Interest rates have reached their peak: analysis of increasing real estate profitability

Interest rates have reached their peak: analysis of increasing real estate profitability

According to a report by amp.focus.de, there are three reasons why real estate could become more expensive again, but there is also a reason not to. After carefully analyzing these reasons and taking into account other current trends in the real estate market, there are clear signs of rising prices.

The first reason is that interest rates are probably past their peak. The European Central Bank has currently not announced any further key interest rate increases and capital market interest rates have fallen. This means that financing real estate could become cheaper and demand could increase.

In addition, construction freezes and bankruptcies limit the supply of real estate, which could shift the balance of supply and demand and lead to rising rents and prices.

The mood in the German real estate market is also improving, which could have a positive impact on purchase demand. Real estate portals and price comparison providers are already reporting a new upswing on the market. This could indicate that property prices will rise again.

However, there is also a reason against rising prices: A draft law by Finance Minister Lindner could slow the recovery of the real estate market as it would introduce new hurdles for the purchase and construction of residential properties. This could at least make it more difficult for banks to grant loans.

Overall, current developments and trends in the real estate market indicate that real estate prices will rise again. However, this also depends on political decisions that can influence the further development of the real estate market.