These properties are still bringing returns

residential building

Residential building on a street in Cologne. The price dynamics on the German real estate market are weakening. What does this mean for returns?

(Photo: dpa)

Frankfurt Those who have invested in real estate have mostly been right as investors in recent years. However, in view of the turnaround in interest rates, there are now signs of a trend reversal on the German real estate market: The price momentum for houses and apartments weakened across the board in the second quarter. This development has made many buyers ponder. How lucrative is real estate? A comprehensive study entitled “Where investing is still worthwhile” tries to give a concrete answer to this.

For this purpose, the analysis company Bulwiengesa has examined the respective return potential of all major asset classes in the German real estate market: office, residential, retail, logistics and special real estate. The probable internal rate of return on an investment in existing properties with a holding period of ten years was calculated. Compared to previous years, the result is comparatively sobering.

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