High rents, stagnating purchase prices, and stable interest rates are currently the prevailing conditions on the real estate market. For prospective buyers and sellers of real estate, this means that the market has become more predictable—and new opportunities are emerging.
In many places, rents have risen significantly more than purchase prices. While purchase prices are still below the highs of 2022, rents are rising steadily. "This significantly improves the purchase price-rent ratio for potential buyers," explains Heike Nicodemus, real estate expert at Stiftung Warentest Finanzen.
This year's real estate price comparison by Stiftung Warentest Finanzen once again shows large regional differences. You can find out how real estate prices have developed in the individual regions in the August issue of the magazine or in the paid section at www.test.de/immobilienpreise.
Mortgage interest rates have a significant influence on the development of the real estate market. After eight cuts in the key interest rate by the European Central Bank (ECB) since last summer, things have now calmed down for the time being. The ECB's main goal is stable prices. The ECB has brought the rapid inflation of recent years under control, inflation is within the target range, mortgage interest rates are stable, and the real estate market is experiencing a slight upturn.
It is not worth waiting. This applies equally to prospective buyers and sellers of real estate. Those who took out a ten-year mortgage in recent months did so at an average interest rate of between 3.25 and 3.5 percent. This means that construction interest rates remained within the reliable range predicted by experts. This stable environment offers prospective buyers a good basis for planning in peace. There is no need to make hasty decisions at the moment.
However, prospective buyers should not underestimate price developments on the real estate market. Demand is at a high level overall. According to experts, it will not be worthwhile to wait for real estate prices or construction interest rates to fall.
Photo: © Gerd Altmann, Pixabay
