According to real estate investor Max Reidl, you shouldn’t sell your properties at the moment. Maximilian Reidl/ Getty Images/ Westend61/ Collage: Dominik Schmitt
In recent decades, real estate has been considered a solid investment. According to the Federal Statistical Office (Destatis), between 2010 and 2021 alone, prices for one- and two-family houses and condominiums rose by around 84 percent nationwide. For comparison: the inflation rate only rose by 17 percent in the same period.
However, the real estate market has changed. Due to increased financing costs and persistently high inflation, prices for residential property in Germany fell by 6.8 percent in the first quarter of this year compared to the same period last year. As Destatis reports, this is the sharpest decline since 2000.
And even if prices have fallen somewhat, according to the Bundesbank, many properties are still overvalued. Dem Monthly report from August According to this, there is potential for further – possibly noticeable – price corrections.
“Do not sell property under any circumstances at the moment”
According to Max Reidl, however, this does not mean that concrete gold is over. Quite the opposite – now is the “golden age of real estate,” the real estate investor tells Business Insider. There are “rosy times” ahead for existing owners in particular.
Reidl has made millions over the past 15 years using project development and the fix-and-flip strategy – buying properties, renovating them and then selling them on as quickly as possible.