The energetic condition of a building is becoming more and more important.
(Photo: dpa)
The consequences of the sharp rise in interest rates and high energy costs are increasingly affecting the real estate market – with far-reaching consequences for many property owners. The risk of stranded assets, i.e. properties that can no longer be rented or sold, is increasing in both commercial and residential real estate.
Old office and retail buildings in poor locations can no longer be financed in some cases, and many owners are struggling with high vacancy rates. Extensive refurbishment and rental concepts are required immediately in order to make the properties marketable again.
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The upcoming ban on oil and gas heating also increases the pressure on homeowners and small landlords, especially on those who own old buildings that have not been renovated or post-war properties. Current figures are already showing that such real estate is more difficult to sell and can only be sold at a discount.
Owner-occupiers are therefore now faced with a difficult and far-reaching decision: either they invest a lot of money in a comprehensive renovation, for example to make the operation of a heat pump economical, or they have to seriously consider a sale.
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The challenge for landlords is even greater. At the latest when the heating system next fails, they must ask themselves whether they are willing to refurbish their property at such high costs that they often can no longer recover from rent increases. This becomes a big problem, especially outside of the big cities, in areas where rents are low.
A market like a year ago is not coming back
The worst way would be to sit out the issue, as many have been able to do in recent years due to the ever-rising real estate prices. Because one thing is clear: a situation like a year ago will not come back anytime soon.
Owners should therefore quickly decide which path they are going to take. Better today than tomorrow, they should deal with refurbishment concepts or find out for what price their objects can be sold at all. It is becoming increasingly clear that “business as usual” is no longer a serious strategy.
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