Friday, December 14, 2012

Rich managers drive the property prices

Housing costs explode. Reason is the many luxury apartments that are being built. Buyers are often well-heeled companies handlebars that go into retirement and preferably move to the cities.

Even the name promises idyllic tranquility and pure luxury: The Lenbach gardens in Munich, the Sophienterrassen in Hamburg, Andreas Quarter in Dusseldorf.

Everywhere in Germany are currently being built in the middle of the city, new apartment blocks - which are nothing less than that, because it's rather pompous properties that promise in advertising: "More is not luxury." And where many wondering who the estimated prices can actually afford.

But the demand is there. And it's growing, with the result that the future rather more such residential palace to be built. However, this has an impact on the other residents of their respective districts. Even for them in the living is getting more expensive, even if they continue to live only in a boring block from the 50s.

Living in the city is again made attractive

"Many inner cities evolved tremendously in recent years to their advantage," says Uwe Schmitz, CEO of Frankonia Eurobau AG, one of the largest property developers, who also created and especially those luxury accommodations.

After the war, were there quickly and hastily new apartment blocks have been raised, equipped spartan and rarely constitute architectural highlights.

But in recent years, the city planners have done a lot, living in the city again to make it attractive. For example, the center of Düsseldorf is the construction of the tunnel moved closer to the Rhine river. That should make the city more livable.

20,000 euros per square meter - Setai condos Miami Beach

And now leads to the desired result. People want to stay there again, even and especially those with high incomes or large assets. "Many managers who have earned over the last ten to fifteen years, put a lot of money, now to rest," says Schmitz, "and they do not want to retire to spend in the country, but in the middle of the city." He counts them to the main clientele, the newly built luxury apartments buy.

For only they can afford real estate, where the price per square meter, as in Hamburg, starts at 7000 Euro and which are at least 100 to 120 square meters. In Munich, for apartments in this category are particularly attractive locations now even prices of up to 20,000 euros per square meter required. And paid.

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