Housing shortage in major cities: rents are rising, buyers' market is reviving - what financial experts need to know

Housing shortage in major cities: rents are rising, buyers' market is reviving - what financial experts need to know

According to a report by www.faz.net, there is a revival in the buyer's market on the German real estate market, while rents continue to rise. There is a severe housing shortage, particularly in large cities, which is leading to record rents. Although demand for rental apartments fell by 2 percent in the final quarter, it remains at a high level, especially in the eight largest cities. The national average asking rents for existing apartments increased by 1.6 percent in the fourth quarter compared to the previous quarter and by 5.8 percent compared to the previous year.

This increase in rents and the high demand for rental apartments in large cities show the ongoing housing shortage and the challenges on the German real estate market. Rising rents could lead to more people considering buying property as a long-term investment. In addition, the increasing demand for apartments in the areas surrounding large cities shows that the housing shortage is also spreading to the surrounding regions.

The pick-up in the buyer's market could lead to increased construction activity as developers and investors respond to increased demand. This could lead to a relaxation in the real estate market in the long term if more housing is created to meet the high demand. Nevertheless, it is important to continue to monitor and analyze the effects of these developments on the real estate market in order to be able to make well-founded forecasts for the future.