Real estate values continue to rise

09.09.2018

The supposed truism of "concrete gold" continues to prove true. The demand for stable investments in real estate is still extremely high. The reasons for this are in particular the low interest conditions for classic financial products, but also the confidence in a large city - and thus pressure on the real estate market. The high price is regulated by supply and demand.

Two reports come up with similar statements. The Federal Ministry of the Interior, Building and Community reports a high increase in rents, according to which in the second quarter of 2018 rents for new rentals rose by 5.3 percent on a federal average, while consumer prices climbed by only 2 percentage points. Even in the comparable periods of the first quarter of 2018 or 2017, inflation was lower than rental price growth.

It is understandable that with these prospects, interested parties are prepared to invest more capital in Real Estate. The average loan amount for initial financing rose by 5.7 percent to 272,478 euros in 2017, as reported by Der Spiegel with reference to a credit intermediary.

As prices are rising noticeably, especially in urban centres, many investors are also moving to neighbouring rural areas. Here as there is valid: At present with hardly a financial investment money is to be earned as surely as with a real estate. With well thought-out financing, unprofitable financial products can be replaced without taking the risk of speculative investments.

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