The impact of the COVID-19 pandemic on the activity of residential real estate market in small cities – case study of Nowy Targ, Poland
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Department of Land Surveying, University of Agriculture in Krakow, Poland
These authors had equal contribution to this work
Submission date: 2024-04-11
Final revision date: 2024-05-12
Acceptance date: 2024-05-14
Publication date: 2024-06-30
Corresponding author
Monika Maria Siejka
Department of Land Surveying, University of Agriculture in Krakow, al. Mickiewicza, 31-120, Krakow, Poland
Geomatics, Landmanagement and Landscape 2024;(2)
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ABSTRACT
The economic problems caused by the Covid-19 pandemic have not spared the real estate sector. It seemed that the bear market on the residential premises rental market would bring a decline in transaction prices. Meanwhile, the opposite trend was taking place on the real estate market. This situation has strengthened the perception of investing in real estate as a stable and, above all, safe source of investment compared to other forms of capital investment. Therefore, the aim of this research is to attempt to assess the impact of the pandemic on the residential real estate market in the city of Nowy Targ in 2017–2022. The research period was designed to test the market behaviour in connection with the pandemic. By analysing the distribution of prices and the number of transactions in the period before and during the pandemic, one can assess whether the pandemic had an impact on the local market. The research showed that the pandemic did not have a significant influence on the level of prices or the number of transactions, but it did lead to huge fluctuations in unit prices caused by uncertainty in all sectors of the economy. The obtained results provide valuable information to investors operating in the real estate market on changes in price levels in unusual market conditions, and thus enable making informed decisions regarding investments in residential real estate.