As the European fund rate will remain low in 2019, so that the conditions for new project developments remain good. The challenge will be to reconcile current projects with the future market. Concerning digitisation real estate has room for improvement.
Low fund rates and a high demand for new housing led to an enormous growth in the construction and real estate industry in recent years. For three years now, the European Central Bank has kept the key interest rate at zero percent and it is expected not to be raised in 2019 – to the delight of the real estate industry. Since traditional savings are unattractive to consumers, money is often invested in real estate and project developments are getting a new upswing. The GdW Federal Association of German Housing and Real Estate Companies has now, together with the scientific InWIS institutes, summarised the requirements for a future-oriented housing market in the study “Housing trends 2035”. It shows that sustainability and digital development are indispensable – also in the real estate industry.
Digital living: more comfort and better energy efficiency
In the real estate sector, digitisation is introduced, above all, by new building services, also known as smart homes. B this, a significant saving in CO2 emissions can be achieved by networking household technology and appliances. Especially in new buildings, this technique is already standard to some extent. For the real estate industry this means not only an improvement of the technical systems, but also the introduction into new market segments and possibilities to develop new cooperation partners.
New forms of living for new needs
Demographic and socio-economic factors are also changing the requirements for new real estate developments. Real estate companies see an increasing desire for more flexible forms of living, such as temporary housing or shared living. In addition, the timing for marriage and starting a family shifts backwards in Germany, so that the demand for small single apartments is growing. For this reason, many project developers are focusing on micro apartments and tiny houses with optimised floor plans for younger generations. At the same time, barrier-free housing units and servicing projects are responding to the consequences of demographic change with an ageing society. GdW therefore sees great potential in extending already existing funding in terms of age-appropriate renovations.
B and C locations as alternatives for living in the city core
The association also sees enormous development potential in B and C locations. Swarm cities are still experiencing strong growth, while rural areas have been shrinking for several years. However, there is often attractive living space with a close proximity to nature. The high real estate prices in urban areas make rural areas especially attractive to older people and families. With a strong infrastructure and fast connections to nearby cities, B and C locations can also be a real alternative for homes in the heart of a metropolitan area.