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Когда ловушки цены на недвижимость

When traps real estate prices

When do real estate prices fall?

The real estate market follows different rules

The real estate market follows different rules from the markets of other products. Who simply refers to the law of supply and demand in response to the question “When do real estate prices fall?” definitely falls short. For example, the real estate market is subject to far-reaching government regulation, particularly residential real estate. At present, for example, discussions are being held within the Federal Government to further restrict the conversion of rental apartments into condominiums. The valuation of such objects would certainly be influenced by this. This is just one example of political influenceons on the evolution of real estate prices. It is no exaggeration to note that there is almost constant discussion of any legislative changes affecting the real estate market.

When do real estate prices for rental properties fall?

For many regions, the question “When will real estate prices fall?” has already been answered. Rural regions in many federal states have been suffering from a decline in the population for years, coupled with sometimes considerable vacancies for rental housing. Prices there have already fallen. But when do real estate prices fall in the larger cities? In its latest report, the Bundesbank found that the market was overheating with excessive prices in only a few A-metropolises. In these few cities, where the first signs of a possible housing bubble are showing, the market itself will provide moderate price corrections. The upper limit is largely determined by the prices at which banks finance objects.

When do real estate prices for residential properties fall in the area?

In a few A-cities and the less attractive rural regions, the development of real estate prices is therefore relatively easy to understand. The situation in the area is more difficult. This refers to the economically successful urban regions that people move to primarily because jobs are located there. In the short term, there are no reasons for significantly falling prices. Demand is starting to fall in the medium and long term as policymakers seek to increase the attractiveness of rural areas. As more companies rely on the home office in the long term and fast Internet connections are available across the country, demand for housing in these cities will fall. This development has been forecast for years, but so far very little has happened. However, the Corona crisis may prove to be a catalyst that is significantly accelerating this process. So when will real estate prices fall in cities such as Wolfsburg, Ludwigshafen or Duisburg? They fall when the close link between place of work and place of residence is dissolved.

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When do real estate prices for commercial properties fall?

It seems certain that not all companies will survive the Corona crisis and therefore a short-term slump in demand from tenants of commercial properties is imminent. For Germany and the EU as a whole, almost all experts assume that a return of the economy to pre-crisis levels is not expected until 2022 at the earliest. However, it is unclear whether this temporary slump will have a direct impact on the prices of investment properties. In times of crisis, the attractiveness of other investments, such as equities, also suffers. Investors tend to prefer tangible assets in times of crisis. So when do real estate prices for commercial properties fall? A general answer is not possible. The two opposing trends “Escape to Property” and “Declining Demand” do not allow general forecasts. Decisions on investments in commercial properties can therefore only be made for the foreseeable future on the basis of the specific individual case, based on a detailed analysis of the object. This makes it all the more important to rely on a partner like E1, who only proposes detailed objects to you.

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