DeutschProperty market: The right time to buy
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If you want to invest money in property, you need a broad horizon to assess at what stage of the property market an investment is worthwhile. The question is: when is the right time to buy a house or flat for your own use or as an investment?
The age of prospective buyers also plays a role here, as the property should be paid off by the time they retire. In 2023, buyers in Germany were 38 years old on average when they decided to buy their own property.
A new forecast by empirica covers the period from 2023 to 2045. The longer forecast horizon is significant because a further minor demographic upheaval will take place from the mid-2030s. The forecast is based on the empirica regional forecasts for household numbers, demand for new construction and vacancy rates.
How many flats are missing? 800,000, as the associations say, or only 170,000, as the empirica research institute reports? That depends on the forecast horizon and further developments. The following also applies to the property market: scarcity equals high prices. But affordability also plays an important role at present. A current ImmoScout24 analysis of the 40 largest cities in Germany shows how much living space is available for a monthly basic rent of EUR 1,000 to EUR 1,200 compared to a condominium with the same monthly financing amount.
The demand for rental flats is currently 21 times higher than that for owner-occupied flats. In half of the cities, the difference in living space between owner-occupied and rented flats is small. In nine out of 40 cities, prospective buyers can find more living space for their budget to buy than to rent. For a monthly budget of 1,000 to 1,200 euros, an average of 90 square metres of rented living space and 83 square metres of owner-occupied living space is available in Germany's 40 largest cities.
Conclusion: The chances of acquiring residential property have increased significantly compared to renting. The favour of the hour for buying property is approaching.
(Photo: © Dimitris Vetsikas, Pixabay)