Current challenges on the real estate market

The impact on the market

Falling real estate prices

The real estate market has been recording a remarkable decline in prices for some time, but this has also brought challenges. People's willingness to invest is declining, as uncertainties in the economy and the impact of theCOVID 19 pandemic are leading to a lower propensity to buy. This development poses a problem for both sellers and the market as a whole.

Declining investments

People's declining willingness to invest is leading to a drop in demand for real estate. Potential buyers are reluctant to invest in the current market because they are concerned about possible declines in value. This may lead to an oversupply of real estate and increase competition among sellers.

Financial burden on the seller

The fall in prices puts pressure on sellers to offer their properties at lower prices in order to attract buyers. This can lead to financial losses for sellers and affect their economic situation. Especially for those who urgently need to sell, this can lead to significant financial burdens.

Market instability

The continuing price declines may lead to general market instability. A downward spiral may develop in which further price reductions and uncertainties further destabilize the market. This may also have an impact on the economy as a whole, as the real estate market is closely linked to other sectors.

Rising rents put households under pressure

Rising rents are worrying experts and point to hard times ahead for tenants. The Tenants' Association warns of further significant rent increases and a growing number of overstretched households. It is expected that in the next few years everything legal will be exploited to let rents rise much more sharply than wages.

Solution approaches for rent reduction

An increase in subsidies and greater investment by private financiers in social housing is recommended. Increasing the supply of housing, for example by adding more floors, could help to curb rising rents.

Future prospects

It remains to be seen how the situation will develop and what measures will be taken to address rising rents and reduce the pressure on households.

The future of the real estate market depends on the actions taken and the cooperation of all stakeholders. Only through joint efforts including governments, developers and real estate experts, can the impact on the market be minimized and a balance between supply and demand be created.

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