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Despite the pandemic, prices for apartments and houses rose sharply again last year - by more than nine percent, according to Postbank.
A home of your own with a little more space has evidently gained a new status in times of lockdown.
Many buyers are now paying astronomical prices.
Not only in the city, but also in the surrounding area for a long time.
But anyone who thinks it could go on forever should take a sober look at the latest forecast from Deutsche Bank subsidiary DB Research.
The experts predict that the price curve will flatten out significantly.
In Munich the zenith seems to have already passed, in Hamburg it is almost reached, other cities will follow in the next few years.
There are three reasons for this: Immigration to the cities is continuing, but it is becoming weaker.
At the same time, the supply of new apartments is increasing.
And the willingness of tenants and buyers to pay is reaching their limits.
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Of course, there are different locations, and some regions continue to get more expensive, while prices drop elsewhere.
But the real estate market is also not a treasure trove in which riches and prosperity multiply at will and by themselves.
Anyone who now buys in the belief that a house is a money box with built-in interest, no matter what it costs, is wrong.
Many members of the older generations know only too well that the laboriously saved own home costs quite a bit of money in operation and that in the end, less wealth is generated than you thought.
If you want to rent out, you have to be double careful.
In many places, the purchase prices can hardly be brought in through fair and law-abiding rental income.
And the hope of rent increases is limited in the post-pandemic economy.
On the contrary, it is not unrealistic to assume that more stringent rent regulations will come after the next federal election.
We've had ten extraordinary years of real estate.
Maybe now normality is just coming back.
"No bubble" - why residential properties do not suffer from Corona
How badly are the economic pressures of the long lockdown and bankruptcies affecting the residential property market in Germany?
How much does cheap money keep driving prices?
Real estate agents Dirk Wohltorf and Claus Michelsen from DIW in a video with forecasts.
Source: Matthis Kattnig / WORLD