Good perspectives for metropolitan areas
There are many indicators suggesting that the market’s positive developments will continue in the coming years: the economic and demographic frameworks in major German cities and urban areas are pointing towards a promising direction. Market prices in major cities will continue to rise as demand remains high and even increases, thanks to migration from other countries and rural areas as well as a trend towards smaller households. At the same time, supplies are beginning to run short, as little new real estate is being constructed. Although previous years saw a notable increase in construction permits, there still isn’t enough new real estate to meet the demand for housing. Finally, one needs to take into consideration that German real estate is still relatively cheap – considering the country’s economic standing, especially compared to market prices in many British and French cities.
Low interest rates make real estate is an attractive option
Interest rates are currently at a historic low, a fact real estate purchasers clearly benefit from. Financing a purchase is as cheap as never before. The actual interest currently amounts to around three percent, if a fixed interest rate of ten years is agreed upon. Ten years ago, the interest rate was twice as high. How long interest rates will remain this low is another question, nobody can really answer. People considering purchasing property shouldn’t hesitate: now is a good time to buy real estate, whether for personal use or capital investment. If the purchased real estate is bought for personal use, purchasers can also look forward to independence from rental increases. In the latter case, new property owners benefit from a safe and durable investment.