Rising construction costs, a lack of skilled workers and high interest rates mean that new residential buildings are no longer being built in many places. The standstill in new construction is not only changing the cityscape, but is also shifting the dynamics on the real estate market. This opens up new sales opportunities for owners of existing properties.
Expensive construction, reluctant developers
Demand for housing remains high – especially in cities, suburbs and growth regions. But those who want to build at the moment are quickly coming up against financial limits: raw materials and tradesmen’s services are expensive and interest rates for building loans have risen significantly. As a result, many building projects are being postponed or canceled altogether.
Even if initial figures for 2025 indicate a slight recovery in building permits – particularly in the single-family home segment – new construction is still far below the target of 400,000 new homes per year. The construction industry is talking about a “permanent dip”, with many experts even referring to a structural crisis.
When new buildings are lacking, the existing buildings play the main role
The direct consequence: the supply of new properties is falling – in an already tight market. Searchers who originally speculated on a new build are now increasingly turning to existing properties. As a result, demand is focusing more on existing properties.
This development is having an impact on pricing. While prices have stabilized or even fallen slightly in many places in recent months, this trend is reversing in some cases for existing properties in good condition – at least in certain locations.
Strategic advantage: Why owners are now at an advantage
This situation opens up new opportunities for owners of existing properties. In a market where fewer new buildings are being completed, the attractiveness of existing properties is increasing – especially if they are well maintained and ready for immediate occupancy.
Sellers can benefit from the fact that their property has increased relevance in the current market environment. Demand may pick up again, especially for detached houses, terraced houses and apartments in popular districts. However, it is important to go into the sale with realistic price expectations and a sound market analysis.
Do you own a property and are thinking about selling? The current market situation could suit you. The decline in new construction makes existing properties more sought-after – and increases the chance of a lucrative sale.
We analyze for you how the new construction slump is specifically affecting the price of your property – and show you how you can benefit from it. Contact us for sound advice.
Notes
The generic masculine is used in this text to improve readability. Female and other gender identities are explicitly included where this is necessary for the statement.
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific individual case.
Photo: © Bubuzya /Depositphotos.com
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