The future price level on the real estate market also depends on rents.
(Photo: dpa)
Dusseldorf Deutsche Bank’s real estate market forecasts always cause a stir. In boom times they predicted an end to rising prices, and most recently they saw real estate values rising in the long term despite the current correction. In a recent evaluation, analyst Jochen Möbert dealt with the question of whether real estate serves as protection against inflation – and sees this as given in the current situation. “In the long term, prices should be able to reach new highs,” he writes.
According to DB Research, inflation affects house prices in two ways. First, as can be clearly seen at the moment, high inflation rates have increased interest rates in the short term.
Higher financing costs weighed on house builders and investors and dampened prices. “Thus, the nominal interest rate shock that has been going on since the end of 2021 has ended the house price boom,” said the analyst.
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