What happens when the housing bubble bursts? – Real Estate News Week32

Real estate bubble – The big topic in Spiegel this week. What happens when the real estate bubble bursts? The cycle leading to the real estate bubble is quickly explained: If interest rates rise again soon, theoretically fewer people will be able to afford new financing and loans for new construction or their own home. Therefore, with low interest rates, more and more people will want to invest money in alternative ways. This ensures that other forms of investment become more attractive, so less money is flowing into the market for real estate and in the long term demand will fall, which in turn will lead to falling prices. Especially in the mirror this week is about renewed speculation around another bubble in the real estate market (read more: Emergence of a real estate bubble). All real estate news can be found right here: Real Estate News.

What is a real estate bubble?

What is a real estate bubble? Many who hear the word real estate bubble first wonder what the term is all about. A real estate bubble is a form of a speculative bubble. The term real estate bubble states that real estate is being sold at overpriced prices and is generally overvalued. The higher these prices get, the bigger the real estate bubble gets until it finally bursts after reaching its peak. Once it bursts, prices fall abruptly.

The Spiegel reports this week that economists currently see increased alarm signals in the current speculation on the real estate market. Therefore, economists classify the bubble risk at 92 percent. Further, the mirror sees an overheating in the real estate market: For these cities and counties experts warn of a bubble. It becomes critical under circumstances for real estate owners. As described in the WDR: “Who would have to sell his object, in order to come at money at present, obtains only lower prices, says Voigtländer. The financing model set up together with a bank could then waver. But those who keep their property in the medium or long term do not feel any direct effects.”

Where are property prices rising the most?

The price trend is currently strongest in the south of Germany. Bavaria, Baden-Württemberg but also neighboring states such as Hesse and Rhineland-Palatinate have to contend with rising prices per square meter. What annoys the buyer of houses and condominiums, is for house sellers of course an absolute blessing, because currently top prices can be achieved, as you can see here in the statistical analysis:

You can find more infographics at Statista

Is it still worth investing in real estate?

Admittedly, the current real estate market is in motion and heated up. Real estate prices per square meter have been rising for some time. What is and remains certain is that real estate is still one of the few investment properties that currently still yield sufficiently attractive returns for investors. Tip: Here you can find all current prices of the most important real estate companies. Despite the current and long pending discussion about a real estate bubble, the investment does not seem completely absurd. Learn more here: Real estate as an investment.

Interview: “The real estate bubble will burst”.

Prof.Max Otte in an interview with SWR with the statement: “The real estate bubble will burst”. The topic: “The Great Money Flood – How the Rich Are Getting Richer”.

Tip! New at Lukinski: Sell Hotel

Profit from the current tourism boom and sell your old hotel at a good selling price. More tips? Read here: Selling a hotel.

Real Estate News

IM Real Estate Manager on healthcare real estate

This week at IM Immobilienmanager, among others, articles on “Healthcare real estate: hardly any big deals” and “Eden Tower: €110 million financing in place”. More news can be found here:

Frankfurter Allgemeine on health: How to work in the garden without back pain

This week’s Frankfurter Allgemeine features exciting articles such as “Garden design: June’s flowering treasure chest” and “The right way to rake and mow: Gardening without back pain”. More news from the past days:

  • Garden design: June’s flowering treasure chest
  • Holiday architecture: How to attract guests with special holiday properties
  • Rake and mow properly: How to do gardening without back pain

Real Estate Newspaper on political interventions in the granting of loans

This week Immobilien Zeitung has interesting topics such as “Outlet centers will double turnover in Germany” and “In Münster, especially medium residential areas will become more expensive” in the magazine. The posts and more tips can be found here:

Spiegel on speculation in the real estate market

At Spiegel, this week’s topics are “Overheating in the real estate market: experts warn of a bubble for these cities and counties” and “Real estate: bank offers construction loan without interest in Denmark” . More news from this week:

Handelsblatt on Mexico City: Paradise for apartment renters

In contrast, Handelsblatt reports this week on “Vonovia increases profit by 13 percent thanks to acquisitions and higher rental income” and “Low interest rates aren’t everything: These are the best providers for construction loans” . More headlines of the week:

Star to new concepts: The kit house

Stern’s blog looks at “London: tenant fined €112,000 for renting out his council flat via Airbnb” and “House building: put up this dream kit house yourself” . More news of the week:

Haufe with money laundering in focus and suspicious leases

New from Haufe this week includes “Housing construction: Vorpommern demands concrete help from state and federal government” and “Money laundering: real estate agents must report suspicious rental contracts” . More real estate news for tenants, buyers and sellers:

Manager Magazin on HQ Capital: Gambled away in New York

There are also new headlines this week from Manager Magazin such as “Extreme interest rate development: Danes get long-term loans at zero rates for the first time” as well as “Adenauer vs. Quandt: HQ Capital gambles away in New York” . More headlines:

T-Online on deadlines in house building

This week, T-Online has covered topics such as “Warranty when building a house – no builder should miss this deadline” and “Rent arrears – rent not paid: When may the landlord terminate?” . New topics of the week:

Süddeutsche Zeitung with landlord interview

This week’s Süddeutsche Zeitung blog is about “We are practically fully let” and “Database instead of gut feeling” . Updates and news from the newspaper:

Federal Gazette on land transfer tax reform threatening businesses

This week at Bundesanzeiger among others “Year of construction must be correct” but also “First yes, then no” . New articles, headlines and trends:

  • First yes, then no
  • Year of manufacture must be correct
  • Real estate transfer tax reform may threaten companies: Federal Cabinet approves unsuccessful reform

Berlin.de about Tegel after-use

New articles and posts from Berlin.de this week include “Homeowners must build reserves for maintenance” and “More building applications for apartments due to extensions and conversions” . More headlines of the week:

Investment Stocks: Real Estate Winner of the Week

CR Capital Real Estate

CR Capital Real Estate Aktie Chart

Course Provider: L&S RT

CR Capital Real Estate

CR Capital Real Estate Aktie Chart

Course Provider: L&S RT

AGROB Real Estate Vz

AGROB Immobilien Vz Aktie Chart

Course Provider: L&S RT

DEMIRE Deutsche Mittelstand Real Estate

DEMIRE Deutsche Mittelstand Real Estate Aktie Chart

Eyemaxx Real Estate

Eyemaxx Real Estate Aktie Chart

Course Provider: L&S RT