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Living in Germany remains expensive - financial experts warn of rising rents despite a slight drop in interest rates for building loans
Housing in Germany remains expensive, and the recent slight decline in interest rates for building loans does not change this situation in the opinion of some experts. “Rents continue to rise, purchase prices are still falling, but they are not doing so to the same extent as rental apartments are becoming more expensive,” says Reiner Braun, CEO of the Berlin consulting and research institute Empirica. From his point of view, there can be no question of lasting relaxation. The dream days when you only had to pay one percent interest on a building loan with a ten-year fixed interest rate will no longer come back, says Braun. According to a report from rp-online.de, Reiner Braun's statements, ...
Living in Germany remains expensive - financial experts warn of rising rents despite a slight drop in interest rates for building loans
Housing in Germany remains expensive, and the recent slight decline in interest rates for building loans does not change this situation in the opinion of some experts. “Rents continue to rise, purchase prices are still falling, but they are not doing so to the same extent as rental apartments are becoming more expensive,” says Reiner Braun, CEO of the Berlin consulting and research institute Empirica. From his point of view, there can be no question of lasting relaxation. The dream days when you only had to pay one percent interest on a building loan with a ten-year fixed interest rate will no longer come back, says Braun.
According to a report by rp-online.de,
The statements by Reiner Braun, CEO of the Berlin consulting and research institute Empirica, reflect the current development on the German real estate market. Although the interest rates for building loans have fallen slightly, this has no significant impact on the rising rental prices and the relatively slower decline in purchase prices.
This development means that housing costs remain high and there is no lasting relief in sight. The past “dream times” with extremely low interest rates for construction loans with long fixed interest rates are a thing of the past and are unlikely to return.
The ongoing discrepancy between rental and purchase price developments could lead to increased demand for condominiums as potential buyers try to avoid the increase in rental costs. This, in turn, could affect the housing market in certain regions by reducing demand for rental apartments and increasing condominium prices.
Read the source article at rp-online.de