Housing-demand continues to rise

A justified question with the common sense: Why isn’t there a drop in real estate prices during the Corona crisis? Nevertheless, it would be obvious that the uncertainty around a safe job leads to the restraint with a real estate investment. The buyer does not know whether he/she is able to pay credit tomorrow, the salesman expects possibly dropping prices.  None of all this has happened so far. On the contrary, despite the Corona crisis, houses and apartments owners are generally happy about the increasing value. On a national average, the price for a single-family home equipped rather in the middle range is now well over 400,000 euros. Of course, the differences are enormous because there is only a few marketable offers in the big cities. This is no difference in the extremely expensive Munich, Stuttgart or Frankfurt. In these big cities, there is a tendency to buy smaller condominiums, because a square meter price of up to 12,000 euros for a new apartment forces efficiency in living.  Why is the demand for housing still increasing in Germany when the population is rather declining? A study (2019) of the University of Freiburg by Prof. Bernd Raffelhüschen and Roman Witkowski commissioned by the Schwäbisch Hall Foundation shows that the number of both education and pensioner households is increasing. After leaving school, young people leave their parents' homes for study or training and often move to a so-called " Schwarmstadt " with at least one university. Starting a career also usually leads to the establishment of a small household of their own. Additionally, more and more people live alone at their retirement age for longer than before - and this trend is continuing. Therefore, both population groups are contributing to the fact that households are becoming smaller but larger at the same time.  Conclusion: This stability in times of crisis has of course not stopped the Chinese real estate investors. The above-mentioned points continue to speak for thoroughly worthwhile investments in German housing. Germany is and remains one of the most attractive markets in the real estate sector, especially for non-EU citizens. In China, possessing your own real estate is considered a very low-risk investment method for the future. Therefore, it has an enormously high value in society. And what supports this idea of security more than a stable price development despite the Corona crisis?

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