In short: Yes, even if it's not easy! Because interest rates are unlikely to fall sharply and the housing supply remains tight, well-planned real estate financing is a sensible strategy for households focused on value preservation, inflation protection, and long-term security.
It's no secret that real estate financing is more complicated today than it used to be. Interest rates are higher than they were during the low-interest-rate era, and additional costs and requirements such as renovations, energy efficiency, etc. also add to the bill. Regional differences make market forecasts difficult everywhere.
Despite these hurdles, there are several compelling reasons to consider taking the step of owning your own home or purchasing a high-yield investment property.
Construction interest rates are at a moderately higher level, but are considered relatively stable by market observers in the short term (see: baufi-nord.de). This means that a significant reduction in interest rates is unlikely, while the risk of further increases remains. Therefore, anyone who has a viable financing plan now can protect themselves against unforeseen costs.
The shortage of new construction is also a key factor. In recent years, the number of new constructions has declined significantly, leaving supply tight relative to demand. Many households are seeking homeownership and are financing large portions of the purchase price with debt. The average financing volumes and the high proportion of debt financing indicate that buyers are willing to enter the market despite higher interest rates. This creates demand, which, combined with the fundamental scarcity, is a strong driver for rising prices and supports values and rents in the medium term.
Specialist analysts also predict a cautious recovery in real estate prices for 2025 and the following years – not necessarily a boom, but rather a stabilization and slight increases, especially in sought-after locations. Those who calculate now and plan for the long term can thus realize the increase in value.
In practical terms, this means calculating carefully, having a solid equity base if possible, considering a longer fixed interest rate, and exploring subsidy options. Those who buy today benefit from the opportunity to participate in a potential market recovery.