Construction boom in the country: These are the dangers for builders Monday, 19.06.17 , written by Juliane Wellisch New houses and apartments are being eagerly built, not only in big cities, but also in rural areas there is a veritable building boom in many places. But while there is sufficient demand in urban areas, rural areas are often over-built. Who wants to build a house, should therefore pay close attention to whether the site is fit for the future. > Real estate bubble in the countryside: builders are attracted to the outskirts
In some areas of Germany, significantly more new homes and apartments are built than is reasonable on the basis of population growth . This emerges from a recent study by the Institute of German Business (IW). Accordingly, new properties are being built, even though there is a vacancy in the area and the need for housing is actually covered.
The clearest example is the Waldeck-Frankenberg district. Nearly 200 apartments were built there in the years 2011 to 2015. On the other hand, only seven were used. Actual demand was thus exceeded by 2,764 percent . For private house builders in particular, such a difference between necessity and construction volume can become a problem in the long term.
Construction boom in the country: These are the consequences for homeowners
Building land is often very cheap in rural areas. It is therefore not surprising that a lot of owner-occupied residential property is created here. For some, long journeys to and from work are accepted . The same applies to shopping facilities and facilities such as doctors’ offices or the post office. This situation can get worse when neighbors move away later and find buyers for their homes. Because in this case close due to the lack of customers, the remaining stores, doctors retire.
In addition, according to the IW experts, there is another danger: the villages are being dispersed . This means that instead of settling in the village center, for example, families and couples prefer to build their own house outside the center. This results in the destruction and division of landscapes, but also reinforces the declining value of real estate and the poor supply situation on the ground .
Then builders should pay attention to the location
People dreaming about their own home should consider carefully whether they want to build their own house or buy an existing one and which location is recommended for both variants. For this it is important to deal with the population forecasts on the ground and ask yourself the following questions:
- Does the region already suffer from rural exodus anyway?
- Which localities in the target region are likely to attract people in future due to resident companies?
- What about vacancies?
Answering these questions can help potential homebuyers or builders to make their decision. In any case, it is advisable to take into account when looking for a suitable location, whether there might later find a buyer for the planned house .
The right location for the home: investing in the future
In case of doubt, it is advisable to spend a little more money on the home and settle for it in an area that is not threatened by depopulation. Occasionally, the additional costs incurred can be compensated by choosing a favorable mortgage lending. The Stiftung Warentest, for example, repeatedly states in its investigations that, depending on the type of financing and the amount of the purchase price, there may be interest rate differentials in the five-digit euro range. Therefore, it is advantageous to compare the various conditions with each other in advance of a real estate purchase or construction project.
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IW sees municipalities as their duty
Although future homeowners can see the new IW study as an indication of how important the choice of location for the home is. The institute sees not only the builders in the duty. Rather, the experts appeal to affected communities, no more write out new land and possibly demolish old buildings . In addition, money must be invested in city centers. Only in this way can the villages be made more attractive again.