German property buyers: risk high, but willingness to buy remains strong!

German property buyers: risk high, but willingness to buy remains strong!

The real estate market in Germany continues to be an important topic among future buyers. A recent survey by Dr. Klein and horizoom GmbH, which surveyed over 1,000 people who would like to purchase a property in the next five years, show interesting trends in risk perception and willingness. According to the survey, 39% of respondents rate the risk of buying a property as high, while 40% rate it as medium and 21% rate it as low. This suggests that there is considerable uncertainty among the population when it comes to investing in real estate.

There is a striking difference between the regions of Germany. 45% of respondents in East Germany perceive the risk to be high, while only 37% of West Germans believe this. Gender differences are also clearly visible: men tend to place greater weight on risks, with 42% rating the risk as high compared to 35% of women. This is also reflected in willingness to take risks, as 34% of men said they wanted to take a high risk, which is 12% more than women.

Risk tolerance and purchasing plans

The survey also revealed that East Germans are more willing to take risks (31%) than their West German counterparts (28%). People with experience buying property also have a greater willingness to take risks (36%) compared to new buyers (24%). Despite the economic uncertainties, the majority of respondents still plan to buy a property. Around 50% would prefer to buy if prices or interest rates fell. 40% of respondents are skeptical and would not buy a home if they were unemployed, while 36% would reconsider buying if they separated.

An important aspect that indicates the cautious approach of future buyers is planning a financial buffer to minimize risks. 68% of respondents plan to set up such a buffer. In addition, 61% would like to take out insurance, such as building or occupational disability insurance. Over half of participants also see the need to seek advice from multiple financial advisors before making a decision.

Optimism despite risks

Overall, it can be seen that 89% of those surveyed assume that they have to take out real estate financing. However, opinions about the future risk situation are divided: 8% believe that the risks when buying real estate will decrease, while 47% expect the risks to remain stable and 44% expect them to increase. 50% are particularly concerned about rising interest rates and declining government subsidies, but 63% of those surveyed expect property values ​​to rise. Especially in the new federal states, 72% of those surveyed believe in an increase in value, while in the old federal states the figure is 68%.

In summary, the survey shows that despite the perceived risks, the majority of Germans are optimistic about the real estate market. 82% see real estate as a safe investment. These findings were not only proven by the numbers, but also by Andrea Burgstaller, construction financing specialist at Dr. Klein commented, pointing out current market developments. Further details about the survey can be found on Dr. Small here and here can be viewed.