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Berlin (German news agency) – The Institute of the German Economy (IW Köln) expects a sharp drop in the value of real estate as long as the legally required renovations have not yet been carried out. “There is already stronger price pressure on older buildings because of the high energy prices,” said Professor Michael Voigtländer from the IW of the “Bild” (Thursday edition).
“Because of poor insulation and old heating, the additional costs are very high. There could be a price reduction of up to 20 percent for older buildings,” says Voigtländer. The impending high renovation costs would be passed on as a minus on the property value. According to the Federal Statistical Office, the prices for apartments and single and two-family houses fell by 3.6 percent in the fourth quarter compared to the same quarter of the previous year. According to the real estate agency McMakler, the prices for residential real estate have even fallen by 6.2 percent compared to the previous year.
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