Real estate prices can still fall that low

If you are considering real estate as an investment, you have to recalculate. If we again assume the average price of EUR 3,300 per square meter, an average monthly rent of EUR 9.50 per square meter results in an annual yield of 3.45 percent. So far, interest costs of 1.0 percent, maintenance costs of 2.0 percent and administration costs of 0.45 percent have been paid from this. If the interest rate now rises from 1.0 percent to 4.0 percent, the necessary return climbs to 6.45 percent (plus 3.0 percentage points). But if the rent is not allowed to rise due to political restrictions, the system only pays off at a square meter price of 1,767 euros. If one deducts an expected refurbishment to increase energy efficiency of 400 euros, the cost-covering price falls to around 1,367 euros. The economic valuation of the real estate investment falls by a total of 59 percent.