All of this is no longer normal: This is the conclusion that comes to mind after reading the latest report by “Immobilienwise”.
While the purchase prices for condominiums and houses rose again in the double-digit percentage range last year, new contract rents increased only moderately.
The gap between what an apartment costs and what it brings in rental income is widening.
Anyone who is middle-aged and buys an apartment now will find it difficult to make a profit from it during their lifetime.
So why are so many people still grabbing it?
It's the lack of alternatives.
At a time when federal bonds do not bring any returns and price fluctuations on the stock exchanges are increasing, an investment in "concrete gold" still seems attractive to many people.
Regardless of whether you want to use the property yourself or rent it out.
Even if the latter only pays off over a long period of time, there is still hope of increases in value if the property is sold again after the speculation period has expired.
Since 2009, the prices for existing apartments have risen by almost 150 percent.
An investment in an index fund on the Dax would have been more worthwhile.
The growth is still impressive.
It is better not to speculate that this will always continue.
Interest rates for real estate loans are rising, still at a low level, but noticeably.
At the same time, demand is changing: After two years of Corona with home office and quarantine, an apartment in the city has lost its attractiveness, especially for families.
The desire for more space and greenery draws many people to cheaper regions.
This does not mean that the new federal government's new construction offensive is no longer needed.
More than ever, however, it is important to differentiate by location.
In rural areas, subsidies should primarily be used to renovate vacant properties and less for new construction.
This not only conserves resources, but also prevents new undesirable developments on the real estate market.