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Current trends on the real estate market

The real estate industry has had to face many hurdles and challenges in recent years. No matter whether the Corona crisis in combination with material bottlenecks, rising interest rates and inflation, the war in Ukraine or the lack of predictability of government funding. All these issues have increased the pressure on the entire sector and even brought many construction projects to a standstill. Where do we go from here? What trends can we as developers observe?

First of all, the current situation on the real estate market must be viewed soberly and objectively. Often when it comes to the topic of "home ownership", many emotions are aroused and one gets a distorted picture, reinforced by media scaremongering. Because: Even the Ukraine war became already the "habit", the high gasoline prices were accepted & the bad predictions that the German population would freeze in the past winter, thank God also did not come true! It is still true that each property and each investment must be considered individually. Particularly since naturally also not each investor has the same conditions.

The Bayernareal Wohnbau GmbH & Co. Kg has your emphasis like the name already verlauten lets in the Land Bavaria - here particularly the governmental districts Upper & Lower Bavaria. These structurally healthy and steadily growing regions are characterized not only by the proximity of the Alps but also by the very good labor market situation. As a result, we are experiencing a steady influx of people in Bavaria, which is having a major impact on the housing market. Current forecasts show a population increase in Bavaria between 2021 and 2041 of 5.4% (source: Bavarian State Office for Statistics).

The shortage of supply has caused the rental market to explode in recent months.

exploded in recent months. This trend is set to intensify as uncertainty in the sector has seen a high number of new construction projects shelved and the immigration of refugees is adding to the demand for housing. Likewise, we note that many people are moving out of the cities due to home & mobile offices and are once again valuing rural regions.

Average rental price development of our new construction project locations over the last 3 years (Source: Homeday price atlas):

44% rent increase: new construction project "Alpenpanorama" in Bad Griesbach - 44 residential units

41% rent increase: New construction project "Plaza Neuötting" in Neuötting - 48 residential units

27.5% rent increase: New building project "Familienglück" in Eichenried - 8 semi-detached houses

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