
Declining demand for real estate – how much is mine still worth?
First of all, it should be noted that the current development on the German real estate M&A markets is uneven. It is difficult to make an accurate forecast of future developments. This is because there are some conflicting factors influencing the markets.
Rental apartments versus home ownership
Pressure on the rental market remains high and, according to experts, could increase significantly due to the decline in demand for real estate. At the same time, there is still demand for people to own their own homes, not least because of the pressure on the rental market. Real estate also remains a sought-after investment due to a lack of alternative investment options.
And yet, according to analysts at Swiss bank UBS, real estate in Munich and Frankfurt am Main is set to become 10 to 15 percent cheaper soon, writes Handelsblatt. In other metropolitan areas, however, prices are continuing to rise, albeit at a slightly slower pace.
Don't rely solely on online property valuations
You should not rely solely on online property valuations. This is because there are many unreliable calculators. Often, the calculators only give a price range within which your property falls. So, putting the right asking price on the market based on this is a matter of luck. And online valuations do not take into account the special features and condition of your property.
Have it valued by a professional
Only real estate professionals with experience and market knowledge can therefore determine a realistic property value. A local quality real estate agent will therefore only value a property after an on-site visit and inspection of the relevant documents. This is because every property is unique. If, for example, a right of residence is entered in the land register, this reduces the value.
Tested guidelines
The Real Estate Valuation Ordinance (ImmoWertV) specifies how a real estate valuation is to be carried out properly. This specifies when the comparative value, asset value, or income value method should be used. As the calculations are also complex, this should be left to a professional unless you want to familiarize yourself with the calculation formulas in depth.
Are you unsure how much your property is currently worth or how its value will develop in the future? Contact us! We will be happy to advise you.
Notes
For reasons of readability, the generic masculine form is used in this text. Female and other gender identities are expressly included insofar as this is necessary for the statement.
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific case.
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