Ownership Rate Will Rise

Germany has the second lowest house ownership rate in Europe. This is likely to change due to the current socio-economic development.

Compared to other European countries, Germany has a very low ownership ratio, with a total rate of 45.5 percent and an even lower rate of 12 percent to 25 percent in large cities, depending on the exact location. In general, rural areas show a higher ratio than urban regions, which is basically because of the lower prices. Furthermore, rural locations are more of a long-term or definitive stay, whereas people who live in the city are more likely to move several times.

One reason for the low property ownership rate in Germany are, among other things, the high construction costs. A recent study, initiated by the German Postbank, suggests that the ownership ratio will continue to rise. It reveals that 40 percent of the 18- to 34-year-olds, wish to purchase their own real estate as real estate is the safest investment and a popular bonus for the governmental pension. Given the current interest rate situation for average earners, the survey also showed that there are no locations in Germany, where real estate investments would not pay off over time. One reason is that current interest rates are still lower than ever before. Less than 10 years ago, interest rates for building activities were two to three times higher as they are today. Future building owners are therefore recommended to take advantage of the very good conditions and implement their building projects now.

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