Challenges in the German Real Estate Market
The current situation of the real estate market in Germany is characterized by high prices and a lack of new constructions. This makes it difficult for many to acquire their own home. A central challenge is the almost non-existent offers under 500,000 euros, which usually only include construction sites or plots of land without completed buildings. Buyers hoping for new constructions are faced with long wait times.
Price Development and Construction Costs
The rising construction costs significantly influence the prices of new buildings, making it difficult for both private investors and savers to enter the market. Additionally, increasing interest rates tighten the financing conditions for property buyers, leading to higher monthly burdens.
Regional Differences in the Real Estate Market
While prices are particularly high in large cities, rural regions often offer better investment opportunities, even though regional differences remain. In some federal states such as Schleswig-Holstein, Baden-Württemberg, and Bavaria, moderate price increases are expected. In contrast, declining prices are forecasted in East Germany, with exceptions like Leipzig, where a price increase is anticipated.
Impact on Investors and Savers
The uncertainty in the market, along with rising rental prices, leads to insecurity among many potential homebuyers. This situation poses societal risks, as the dream of homeownership remains unfulfilled for many.
Potential Solutions
To counter the crisis, serial construction could be an efficient method to create more housing and reduce costs. Furthermore, political measures and funding programs could help make homeownership affordable again.
In summary, the German real estate market is currently characterized by significant challenges, but regional differences also offer investment opportunities.