The Housing Market
Good earnings poten- tial, also for the sale of individual apartments
Karina Schunker MRICS
Managing Director EHL Wohnen GmbH
The substantial decline in new construction and renewed buyer interest create good earnings opportunities for investment property owners and a further attractive exit scenario as an alternative to a complete sale.
Developments on the housing market currently offer particularly attractive opportunities, also for investment prop- erties. Investor interest in the purchase of entire buildings is slowly recovering, but the demand for apartments is again approaching earlier record levels. In the most important submarkets, the prices for the sale of individual units have remained stable in recent years. Good locations with an especially short supply have also seen above-average value growth.
latest in 2026, where demand substantially exceeds the supply of new space.
when the building substance is very good. If open spaces or perhaps an underground garage are also available, the prices for these older apartments can be even higher than newly built apartments at comparable locations because the typical advantages of Wilhelminian era buildings – high ceilings, elegant interior fittings, historical facades – become increasingly important factors in pricing. In addition to renting, the separation of apartments for the subsequent sale of individual units is an interesting alternative exit strategy für investment property own- ers. New rentals should, however, include and establish the necessary requirements through limited lease terms. The conditions for apartment sales will be very favourable in the coming years due to the expected supply shortage and, above all in popular residential locations, also represent a profitable business model.
The scarce supply in the new construction segment has had a particularly strong impact on the investment property market. This is a consequence of the sharp
In the most important submarkets, the prices for the sale of individual units have remained stable in recent years.“
The upward trend in ownership underscores the general decline in the supply of apartments from the many older buildings which were refurbished and renovated prior to 2022. The decline in building permits and the limited number of refurbishment projects have been reflected in a drastic reduction in the number of completions, while lower interest rates have made apartment purchases more attractive for owner-occupiers. These developments will lead to a situation, at the
drop in completions at central locations where most of the buildings from the late Wilhelminian period are located. Potential buyers looking for properties within the beltway or in good residential areas in the western districts will currently find only a single new construction project. As a result, the previous substantial price dif- ference between first-time occupancy and refurbished older apartments has become much smaller – and trends towards zero
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Investment Property Report
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