Interest in real estate housing rises again
The reversal of real estate prices has led to a slight revival on the German housing and residential market, according to a survey by mortgage broker Interhyp. In the new edition of its annual "Affordability Study" by the Munich company, the proportion of those who consider their own residential real estate financially viable has increased. Interhyp reported this.
A total of 1,001 people between the ages of 25 and 65 who are interested in buying real estate, have been looking for property in the past two years, or have purchased property in the past five years were surveyed in May. The results are representative of this group, according to Interhyp. According to the survey, 59 percent of respondents consider a residential property in their respective region to be "medium" or "easily affordable" this year, nine percentage points more than last year.
The simultaneous increase in interest rates and construction costs led to a decline in the private real estate market in 2022 and 2023. The main reason, according to many experts, was that many potential buyers could no longer afford their own property. However, since the beginning of last year, real estate prices have fallen significantly in many places.
The survey results correspond to reports from the financial industry about renewed interest in real estate loans. The Bavarian Sparkassen recently reported that this interest is mainly limited to the purchase of used houses and apartments, with new construction still lagging behind.
The survey conducted by Interhyp, which focuses on residential real estate, showed that interest in buying property has remained high despite the rise in interest rates. Interestingly, the survey reported an increase of 9 percentage points in the number of respondents who consider purchasing a residential property in their region to be financially viable, particularly in the used residential real estate market.
