agricultural Land Turnover in Poland," Sustainability, MDPI, vol. 11(6), pages 1-13, March.
    2. Roddy Allan & Ervi Liusman & Teddy Lu & Desmond Tsang, 2021. "The COVID-19 Pandemic and Commercial Property Rent Dynamics," JRFM, MDPI, vol. 14(8), pages 1-24, August.
    3. Praveen Ranjan Srivastava & Kinshuk Sengupta & Ajay Kumar & Baidyanath Biswas & Alessio Ishizaka, 2022. "Post-epidemic factors influencing customer's booking intent for a hotel or leisure spot : an empirical study," Post-Print hal-03601015, HAL.
    4. Xiaoling Chu & Chiuling Lu & Desmond Tsang, 2021. "Geographic Scope and Real Estate Firm Performance during the COVID-19 Pandemic," JRFM, MDPI, vol. 14(7), pages 1-16, July.
    5. Chuanhao Tian & Xintian Peng & Xiang Zhang, 2021. "COVID-19 Pandemic, Urban Resilience and Real Estate Prices: The Experience of Cities in the Yangtze River Delta in China," Land, MDPI, vol. 10(9), pages 1-17, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Woei Chyuan Wong & Edie Erman Che Johari & Shazida Jan Mohd Khan & Siti Nurazira Mohd Daud & Mohd Yushairi Mat Yusoff & Hafirda Akma Musaddad, 2023. "From Outbreak to Vaccination: An Analysis of the Commercial Property Market Reaction to COVID-19 in Malaysia," International Real Estate Review, Global Social Science Institute, vol. 26(3), pages 267-298.
    2. Chuanhao Tian & Xintian Peng & Xiang Zhang, 2021. "COVID-19 Pandemic, Urban Resilience and Real Estate Prices: The Experience of Cities in the Yangtze River Delta in China," Land, MDPI, vol. 10(9), pages 1-17, September.
    3. Shangkun Yu & Ruili Wang & Xuejie Zhang & Yi Miao & Chengxin Wang, 2023. "Spatiotemporal Evolution of Urban Shrinkage and Its Impact on Urban Resilience in Three Provinces of Northeast China," Land, MDPI, vol. 12(7), pages 1-22, July.
    4. Mariusz Dacko & Aleksandra Płonka & Łukasz Satoła & Aneta Dacko, 2021. "Sustainable Development According to the Opinions of Polish Experts," Energies, MDPI, vol. 14(17), pages 1-18, August.
    5. Yuliia Medvedeva & Anatolii Kucher & Joanna Lipsa & Maria Hełdak, 2021. "Human Health Risk Assessment on the Consumption of Apples Growing in Urbanized Areas: Case of Kharkiv, Ukraine," IJERPH, MDPI, vol. 18(4), pages 1-14, February.
    6. Wang, Bingbing, 2022. "Housing market volatility under COVID-19: Diverging response of demand in luxury and low-end housing markets," Land Use Policy, Elsevier, vol. 119(C).
    7. Petrescu-Mag, Ruxandra Malina & Petrescu, Dacinia Crina & Todoran, Silviu Ciprian & Petrescu-Mag, Ioan Valentin, 2021. "Us and them. Is the COVID-19 pandemic a driver for xenophobia in land transactions in Romania?," Land Use Policy, Elsevier, vol. 103(C).
    8. von Hobe, Cord-Friedrich & Mußhoff, Oliver, 2020. "On the effectiveness of restricted tenders as a form of policy intervention on agricultural land markets," 60th Annual Conference, Halle/ Saale, Germany, September 23-25, 2020 305592, German Association of Agricultural Economists (GEWISOLA).
    9. Raul-Tomas Mora-Garcia & Maria-Francisca Cespedes-Lopez & V. Raul Perez-Sanchez, 2022. "Housing Price Prediction Using Machine Learning Algorithms in COVID-19 Times," Land, MDPI, vol. 11(11), pages 1-32, November.
    10. Lasha Labadze & Mohamed M. Sraieb, 2023. "Impact of Anti-Pandemic Policy Stringency on Firms’ Profitability during COVID-19," Sustainability, MDPI, vol. 15(3), pages 1-15, January.
    11. von Hobe, Cord-Friedrich & Musshoff, Oliver, 2021. "On the effectiveness of restricted tendering as a form of policy intervention on agricultural land markets," Land Use Policy, Elsevier, vol. 103(C).
    12. Kowalski Michał J. & Kazak Jan K., 2020. "Value-Based Management for Real Estate Developers’ Activities," Real Estate Management and Valuation, Sciendo, vol. 28(4), pages 48-62, December.
    13. von Hobe, Cord-Friedrich & Mußhoff, Oliver, 2020. "On the effectiveness of restricted tenders as a form of policy intervention on agricultural land markets," 60th Annual Conference, Halle/ Saale, Germany, September 23-25, 2020 305592, German Association of Agricultural Economists (GEWISOLA).
    14. Vasilii Erokhin & Tianming Gao & Anna Ivolga, 2020. "Structural Variations in the Composition of Land Funds at Regional Scales across Russia," Land, MDPI, vol. 9(6), pages 1-39, June.
    15. Shian Zeng & Chengdong Yi, 2022. "Impact of the COVID-19 pandemic on the housing market at the epicenter of the outbreak in China," SN Business & Economics, Springer, vol. 2(6), pages 1-20, June.
    16. Nicholas Apergis, 2022. "Residential Housing Prices, COVID-19 and the Role of the Vaccination Program: Evidence from US State Panel Data," International Real Estate Review, Global Social Science Institute, vol. 25(4), pages 461-478.
    17. Olha Kravchenko & Anatolii Kucher & Maria Hełdak & Lesia Kucher & Joanna Wysmułek, 2020. "Socio-Economic Transformations in Ukraine towards the Sustainable Development of Agriculture," Sustainability, MDPI, vol. 12(13), pages 1-16, July.
    18. Abdulmalik Fatimah Binta & Udoekanem Namnso Bassey, 2022. "Commercial Real Estate Rental Variation in Ilorin, Nigeria," Baltic Journal of Real Estate Economics and Construction Management, Sciendo, vol. 10(1), pages 140-155, January.
    19. Alina Kulczyk-Dynowska & Agnieszka Stacherzak, 2020. "Selected Elements of Technical Infrastructure in Municipalities Territorially Connected with National Parks," Sustainability, MDPI, vol. 12(10), pages 1-14, May.
    20. Marii Rasva & Evelin Jürgenson, 2022. "Europe’s Large-Scale Land Acquisitions and Bibliometric Analysis," Agriculture, MDPI, vol. 12(6), pages 1-13, June.

    More about this item

    Keywords

    COVID-19; real estate market; value migration;
    All these keywords.

    JEL classification:

    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:remava:v:31:y:2023:i:1:p:10-24:n:6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.