Construction costs for a multi-family house with 10 residential units, fully basemented

Why would anyone want to take on a project like this?

You probably have no idea about renting. Maybe you have a big social heart.

To make it short. Just don't do it. Residential construction in Germany is not without reason at rock bottom.
If you really want to play landlord, then wait until there are distress sales and buy cheaply there.

The political uncertainties are also very large and come with very high risks.

Even the uncertainty about the new property tax worries me the most. Who knows how much it will increase and whether the charging ability will even remain. When the corona crisis started, landlords couldn't even terminate the lease of delinquent tenants anymore.

In Spain, you are out of the apartment after 2 weeks if you don't pay the rent, in Germany it takes 2 years. If you don't pay for your hotel room you are charged with fraud. If you don't pay your rent, nothing happens at all.

And let's not even talk about construction costs. The ratio of rental income to construction costs is simply no longer viable.

But still, I would be interested in your calculation.
So the possible rent per sqm and the financing rate. What return are you expecting here? How long do you want to finance?

Why would anyone want to take on such a project?

I have a few residential units, but all existing buildings. When I had the opportunity to buy the plot, the situation looked different. 1% interest, reasonable construction costs. I certainly took too much time, but it has to be well thought out. In my opinion, there has simply been too much movement in the last 2 years. I'm quite relaxed about it, I don't have to build. I am aware that I won't make big profits from day one. I usually enjoy the other properties, I come from the area, I'm not a big investor. Affordable housing in my hometown, which will grow my wealth in the long term. I don't want to go bankrupt because of it and ideally have some monthly income in many years, or partially sell (some of it).

And we don't even want to talk about construction costs. The ratio of rental income to construction costs is simply no longer representable.

I can't imagine that will be the case permanently. How are some companies still able to build currently?

But I would still be interested in your calculation. So the possible rent per sqm and the rate for the financing. What return are you expecting here? How long do you want to finance?

11€/m² is realistic, 35 years, approximately 4.4% gross return. Long-term asset growth is the priority; otherwise, I would have to invest more equity, which I don't want. It is supposed to be a long-term investment; I can make more money with emergency sales or renovations.

Currently, almost all companies are only completing orders from 21/22, which were just started at favorable interest rates. By 25 at the latest, nothing will be happening in construction anymore because all the old orders will have been completed by then.

Currently, almost all companies are only finishing orders from 21/22, which were just started at favorable interest rates. By 2025 at the latest, nothing will be happening in construction anymore because all the old orders will have been completed.

The interest rate turnaround has been initiated, by 2025 rates will be back at 2% and the casino will run again. Did people actually always think in the past that the world was ending and it was all over?

The interest rate turnaround has been initiated, in 2025 we will be back at 2% and the casino will be running again. ...

oh if only that were certain. We (company) want to build something (bigger) again around 26/27 and I would be very happy about 2% less interest. If we are at 2% in 25, where will we be in 2026, where in 2027?

The interest rate turnaround has been initiated, in 2025 it will be back at 2% and the casino will be running again. Did people actually always think the world was ending and everything was over in the past?

Let's hope so. But I still can't really believe in it.