According to Sotheby’s International Realty, the shortage of craftsmen and building materials is having an impact on the luxury real estate market in Germany. While the demand for high-quality properties that do not require renovation is unbroken, interest in older properties in need of modernization is declining, the German partners of the real estate agent chain said. The prices for such objects from the 1970s to 1990s stagnated or even fell. Reasons are, on the one hand, rising interest rates and rising inflation. On the other hand, there was a lack of craftsmen and materials, which in turn led to cost increases. The consequences would be felt above all by property developers, who could also plan poorly because of interest rate and inflation trends. The number of project developments in the luxury market is also declining significantly.
Lack of craftsmen – unpopular luxury real estate – economy
