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.
Long-time experienced real estate agents wanted for existing customer support!
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.
Do you have any questions or would like to test the real estate franchise?
We look forward to hearing from you!
Stay up to date
Our press releases
Agency law from December 2020 What do real estate agents have to pay attention to from 23.12.2020? For information for our brokers and E1 licensees: Shortly before Christmas, there was a change in the brokercommission commission: the new law on brokerage commission from 23 December 2020 was already adopted by the German Bundestag in June
E1 Holding expands with 3 further Locations 2 x Berlin and 1x Cologne E1 Holding expands with three other locations Despite Corona, the real estate market is booming, and E1 Holding continues to grow successfully. In Germany, three new locations are now added to the existing 43 locations. Two of them are located in Berlin,
Topic End-of-year business in real estate End-of-year business real estate End-of-year business real estate – High Noon for real estate agents, investors and property owners It is well known that, in terms of average annual turnover, most transactions take place on the real estate market around the turn of the year. This applies to both
Real estate bubble Germany Threatens a Massive Crash? Property prices in Germany have increased significantly in recent years. After the global housing crisis just over a decade ago, fears are once again being raised that there could be a housing bubble in Germany. Experts warn that in many regions of our country, house and condominium
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
Find real estate agents A small detached house Buy or sell a small detached house or condominium – the easiest and safest way to do this is through the mediation of a local real estate agent. You can find the best real estate agent if you make a thorough comparison in advance. Check (,) the
Successful even in times of crisis with real estate The Corona crisis has The Corona crisis has long since reached the real estate market. This raises the interesting question of whether a real estate agent or a real estate investor is actually one of the winners or the losers of this crisis. Surely one or
Investors are looking for real estate like never before! It’s not a new insight from the Corona Crisis that investors flee in times of crisis in tangible assets such as real estate. This is no different during the Corona crisis. However, as a real estate owner, real estate investor, or real estate agent, you should
Will the German Property Market Sink or Swim during the COVID-19 Pandemic? The COVID-19 crisis has come as a shock to global economies. In Germany, the pandemic has had a devastating impact on the economy, and no sector is left untouched. Even real estate, which is usually safe from market fluctuations, is experiencing instability due