Housing Market in Central European City during the COVID-19 Pandemic

Abstract

Many aspects of the global economy changed during the Covid-19 pandemic, including the real estate market. This study examines the primary residential property market in Opole during the Covid-19 pandemic. It uses property transaction data from 2018 to 2021 to conduct statistical analyses and independent group tests and also takes into account the real-estate price trend from 2014 to 2020. The study finds that both property prices and preferences relating to the structure and location of housing changed during the pandemic. In the case of Opole, the number of transactions involving residential units in the primary market increased in 2020 compared to previous years. After adjusting the unit price value of residential properties for the trend in the pre-pandemic period, the study finds that there was also an increase in property transaction prices. The study confirms three important facts relating to phenomena that are occurring globally in cities today. First, local communities are more diverse in terms of the economic heterogeneity of real estate buyers. Second, unlike big urban areas, small cities may be more resistant to the process of citizens migrating to suburban areas, thereby limiting the negative phenomenon of urban sprawl. Third, the housing real estate market in small cities is considered a reliable form of investment of assets, as real estate prices increased during the Covid-19 pandemic.