Denmark has lifted all covid restrictions. What other countries are easing their «grip», and what does this mean for the real estate market?
Denmark has become the first country in Europe where absolutely all covid restrictions have been lifted. According to European media, this applies not only to the mask regime, but also to the previously mandatory vaccination. What restrictions still remain? And will such a decision affect the real estate market?
What has changed in Denmark since February 1, 2022?
As of February 1, 2022, Denmark has lifted all restrictions related to the COVID-19 pandemic. Now the inhabitants of this country can absolutely freely visit any public institutions without any obstacles. At the same time, even wearing a mask is optional — everything depends on the wishes of the Danes themselves. However, the authorities still recommend wearing a mask when visiting a hospital or nursing home (but it is no longer required).
Also, the country’s authorities have canceled covid passports and forced vaccination. The only measure that is still mandatory is taking a PCR test for those who have just arrived in the country. What is interesting: if the test turns out to be positive, then the visitor is recommended (!) to go into self-isolation for 4 days. At the same time, those who were in direct contact with the sick person are not required to self-isolate.
Why did Denmark suddenly decide to take this step? Is the fight against the pandemic over? In fact, these actions are based on the analysis of specialists and the high level of vaccination of the local population. The fact is that Omicron, according to local doctors, is no more difficult than a common cold or flu, and the burden on medical institutions is not so significant. Less than 1% of the population gets sick every day in this country
Along with Denmark, there are several other countries that have decided to loosen their grip on covid. For example, Georgia has also abolished covid passports, Austria will no longer have a lockdown for the unvaccinated in February, and there is now no curfew in Catalonia and visitors to bars, restaurants and fitness centers no longer need to present a vaccination certificate. In the UK, since the end of January, it is no longer necessary to wear masks on public transport and shops, and there is no need for covid passes when visiting public places.
Is it time to invest in real estate? Or what does it all mean for the real estate market?
The abolition of covid restrictions (albeit not in all countries) will certainly affect the trends in the global real estate market. Those countries that are already lifting restrictions are more attractive to far-sighted investors, which means they can count on additional financial injections into the country.
For many inexperienced investors, Denmark seems too «remote» and expensive to buy real estate there in order to rent it out. But, if you analyze information from different sources, you can be surprised to find that in the fall of 2021, according to the Gross Rental Yield criterion (gross annual rental income), real estate in Denmark with an indicator of 4.84 is in 13th place in the pan-European ranking. For comparison, real estate in Spain has an indicator of 4, Greece — 3.97, Germany — 2.95.
In addition, in Denmark, investing in real estate is one of the most affordable ways to save (and increase) your funds. Taking into account the fact that this country has negative deposit rates, the demand for real estate among the local population is quite high, which means that apartment prices in Denmark will only grow in the near future. This is confirmed by the National Statistical Committee, which analyzed the growth in real estate prices in the last 5-6 years. During this time, the cost of apartments and houses in Denmark increased by an average of 3-4% per year (in some segments, the growth was up to 7%).
However, it is still not so easy for a foreigner — a number of restrictions apply in this country. Only those who have lived in this country for more than 5 years, or EU citizens working in Denmark, or foreigners who have a residence permit or a business permit, can buy an apartment or a house in Denmark.
On the other hand, the easing of covid restrictions in general is encouraging, and one can consider the option of investing in real estate in other EU countries.
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