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Analysis: Purchase offers for apartments have doubled since the interest rate turnaround - opportunities for investors
According to a report from www.haufe.de, the purchase offer for residential properties in Germany has increased sharply since the interest rate turnaround in summer 2022. More than 100,000 existing single-family homes were offered for sale in fall 2023, an increase of 102 percent. There has also been an increase in the supply of condominiums and apartment buildings for investors. The European Central Bank (ECB) has raised its key interest rate several times since the end of July 2022 and is currently at 4.5 percent. This led to a decline in residential property prices in Germany by around 20 percent on average. Interestingly, this price drop did not lead to a reduction in purchase offers, but on the contrary, the offer...
Analysis: Purchase offers for apartments have doubled since the interest rate turnaround - opportunities for investors
According to a report by www.haufe.de, the purchase offer for residential properties in Germany has risen sharply since the interest rate turnaround in summer 2022. More than 100,000 existing single-family homes were offered for sale in fall 2023, an increase of 102 percent. There has also been an increase in the supply of condominiums and apartment buildings for investors.
The European Central Bank (ECB) has raised its key interest rate several times since the end of July 2022 and is currently at 4.5 percent. This led to a decline in residential property prices in Germany by around 20 percent on average. Interestingly, this price decline did not lead to a reduction in purchase offers, but on the contrary, the supply of single-family homes, condominiums and apartment buildings for sale increased massively. According to experts, this offers increased opportunities for private and institutional investors.
The increase in the purchase supply is most pronounced in existing single-family homes, in new single-family homes and in existing and new condominiums. This increase is also evident in multi-family homes and residential and commercial buildings.
According to Felix von Saucken, Head of Residential at Colliers in Germany, there are clear reasons for the increase in purchase offers and simultaneously falling purchase prices. In particular, owners who have owned properties for a long time still benefit from the high increase in value of the properties over the past few years when selling today. There are also concerns about stricter regulations for energy-efficient building renovations and upcoming changes as a result of the property tax reform.
Overall, the current real estate market is once again offering more opportunities for investors, due to the increased purchase offer combined with lower prices and an increased rapprochement between buyers and sellers in price negotiations.
Overall, the current real estate market is once again offering more opportunities for investors, due to the increased purchase offer combined with lower prices and an increased rapprochement between buyers and sellers in price negotiations.
Read the source article at www.haufe.de