The continuing high level of interest in private homes is due not only to the low market interest rates, but also to the rental price trend. For years, rents have risen almost uninterruptedly in some regions of Germany, and there have long been several cities where living is really expensive. This trend continues and at the same time expands into other cities.
A few days ago, “Spiegel Online” published an article on this subject, which provides prepared data. The peculiarity here: Not only the prices for new lettings were considered, but also the rental prices of existing properties. It turns out that rents have risen sharply, not only in the case of new lettings, but also in inventory. In other words, many tenants recently had to accept significant rent increases.
Rents hit the strongest where the economy is booming. Some cities attract many working people, which does not go unnoticed by rental prices. The landlords respond to the high demand by increasing the rents. Incidentally, Munich and Stuttgart are the front runners in Germany, where more than 10 euros are due on average for square meters of living space. At first this may not sound so high, but it is about average values - these are very high compared to other German cities.
Rising rents in the north and in the east
A trend that has been observed for the first time in recent years has intensified: rents are not only rising in the south of the republic, but also in parts of the north and east, depending on the region, significant increases in rents have been observed. The reason is above all that new business locations have emerged there, which are currently growing rapidly. Although much new housing is being created in such cities, demand is growing faster.
For those who are currently renting in such a region, this is not good news. Especially since a turnaround is not in sight, many experts continue in the coming years from rising rents. Similarly, can not be spoken of a real estate bubble, because rental prices and purchase prices are two pairs of boots. Especially in the north and in the east, rents have only started to increase for a relatively short time, which is why rental experts still see a lot of room for improvement, meaning that they could become significantly more expensive in the next few years.
Home as a way out of the rental price trap
If you want to escape this development, you have only two options: either to move into a region with low rents or alternatively to buy your own home. Most home ownership is likely to be the interesting solution, especially because the framework conditions are quite attractive.
Although real estate prices may have picked up significantly in some regions of Germany, overheating is far from over everywhere. At the same time, the construction field is very attractive, as we mentioned earlier, we can currently look at very low mortgage rates. Mortgage lending is cheaper than ever, even larger loan amounts entail a manageable interest burden.
Check your own options
If you also want to know more about whether and on what terms financing is possible, we are happy to help. Our independent financing specialists check which banks recommend real estate financing in your specific case. Likewise, it is also determined how high the maximum loan amount is measured and which attract lenders the best conditions.
Currently, we can evaluate conditions of more than 400 banks, building societies and insurers, which allows our customers access to very low-cost loans. Of course, the advice given by our financing specialists is free of charge and without obligation, meaning you can decide yourself at any time whether and where you are financing.