The rural exodus continues, many Germans continue to move to the cities. In particular, the metropolitan cities are experiencing a large influx, which is not least due to the good job opportunities. However, this development has not left its mark on real estate prices. Home ownership prices have risen dramatically over the past decade.
If you want to buy an apartment or even a house in cities like Berlin, Frankfurt, Hamburg, Munich or Stuttgart today, you should have big savings or a correspondingly high income. For years, prices have only been one direction, which is why residential properties have become unaffordable for a large part of the population.
High real estate prices in the metropolitan cities
So it is not surprising that a relocation has long since taken place. People are increasingly attracted to the bacon belts of big cities, because real estate prices are still a bit lower there. Real bargains can hardly be done there either, builders and buyers must also dig deep into their pockets.
For private buyers is added that they are in competition with large investors. Several German metropolitan cities are among the most sought after plots for real estate investors in Europe. Although institutional investors are primarily targeting commercial property, the housing market has also attracted the attention of professionals in recent years.
However, Spiegel Online writes with reference to a recent study, professional investors have become more cautious. As can be seen from a survey of over 800 real estate professionals, many consider the German market overpriced. This can also be considered as a warning to private builders and buyers: who strikes now, buys at maximum prices.
Some market observers even dare to put terms such as real estate bubble or price bubble in the mouth. In other words, some experts believe it may be possible for prices to fall and objects to become cheaper again. However, this is not the broad opinion of the experts. Many believe prices will not rise any more but they do not expect price drops.
Further increase in rents expected
In contrast, the development of rental prices is assessed differently. Many experts believe that the end of the price bar has not yet been reached. Accordingly, rental prices could continue to rise in the coming years. The rents have risen considerably recently, even for very small apartments cities such as Munich or Hamburg are called extremely high rents.
Many prospective buyers feel pressured by this circumstance. On the one hand, they shy away from buying homes, on the other hand, rising rents are expected. Accordingly, the pressure can be high, but to decide for the home acquisition.
Object search is crucial
Despite the current high real estate prices, the purchase does not have to be bad. On the contrary, it offers the opportunity to permanently escape the rise in rents and thus lay the foundation for more financial security in old age. In addition, it depends primarily on where and under what conditions a home is purchased. Many objects may be expensive, but there are also bargains on the market.
At the same time, the situation on the financing market is still encouraging. Although interest rates have already risen, overall the construction field remains very favorable. Some builders and buyers are even entitled to the new building costs, which can reduce the cost of home buying in addition. If you have questions about financing and funding, we are happy to help.