29.11.2021 – 08:00
Engel & Völkers AG
- Holiday property as a refuge in the pandemic
- Potential buyers are increasingly focusing on potential returns
- Increased use of vacation property as a place for remote working
A number of factors play a crucial role in the decision to buy a vacation home. The most important purchase criterion, however, remains the location. This finding results from the current study that Engel & Völkers carried out with the Forsa Institute. A total of 506 holiday home owners and 511 people planning to buy a holiday home in the next one to two years were surveyed as part of the study. The survey was carried out on June 29. until July 30th, 2021 with the help of the representative online panel forsa.Omninet. “We are observing an increasing trend towards the acquisition of holiday properties as investment properties as well as the use as a place for remote working as an alternative to the mostly urban primary residence”, says Sven Odia, CEO of the Engel & Völkers group of companies, and continues: “Locations abroad are moving closer more and more in the focus of holiday property buyers. ”
The contact restrictions as a result of the corona pandemic have increasingly shifted the private and everyday working lives of many people home. “With the growing demands on the functionality of living spaces and the increasing amount of time we spend at home, the desire for even more space and retreat options in the second home grows,” explains Sven Odia. For most owners, the location was the most decisive criterion when purchasing a holiday property: 89 percent stated that they consider it to be (very) important when purchasing a property. For 72 percent, a garden or outdoor area was (very) important. The number of rooms played an important role for 57 percent of the owners and 46 percent attached particular importance to a generous living space.
Those interested in holiday properties pay even more attention to the location (94 percent) and the usability of a garden or outdoor area (84 percent) when purchasing a property. In addition, the number of rooms is of particular importance to them (67 percent). The majority (51 percent) also consider a generous living space to be a decisive factor in their income.
Location and location
Around two thirds of the owners (63 percent) stated Germany as the location of their vacation property, while only around 36 percent own a property abroad. In contrast, around half of those interested are planning to buy a holiday property in Germany, while 43 percent are looking specifically for property abroad.
The vast majority (77 percent) of the vacation property owners surveyed have a property in a rural location, while the proportion of vacation property in urban locations is only 22 percent. This difference is even more pronounced for those who intend to buy a holiday property: 85 percent of those interested in buying a property stated that they are looking for a property in a rural location, while only 10 percent prefer an urban location.
Own use, potential returns and rental period
“While the majority of the owners of holiday properties (70 percent) mostly use their property themselves, potential holiday property buyers are also increasingly looking at the potential for returns,” says Sven Odia. Only around one in five owners shares their property at times (21 percent). In this case, most owners rent the property for a period between 17 and 32 weeks (38 percent).
On the other hand, almost two thirds (65 percent) of those interested in holiday property plan to use their property themselves as well as to let it out. The planned rental period is sometimes even more than 32 weeks (24 percent). Almost a third intend to purchase their future property exclusively for their own use (32 percent).
Outlook: Remote working in your own holiday home is the trend
A total of 41 percent of current holiday property owners also use their property for mobile work. This trend was already apparent before the corona pandemic and has intensified since last year. This value is even higher for potential buyers. Around 64 percent plan to use their future vacation home for mobile work as well. “The opportunities offered by remote working extend the radius of action in our lives and work from our own holiday property to internationally sought-after second homes and holiday destinations,” says Sven Odia.
In addition to good accessibility, regions abroad are particularly interesting in which the purchase prices are still moderate and in which there are still good entry opportunities. The Algarve in Portugal or the Cyclades in southern Greece are increasingly in demand. “In addition to profit-oriented considerations, buying a holiday property is also always about personal preferences. When choosing a location, many of our customers often choose their favorite holiday destination. This can be done in the traditionally popular holiday regions in Germany or the Balearic Islands, as well as the Côte d’Azur in southern France , the Amalfi Coast in Italy, the Costa del Sol in Spain or the ski areas in Austria and Switzerland “, Sven Odia sums up.
You can find high-resolution images of Sven Odia and selected holiday properties below this Link ready for download.
Engel & Völkers AG
Global Corporate Communication Team
T: +49 40-36 13 11 37
Original content by Engel & Völkers AG, transmitted by news aktuell