Financial expert explains: Increased interest rates and far-reaching economic reasons are leading to declining demand for real estate in Hersfeld-Rotenburg.

Financial expert explains: Increased interest rates and far-reaching economic reasons are leading to declining demand for real estate in Hersfeld-Rotenburg.

According to a report by www.hna.de, demand for real estate and building sites in the Hersfeld-Rotenburg district fell last year. Sparkasse Bad Hersfeld-Rotenburg and VR-Immobilien und Service GmbH confirm that this is primarily due to increased interest rates, difficult cost calculations, a lack of funding and demanding funding requirements. Rising construction costs and political, economic or global events also influence the real estate market.

Demand for real estate especially in the cities of Bad Hersfeld and Bebra

According to VR-Immobilien und Service, the average price of a property last year was 200,000 euros, with the price depending on various factors. The interest rate for financing with ten-year interest rate security is currently around four percent, which is also influenced by various factors such as creditworthiness and building structure. There is particular demand for real estate in the cities of Bad Hersfeld and Bebra, with apartments being more popular than houses.

As an expert in the real estate market, I can confirm that the reasons mentioned can lead to a decrease in demand. Rising interest rates and difficult cost calculations cause uncertainty among potential buyers and builders. This may lead to a slowdown in the real estate market and a decline in transactions. Political, economic and global events can also have a significant impact on demand and supply.

It is important that the industry and government take action to address these challenges and restore consumer confidence in the property market. This could include, for example, providing subsidies, reducing construction costs and introducing incentives for property purchase or construction. Overall, these developments should be carefully monitored in order to be able to react appropriately to changes.