Is a New Real Estate Crisis Coming? How to Recognize It and Prepare!

Property prices don’t rise forever. History shows that the real estate market has its natural rhythm – after a period of growth comes a slowdown or a crisis. Experts say that major shocks occur approximately every 15 to 18 years. The last time we experienced this was in 2008, when the mortgage bubble burst in the U.S. and the problems spread worldwide. More than 15 years have passed since then – which makes it logical to ask: Is another crisis coming?

What the Cycles Say

Even though the market never follows the calendar precisely, cycles do exist. After the 2008 crisis came a period of growth, cheap loans, and a construction boom. In recent years, however, new factors have entered the picture – the pandemic, rising interest rates, and higher energy costs. All this creates an environment where the market could cool down again.

We can already see warning signs in various parts of Europe:

• Commercial real estate (offices, shopping centers) is selling at the lowest levels in a decade.

• Too much money is flowing into housing – investors are buying up apartments and pushing prices upward, which can lead to a bubble.

• Banks remain stable for now, but regulators are warning – loans are mostly being repaid, but the ECB and other institutions point out that default risks could rise in the future, especially for smaller companies and commercial real estate.

• Political and regulatory tension – governments are trying to address housing affordability, but measures so far have had little real effect.

On the other hand, it’s not all bleak. Some analysts believe the real estate market can continue to grow for a while – housing demand remains strong and investments still deliver attractive returns.

What This Means for Property Owners

A real estate crisis doesn’t affect only developers or banks. Anyone who owns an apartment, house, or investment property can feel the impact. The most common effects include:

1. Falling Prices

• If the market cools, property values usually decline.

• For owners planning to sell, that means earning less than expected.

• For those living in their own homes, this might not matter much, since the loss is only “on paper.”

• For investors, buying with a margin of safety is crucial – otherwise they may end up “locked” in losses.

2. Slower Sales

• In a crisis, there are fewer buyers. Homes take longer to sell, often only with significant discounts.

• If you need to sell quickly, you’ll have to lower the price.

• If you can wait, it may take months or even years.

3. Higher Mortgage Payments

• When fixed rates expire, monthly installments increase.

• Banks may tighten lending standards, making refinancing or buying another property more difficult.

4. Shifting Rental Markets

• Investors who rent out properties should expect:

  • Rental demand may increase (as fewer people can afford to buy) – which is positive,

  • But tenants may also demand lower prices and be more picky

• Good-quality apartments in prime locations will always find renters, but older or overpriced projects may sit empty.

5. Segment Differences

Not all types of real estate are hit equally by a crisis:

• Rental apartments and family homes in good locations tend to be more stable.

• Offices, retail spaces, and older development projects are the most vulnerable.

• Vacation properties (cottages, seaside apartments) may be the first to be sold when people need cash.

How to Prepare for a Real Estate Crisis

Preparing for a crisis doesn’t mean selling everything or panicking. It’s more about having reserves and flexibility when market conditions worsen.

1. Diversify Your Investments

Don’t rely only on one type of property or one location. Spreading investments (e.g., apartments + logistics + another country) reduces risk.

2. Maintain a Financial Reserve

Crises mean sales may take longer and banks may tighten conditions. Having cash or other liquid assets set aside allows you to survive without being forced to sell.

3.Buy Smart – Ideally Below Market Price

The biggest mistake is buying “at any cost.” Purchasing with a margin of safety (e.g., 10–20% below market value) gives you room if prices fall.

4. Focus on Cash Flow, Not Just Price

A property that generates steady rental income retains value even in a downturn. What matters most is that rent covers the mortgage and basic expenses.

5. Stay Flexible

During a crisis, markets change faster than usual. If you can sell or rent quickly with a discount, you gain an advantage.

6. Watch Macroeconomic Signals

Crises don’t appear overnight – they can usually be spotted in trends. Keep an eye on interest rates, inflation, and rising unemployment.

How are we prepared at BizPartner Group

Thanks to the nature of our business, know-how, and experience, we can guarantee that we purchase every property at least 20% below market value. This margin is our fundamental safety cushion against negative market swings.

In addition, our strategy is built on speed and flexibility. We execute a high volume of transactions, allowing us to continuously adapt to current conditions. We hold properties only short term, so any price decline has little impact on our results. Finally, our portfolio is broadly diversified – we don’t operate in just one segment or one market, which further reduces risk.

Periods of crisis naturally bring new opportunities. On one side, there are clients who contact us about real estate opportunities and want to take advantage of the right timing to buy. On the other, there are those who find themselves in financially challenging situations and need quick but fair solutions. When stagnation comes, we can fully leverage our know-how – supporting both client groups while continuing to deliver very attractive results for our investors.

Conclusion: What’s Next?

A real estate crisis will come sooner or later. We don’t know exactly when, but we know it will. That’s why it’s so important to be prepared.

If you want to find out how not only to survive a real estate crisis but also to profit from it, book a consultation with BizPartner Group today. Together, we’ll explore options to protect your capital and take advantage of new opportunities which the future will bring.