Current market forecasts: rising real estate prices and increased financing demand in Munich

Current market forecasts: rising real estate prices and increased financing demand in Munich

Expert webinar of Mr. Lodge GmbH with Interhyp director Mirjam Mohr illuminates interest development and customer preferences in the real estate sector

On July 18, 2024, the webinar organized by Munich Mr. Lodge GmbH took place "Current financing situation on the real estate market". The event attracted a large number of participants and received numerous well -founded questions from the audience, which illustrated the high relevance of the topic. The webinar offered interesting insights into the current trends as well as an outlook on future developments in the field of interest development and their effects on property prices.

The focus of the webinar was the lecture by Mirjam Mohr, board member of the Interhyp Group and renowned expert in financial markets. Her informative impulse lecture was entitled "Between optimism and patience: half-time balance in the construction financing year 2024". Mohr emphasized the clear signs of relaxation on the real estate market and attributed this to the stabilization of construction interest. Compared to 2023, the construction interest for 10-year loans are currently significantly lower and were around 3.7 percent. This interest rate reduction has led to an increased affordability of real estate and has increased the demand significantly since the beginning of the year. Although the recovery of the real estate market is slowly progressing, he is on a positive course, according to Mohr.

According to the Interhyp-Immobilien index, the prices for residential properties have increased by 2 percent in recent months. The prices also increased in metropolises such as Munich, Stuttgart, Frankfurt and Berlin. After the abnormal low interest rate phase and the sudden increase to over 4 percent, the financing structures normalize again. The affordability of real estate has also improved, since the percentage of the loan rate in the budget net income has decreased again after a strong increase in 2022 and 2023. The desire for your own home still drives the demand for real estate.

A special opportunity currently offer existing properties with low energy efficiency. The prices for real estate from energy classes B to F have dropped by 17 percent since the beginning of 2022. Unhanged objects of class G and H even recorded a price decline of 22 percent. In contrast, the prices for energy -efficient properties of classes A+ and A remain largely stable. This underlines the increasing importance of energy efficiency in the real estate market, although the prices for less energy -efficient properties have increased again in recent months.

In the second part of the webinar, Norbert Baucheln, Managing Director of Mr. Lodge, and Marcel Bollßen, Manager Sales specialization Copold facility at Interhyp Group, the requirements and wishes of real estate buyers. They emphasized that the attractiveness of the investment in rented properties due to the increased rents had increased significantly again. Banks place higher demands on the creditworthiness of customers, the use of equity, the location of the real estate and their condition. Nevertheless, there are good opportunities to make financing again profitable, flexible and safe for real estate investors. Close cooperation with an experienced financing consultant who specializes in investors can help find the best offer.

The conclusion of the webinar was: there is currently an attractive purchase window for real estate. The interest rate level is stable, the prices are still at a low level and there is a sufficient range of real estate. Price negotiations are still possible, especially in real estate with poor energy efficiency. Interested parties should take this opportunity, Norbert Baucheln, managing director of Mr. Lodge.

Mr. Lodge GmbH has more than 30 years of experience in the real estate sector and offers advice and support in the areas of renting and selling residential properties. The company is the leading provider of furnished temporary living in the Munich area as well as at the Tegernsee and in the Oberland. The Interhyp Group is one of the leading addresses for private construction finance in Germany and has successfully placed a financing volume of 17.2 billion euros in over 500 financing partners in 2023.