2023-08-26 14:09:07
The drop in prices for residential real estate will not result in slightly cheaper rents in the expensive metropolitan areas. On the contrary: they continue to rise. Because building interest, which has quadrupled in some cases, makes real estate financing significantly more expensive. At the same time, prices for condominiums and homes remain comparatively high.
As a result, fewer and fewer prospective buyers can afford to purchase a residential property, particularly in the conurbations, which continue to be very expensive. Therefore, they will have to switch to rented apartments. The result is higher demand and thus pressure on rental prices. The figures from the Association of German Pfandbrief Banks show this effect.
While residential property prices fell 5.4 percent year-on-year in the second quarter, new lease rents rose 6.2 percent. Rental apartments are in greater demand because fewer and fewer private households can afford their own property. The situation on the housing markets in the major cities will remain tense for the time being.
Markus Frühauf, Frankfurt Published/Updated: Recommendations: 7 A comment by Christian Siedenbiedel Published/Updated: , Recommendations: 75 Markus Frühauf Published/Updated: , Recommendations: 7
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