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Lower Saxony real estate market: loss of value in unrenovated houses stopped?
Price loss stopped: Find out why the value of unrenovated houses is rising again and why experts recommend selling them. Current developments and recommendations in the article!
Lower Saxony real estate market: loss of value in unrenovated houses stopped?
The loss of value of unrenovated houses was stopped after many families, including a reader from Lower Saxony, were confronted with drastic price drops. As a result of sudden increases in interest rates and construction costs, the prices of older properties fell by up to 50 percent in some cases. A dispute over Economics Minister Robert Habeck's heating law and the discussion about a possible obligation to renovate in the EU also contributed to market uncertainty. The political decisions and the costs of energy-saving adjustments influenced the value of old buildings.
Expert Sören Gröbel from Jones Lang LaSalle explained that unrenovated houses had lost a lot of value due to rising construction and capital costs. Legal requirements to reduce CO2 emissions placed additional pressure on older buildings. These factors meant that unrenovated properties in rural areas were offered significantly less than energy-efficient properties.
Despite the price stabilization on the real estate market, the prices for older houses in need of renovation have not yet risen. Energy-efficient new buildings have already shown a slight price recovery in contrast to old houses. However, the loss in value of unrenovated buildings has leveled off for the time being due to stable construction and capital costs. EU guidelines have been relaxed and government support programs have been reactivated to stimulate demand.
Experts recommend not speculating on a future increase in value of unrenovated houses, as this is unlikely and entails high maintenance costs. For families willing to buy, the wait may be worth it, as Federal Building Minister Klara Geywitz has announced a new funding program for the purchase of existing properties. Called “Young Buys Old,” the program is scheduled to start this summer and will be financed with 350 million euros to support the purchase of older properties.