In recent years, German private individuals have slammed the real estate market properly. When the financial crisis raged, the housing market had literally collapsed, but now residential properties are in high demand – especially by investors.
Two reasons why this led to this development
There are two reasons why this led to this development. For one thing, there are many people who are very afraid of the euro crisis. For fear that the euro could lose much in purchasing power, they invest in real assets, including real estate. On the other hand, the interest rates are in the basement. It has become difficult to get good interest income. Accordingly, the fear of inflation increases. Real estate in turn enjoys the reputation of being a good inflation protector.
Due to the high demand more experts in the emergence of a real estate
Due to the high demand more experts in the emergence of a real estate bubble. In principle, it is advisable not to rush to buy. It is quite possible that price corrections will occur. However, the risk is classified as low – especially if you buy well thoughtfully. This means that it is not bought at overpriced prices. In addition, the location plays an important role.
Property prices have picked up the most
In the economically strong regions, property prices have picked up the most. The same applies to the rents. It is expected that cities such as Munich, Hamburg or Frankfurt will continue to receive strong influx in the coming years and therefore both rental prices and rental prices will continue to rise. Accordingly, investors can not go wrong.
Of course, outside the cities or in the outskirts built vigorously. However, this fact can also be considered an advantage. Especially for members of the middle class, the central city locations are slowly becoming too expensive. Demands on the outskirts should therefore increase.