2023-07-23 11:37:09
Two years ago, the real estate industry was running like clockwork. Although building prices increased, the prices for apartments and houses rose steadily. Property developers, developers and brokers did their business. With the turnaround in interest rates, that too has slowly changed. The rise in prices was a thing of the past, transactions fell significantly in the first half of the year, as did building permits. Construction is still going on, but not nearly as much as in previous years.
The federal government’s target of 400,000 new apartments per year will hardly be achievable in the coming years. Industry experts expect more or less half of the target for this year – and thus significantly less than in previous years.
In the cities, the housing market often remains tense without new buildings. Although many people are moving to the suburbs or further afield, at the same time the influx from abroad is increasing, especially in Germany’s larger cities. Times on the real estate market have changed. What happens in the search for living space is diverse – as the following experiences describe.
1. Keep your eyes open when choosing an apartment
It could also be an application for a job. A page-long and hand-written cover letter, filled with arguments as to why you are the right person for the offered rental apartment in Frankfurt’s Westend. Of course, including proof of salary, family information and whatever else the landlord wants to know. In the hope of standing out from countless other applicants, the search for a suitable apartment can cost time and nerves. Those who are then awarded the contract can count themselves lucky – even if it doesn’t always go that complicated, of course.
Sometimes it also happens that you are not invited to the viewing at all. If you discover a new advertisement in real estate portals, you have to be quick. Conversations sometimes go like this: “Thank you for your interest. Do you have time for a viewing tomorrow evening at 6 p.m.?” “No, unfortunately that doesn’t suit me. Would it also be possible the day after tomorrow?” “I’m sorry, then we’ll give preference to other interested parties.” Nice for the landlord, who can choose from a large pool of candidates. Annoying for those who have several hours to visit, are not flexible or cannot spend hours or even days searching. and.
2. Finally buying an apartment
In the phase of zero interest rates, it seemed almost hopeless to us to look at an apartment and calmly consider whether it might suit us. Potential buyers were faster than us – sometimes so fast that properties were sold shortly after the ads were even placed. A sports friend recently reported on auctions in which 30 prospective buyers were asked if they would be willing to pay a seven-digit amount for 120 square meters in downtown Frankfurt. Three remained, among them the contract was negotiated.
After the significant rise in interest rates, on the other hand, there was suddenly time to think, brokers suddenly went back to their actual work and answered detailed questions about critical points in the apartment. Less investment capital was evidently in the market. Even properties with a larger number of rooms remained on offer for so long that a purchase could be carefully considered. Prices already seemed to be reacting slightly to the lower demand. On the other hand, the monthly loan installments are higher – but on terms that were common 15 years ago. pik.
3. Rather than going to jail
Apartments would still be free between the prison and the railway tracks, right in the new development area of Dörnberg, which, according to a searcher from the Regensburg area, resembles the satellite town from the Astérix magazine that gives it its name. But if you want to find an apartment, you either have to accept such location peculiarities, then the rent is also reasonably affordable.
Or you move far outside and have to commute to work downtown, which is actually not the point if you only need about ten minutes more by car from your rural home. The last option would be to live in an old apartment. Not one of the tranquil old town buildings with which the medieval student town can shine. No, rather run-down stays. “But it will be renovated in the next two years,” assures the landlord. So a construction site on the doorstep for two years. Would you rather go to jail then? After all, the prisoners make less noise than the construction workers. brn.
#real #estate #world #works