Dusseldorf The real estate market in Germany has boomed in recent years. According to the Federal Statistical Office, in the fourth quarter of 2021 the prices for residential real estate rose by 12.2 percent, the fastest since 2000. But the dream of buying a house could soon turn into a nightmare – because the German real estate market may be facing a turning point.
On the one hand, interest rates for real estate loans are rising again, and on the other hand, raw material shortages are driving up construction prices. At the same time, the climate requirements for new buildings are becoming increasingly strict. This means that the risks involved in making a purchase have increased, especially for private individuals.
This is already noticeable in the market. Experts from the real estate investment house Savills have calculated that in May 2022 less than half as many residential buildings were sold in Germany as the average for the last five years.
“Too little has been built for years,” explains Handelsblatt real estate expert Kerstin Leitel. “According to estimates by politicians and the construction industry, 350,000 to 400,000 apartments would have to be built every year. In 2021, however, only 290,000 apartments were completed.” That is why, says Leitel, many people are currently unable to find an apartment – neither for sale nor for rent.
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What does all this mean for the future of the German real estate market? What do buyers have to be prepared for now if they want to buy a house or an apartment? And who can afford a property under these conditions? Host Tobias Gürtler talks about this with Kerstin Leitel in this episode of “Handelsblatt Today”.
The Handelsblatt real estate expert and a team examined the current situation on the German real estate market and identified trendy areas. “Meanwhile, you have to take a close look at where the purchase is still worthwhile,” she says.
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