Which properties should you currently sell and which should you keep? Here are the best strategies for homeowners, landlords and investors.

Which properties should you currently sell and which should you keep? Here are the best strategies for homeowners, landlords and investors.

According to a report from www.focus.de, prices for apartments are currently falling significantly in Germany. The declines are particularly noticeable in large cities such as Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart and Düsseldorf. Despite this, overall property prices are still high. As an expert in the real estate market, I would like to analyze the various effects of this price drop and explain what it means for owners and investors.

We first consider the impact on homeowners. For people who use their property as their own home and do not want to sell, the current price declines do not matter. The sale would mean losses because the financing costs due to interest rise faster than the purchase prices fall. Therefore, the same applies here: don’t sell.

Next, we look at the impact on landlords. They are also largely protected from the effects of the price decline, as rents continue to rise significantly while purchase prices fall. Rents remain stable, especially in sought-after locations in large cities, which provides landlords with a good source of income.

Finally, we consider the impact on investors who own real estate as an investment property. In some cases, the time may be right to realize profits through sales. Price corrections could lead to losses, particularly for properties in peripheral or rural areas, while sought-after locations remain stable.

Currently, it is expected that property prices could fall further as increased interest rates and inflation hit demand. Analysts say further price drops of up to 20 percent are expected, albeit at a slower pace.

Overall, the current price declines do not necessarily have a negative impact on homeowners and landlords, while investors may have the opportunity to realize profits in certain cases. It remains to be seen how prices will develop in the future, but it is important to monitor current developments and trends in the real estate market.