Dusseldorf The German real estate market is currently undergoing a turnaround: after almost thirteen years of a real estate boom, the mood is changing. Potential buyers are therefore faced with two main challenges: On the one hand, the general price development, in which inflation, supply bottlenecks and the general scarcity of raw materials play a major role. The other key aspect is that the majority of buyers depend on credit – and that’s where interest rates rise.
“The increased interest rate environment, coupled with the generally high price development, is a real poison cocktail for the real estate market,” says Carsten Klude in the podcast Handelsblatt Today.
In an interview with host Agatha Kremplewski, the chief economist at MMWarburg in Hamburg and head of asset management talks about how the real estate market is developing for investors.
“I wouldn’t paint the situation completely black now, but one has to assume that the end of the rapid and strong price increases is in sight. However, I currently consider a real estate crash to be unlikely, because the demand for real estate will remain,” says Klude.
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However, rising rental prices offer opportunities for investors: “The concrete gold gives cautious investors in particular a safer feeling,” explains the economist. You can hear what other opportunities and risks the real estate market currently offers in the podcast.
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