Olivier Peters, from Sotheby’s International Realty in Frankfurt and Wiesbaden: “We are finding at all our locations that there is less demand for properties in need of renovation due to the supply bottlenecks in the construction industry. That’s why the prices for existing properties that do not require renovation are also rising.” Tobias Schulze from Sotheby’s International Realty in North Rhine-Westphalia adds: “In addition, the construction costs have risen due to the shortage of materials, but also due to higher KfW standards. These are further reasons why investments are more likely to be made in new construction projects or well-maintained existing properties.”
According to the partner of Sotheby’s International Realty, demand in this premium and luxury area is extremely high with supply remaining scarce and driven by the desire to expand, which is not only due to the increased home office caused by the pandemic.
“The city is also coming back,” say the Sotheby’s International Realty partners. After increased demand for real estate in the country was recorded last year due to the first Corona wave, property in the metropolises is now increasingly in demand again.
“In addition, the demand in the suburbs has increased a lot,” says Alexander Stehle from Sotheby’s International Realty in Hamburg. “While there was a noticeable exodus from the city in the first wave of Corona, city, country and metropolitan regions are now equally high on investors’ wish lists,” confirms the Munich partner of Sotheby’s International Realty, Michael Reiss.
Penthouses with roof terraces in top locations are popular again, especially among the group of over 70-year-olds who are selling their property in the country.
In general, there is a lack of offers for villas on the market. In addition, the volume of individual transactions has increased. “In North Rhine-Westphalia this year, the average price for a single property was 2.5 to 3 million euros,” explains Schulze. “Prices continue to rise well above the rate of inflation, and capital is still available on the market,” say Peter Schürrer and Dr. Andreas Pichotta from Sotheby’s International Realty in Baden-Württemberg and Berlin.
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