In an interview with the Handelsblatt, Sven Carstensen, board member of the analysis company Bulwiengesa, warns private property buyers about unrenovated condominiums.
In addition to the costs of the renovation, there is also the risk that the co-owners will not go along with it. “This can quickly turn into stranded assets,” says the expert. Things are different with your own house, as you can control and plan the renovation yourself. Carstensen expects “very strong” increases in rents for new apartments in the coming years. He believes that anyone who wants to buy a house or an apartment and has enough equity now has “attractive options” for new buildings or renovated existing properties. When it comes to existing properties, however, interested parties should “pay more attention to the issue of sustainability”.
Comment from ???
With a view to climate protection, the renovation of existing housing is much more important than new construction. The majority of apartments in Germany have the energy standard of the 1960s, and bringing this stock up to a contemporary level is a Herculean task. However, renovation has recently become more and more challenging due to new regulations, rising prices and scarce resources. Private individuals can easily get ahead of themselves on a renovation project, especially if they still have to deal with co-owners. The safer and often more cost-effective alternative in the long term is to purchase a well-renovated existing apartment. Housing companies like d.i.i. have completely different options for taking advantage of economies of scale and price lows and tapping into funding sources in order to carry out renovation projects economically and quickly.
Board of Directors & Head of Asset Management
d.i.i. Deutsche Invest Immobilien AG