Due to low interest rates, the construction industry has been booming for many years. Then the interest rate turnaround came and changed everything. The higher interest rates drove up construction costs, and many builders could not afford it and cancelled contracts. Others did not even consider a construction project due to cost reasons.

Currently, the mood in the construction industry is really bad. In the latest survey by the ifo Institute, it was found that the business climate has fallen to its lowest level since the survey began in 1991.

Interest rates have risen, and with them, construction costs. At the same time, property prices have fallen. Those who would buy a property now could make a real bargain, especially since construction interest rates have apparently reached their turning point. Recently, they have fallen again.

12.7% – Property prices are falling! Throughout Germany, property prices are currently falling on the real estate market. According to the Federal Statistical Office, these prices fell by 10.2% in the third quarter of 2023 compared to the same period last year. The largest decline is in the top 7 regions in Germany, including Berlin, Düsseldorf, Frankfurt am Main, Hamburg, Cologne, Munich, and Stuttgart. Prices in these regions have dropped by 12.7%.

According to tagesschau.de, Jörg Utecht, CEO of credit broker Interhyp, sees an opportunity for buyers for two reasons. Firstly, prices have fallen. Secondly, the supply of properties has increased significantly.

„This, of course, also leads to a certain negotiating position that buyers can use. We recognize that a favorable window has opened in the real estate market, where it is possible to make some bargains. Interest rates have fallen, and property prices have not yet risen across the board,“ Utecht is quoted on tagesschau.de.

Germany is sliding into a recession. You can use the dire situation in the construction industry to your advantage. However, the fact that other industries are also struggling is more of a cause for concern. The recession has now officially arrived in Germany, with GDP falling by 0.3%. Germany’s economy is significantly lagging behind within the EU.

The low wealth of German households is also cause for concern. This was the recent finding of the ECB. According to a calculation by the central bank, the median wealth of households in Germany is 106,000 euros. In comparison to the EU, we rank 15th out of 20 countries. Greece’s average net wealth is 97,000 euros, ranking 16th.

What you should do now Germany is sliding from one crisis to the next. Before problems can be solved, new challenges arise. In these difficult times, it is also more difficult than ever to find a smart investment strategy. An investment strategy that protects and grows your wealth.

We advise you to seek professional support. You can get this with „Sicheres Geld,“ the advisory service for critical investors who want active asset protection. Loyal readers never want to miss the recommendations because they have been able to protect and grow their wealth in the past two years despite the crisis.