New construction continues to drive property prices - insights from a financial expert

New construction continues to drive property prices - insights from a financial expert

According to a report by www.esslinger-zeitung.de, there are currently various trends on the real estate market in the Esslingen district. While prices are generally falling, the opposite is true for new construction. This is mainly due to the high costs caused by inflation, which are depressing demand. Esslingen has seen a significant decline in sales of new apartments so far this year, with fewer than 20 units sold. At the same time, the number of new building permits issued is falling drastically.

The regional development of the real estate market in the Esslingen district is influenced by several factors. Above all, the high demand for living space in the metropolitan area and the increased influx have led to the district's growth by around 30,000 people in the past 20 years, to a total of 541,772 residents (as of June 30, 2023).

These developments have various effects on the real estate market in the Esslingen district. Due to the decline in demand for new buildings, the price dynamics for new properties could slow down. At the same time, general price developments could remain positive due to strong population growth and ongoing demand for housing. It is to be expected that investors will increasingly rely on alternative real estate options such as existing properties or renovation projects in order to counteract the declining demand for new buildings. These developments reflect the adaptability of the real estate market and could lead to a diversified range of offerings in the region in the long term.