A legitimate question that can be asked with common sense is: Why is there no dip in real estate prices in the midst of the coronavirus crisis? It would be obvious that the uncertainty surrounding job security would make people reluctant to invest in real estate. Buyers do not know whether they will still be able to service their loan tomorrow, while sellers may expect prices to fall. None of this has happened so far. Quite the opposite: despite the coronavirus crisis, house and apartment owners are enjoying a renewed increase in value on average. The national average price for a mid-range single-family home is now well over €400,000. The differences are, of course, huge because there are very few marketable properties in the big cities. This is no different in extremely expensive Munich than in Stuttgart or Frankfurt. There is a tendency here to buy smaller condominiums, because a price per square meter of up to 12,000 euros for a new-build apartment forces people to be efficient in their living. Why is the demand for housing increasing in Germany when the population is falling? A study (2019) by Prof. Bernd Raffelhüschen and Roman Witkowski at the University of Freiburg on behalf of the Schwäbisch Hall Foundation shows The number of both educated and retired households is increasing. After leaving school, young people leave their parental home to study or train and often move to a so-called "swarm city" with at least one university. Starting a career also usually leads to setting up a small household of their own. What's more: More older people of retirement age are living alone for longer than before - and this trend is continuing. Both population groups are therefore contributing to the fact that households are becoming smaller, but also more numerous. Conclusion: This stability in times of crisis has of course not escaped the attention of Chinese real estate investors. The above-mentioned points continue to suggest that investing in German housing is definitely worthwhile. Germany is and remains one of the most attractive markets in the real estate sector, especially for non-EU citizens. In China, owning your own property is seen as a very secure investment method for the future and therefore has an enormously high status in society. And what supports this idea of security more than a stable price trend despite the coronavirus crisis?
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