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High inflation, the lack of building materials, and now the interest rates for building loans are rising rapidly: buying a property is becoming more and more expensive.
In January, homebuyers could calculate with a one before the decimal point, but more than three percent are now due for a loan with a ten-year commitment.
For many Germans, this means that they are giving up their dream of owning their own home: 34 percent of those who would like to own their own property do not currently dare to buy it because of the high prices.
This is the result of a study by the Rheingold Institute on behalf of the credit broker Interhyp, 2,200 Germans were asked about their housing situation and any real estate plans.
The mood has clouded over: Only 68 percent of Germans want a house or a condominium - four percentage points less than last year.
And for those who have their eye on a property, time is running out with rising interest rates: "In our advice, we see that some customers are currently having to recalculate," says Mirjam Mohr, Interhyp board member for private customer business.
»Like by making compromises when buying a property.
We also see that one or the other is refraining from making a purchase.
But that's not the rule.«
What it costs in the big city - and what in the surrounding area
The study shows once again that living in the suburbs of the big cities is attractive for many: home office on your own terrace, video conference with your feet in the paddling pool.
Only 13 percent of Germans want to live in a big city, 57 percent prefer the village or the surrounding area, 30 percent small or medium-sized towns.
And of course not only the garden or the more spacious property plays a role, but also the money: The study contains sample calculations.
While the average property price (including ancillary costs, first quarter of 2022) is EUR 585,000 in Berlin according to data from Interhyp, it is significantly lower in the surrounding area at EUR 526,000.
The effect is even greater in the Frankfurt bacon belt: 747,000 euros to 623,000 euros.
And in Hamburg: 750,000 euros for real estate in a city location, 558,000 euros for houses outside.
"The high cost of housing is the main reason for people fleeing the city," says Mohr.
The regrets of the city fleeing
But how satisfied are the out-to-the-country movers?
According to the study, the result is rather mixed: 47 percent say they are happy, but 42 percent are not quite so enthusiastic and could well imagine moving back.
And at least 6 percent regret the decision and would like to move immediately.
The most common reasons: less contact with friends and relatives, 29 percent miss the cinema and theater, 19 percent would like to have more choice when shopping.
And: The lack of connection to the job is a big problem – 45 percent complain about that.
Operation Dream House
What do the Germans want?
Not much has changed there: A single-family house (64 percent) with 3G – garden, garage, guest toilet, as the experts write.
24 percent would like a country house or farmhouse, and 21 percent would like a bungalow.
What does the German mean by space?
100 to 150 square meters.
Save energy?
Yes!
but
The energy price shock is also having an effect in the study: Energy-saving insulation is important to 62 percent of those surveyed, which is 6 percent more than last year.
Many would also like to have a solar system – but the reality is much less sustainable: the property is only insulated in 15 percent of cases, and a solar system is only found on the roof in eleven percent.
And the follow-up financing?
The interest rate spiral also has consequences for those property owners who need follow-up financing.
For example, after the first ten years, when the legal right to terminate the real estate loan applies.
Long before the deadline, bank customers can secure a so-called forward loan on more favorable terms - and thus, for example, lower their monthly rate.
But that is becoming increasingly difficult: "The proportion of follow-up financing in all financing deals has risen sharply: from 25 percent in the previous year to 33 percent in the first quarter of 2022," says Interhyp board member Mohr.
Forward loans with long lead times (three years and more) are particularly in demand.
The new figures show that the euphoria of buyers is muted because of the interest rates, because of the high prices - and also because of the small supply.
In the study, it sounds like this: Last year, many people who wanted real estate talked about last-minute panic, but now many have the impression: »The train has left.«