Rent out or sell a condominium? Decision in times of crisis?

Yes, that was the rule, but in the metropolitan outskirts there was often a lot to gain. Because there were still properties available in small towns (around 20k inhabitants) for 3.5k per m2 in new construction, which could then be rented out for 12€ per m2. Of course, it was also risky, because so far only up to 10€ per m2 had been charged in those places. But many who found 16/17€ per m2 too expensive in the city then moved outwards. And those are more or less the 2018 prices. From 2020 onwards it naturally got much more extreme. Currently (2022), new constructions here are more around 35 annual rents. That hardly pays off, of course.

Yes, that was the rule, but there was partially a lot to gain in the suburban belt of major cities. Because there were still properties available for 3.5k per m2 in small cities (around 20k inhabitants) in new construction, which could then be rented out for 12€ per m2. Of course, it was also risky, because until then, at most 10€ per m2 were charged in those places. But many who found 16/17€ per m2 too expensive in the city then moved outwards. And those are rather the 2018 prices. From 2020 onwards, it obviously got much more extreme. Currently (2022), you are more likely at 35 annual rents for new constructions here. That hardly pays off, of course.

If you have to pay 4-5% interest, you can actually not enter above 20x annual net cold rent when renting out. Could be an indication of the future price development....

If you have to pay 4-5% interest, you actually can't enter at more than 20x the annual net cold rent when renting out. Could be an indication of future price development....

That is why the construction of new apartments will also collapse. Because for what can still be financed, it is simply not possible to operate economic new housing construction, as high land and construction costs stand in the way. What happens with the existing stock remains to be seen. But a price correction in the range you mentioned also seems likely to me.

That is why the construction of new apartments will also collapse. Because for what can still be financed, a profitable construction of new housing is simply not possible, as high land and construction prices stand in the way. What happens to the existing stock remains to be seen. But a price correction in the range you mentioned also seems likely to me.

Of course, a price correction is likely. However, it will be gradual and will depend heavily on whether we are talking about Munich Bogenhausen or Hamm Uentrop. Because the tight supply, speculation, and general uncertainties all remain.

What one currently sees is rather a dramatic price drop for energetically poorly renovated houses, while energy-efficient younger houses tend to still increase in value. Because 3-4,000 m³ of natural gas per year, and sometimes even 5,000 m³ in a chilly winter... in the long run, nobody can afford that anymore.

You are absolutely right. Of course, new-build properties from 2000 onwards will decrease significantly less or not at all in good locations. Because hardly anyone wants a 40-year-old house when it comes to heating costs and to pay 600+ per month for electricity/gas despite the gas price cap. And even after the price cap, the price level will remain twice as high due to LNG. Anyone who now owns a new build from 2000 onwards is currently on the winning side. And one must not forget one thing. Until 2018, prices were still somewhat normal (also for new builds). Because only from then on did it become extremely expensive. In other words: now a 15% drop is only a small correction of the absurd post-corona prices from 2020-2022. That is why our new builds remain stable in value. At least if one built at normal prices until 2018. The value from 2018 will always be maintained.

If you have to pay 4-5% interest, you basically cannot enter at more than 20 times the annual net cold rent when renting out. Could be an indication of future price development....

There are no apartments in all of southern Germany for 20 times the annual rent. Not even if someone has to sell because they need the money for the single-family house. Unless you go towards junk properties, which are rented by people who otherwise get nothing. Then you might as well rent by the hour. Since there is still a shortage of living space, rents will not fall, and since half of the buyers purchase for self-use, purchase prices will not fall either. It is currently just very little movement in the market and everyone is waiting.