Dusseldorf Residential real estate prices fell in the first quarter of this year – by 1.9 percent compared to the previous quarter and even by 6.2 percent compared to the same quarter last year. Nevertheless, for many, the dream of owning their own home is a long way off.
Blame the high interest rates of around four percent. “People are switching to the rental market or simply staying in their previous apartment,” says Handelsblatt reporter Julian Trauthig. So more people would encounter a scarce offer. That leads to rising rents.
The problem is exacerbated by the slump in new residential construction: “Industry associations have calculated that you would have to charge around 20 euros in rent per square meter for a new building to be profitable,” explains Trauthig. Even in medium-sized cities, such prices are unrealistic. The prospects for rental development are bleak: “They will continue to rise, mainly because not much is happening with new construction,” suspects Trauthig.
Also: Investigative reporter Lars-Marten Nagel talks about the court decision on the Adler Group’s rescue plan.
More: Rising interest rates – this is how you reduce the costs of follow-up financing
We have an exclusive subscription offer for you as a Handelsblatt Today listener: Test Handelsblatt Premium for four weeks for €1 and always stay informed about what’s moving the financial markets. More information is available here.
If you have any comments, questions, criticism or praise for this episode, please email us at: [email protected]
We can now be reached on WhatsApp, Signal and Telegram via the following number: 01523 – 80 99 427