More and more real estate projects are canceled, fewer and fewer people can afford to own their own home due to rising interest rates.
“The gap between selling prices and investor purchase price expectations is widening significantly,” real estate investor Jakob Moravia told Business Insider.
Business Insider asked four real estate investors if it is worth getting into the real estate market now.
The signs of crisis are multiplying on the German real estate market: more and more real estate projects are canceled, many companies in the sector cancel their forecasts. “Worries about the future have rarely been so great,” says Felix Leiss, an economist at the Ifo Institute. In September, according to the institute’s latest study, 16.7% of construction companies surveyed reported canceled orders, up from 11.6% in August.
The reasons: higher prices for materials and energy and higher interest rates on loans. “For some manufacturers this is no longer feasible. They put projects on hold or take the lanyard out entirely, ”says Leiss.
