IReal estate, also as an investment, becomes interesting for many people, especially in times of high inflation. Because in principle, tangible assets like these promise to retain their value in times of crisis. In view of an inflation rate in Germany of 7.9 percent in August, such considerations are becoming increasingly important. After the long boom on the German real estate market, however, the situation here has now deteriorated. Nevertheless, there are more younger investors in particular who are looking for real estate as investments.
This is the observation made by the brokerage firm of Poll Immobilien. According to the results of a survey of around 220 in-house real estate experts in July, almost three quarters of those surveyed reported such a development. The younger generation is also overtaking the older ones, they say. According to this, around 70 percent of the investors who had been looking for a suitable investment property within a year were between 27 and 42 years old. In contrast, 43 to 57-year-olds invested their money in real estate in only 30 percent of cases.
Not so long ago, the picture looked very different. Before 2020, for example, older private investors and capital investors would have clearly made up the majority, they say. In almost 72 percent of the cases, they were between 43 and 57 years old, and real estate investors between the ages of 58 and 76 accounted for 10 percent. On the other hand, only about 18 percent of those interested were 42 years or younger.
So why are real estate investors getting younger? The reason given by a good three quarters of the real estate experts and therefore the most common reason was that the purchase of a property is also considered a crisis-proof investment by the younger generation. In addition, a large community of heirs is growing up. This has money. In 55 percent of the cases, investments in real estate were made by younger buyers as a result of inheritance. The fact that real estate is a trending topic in the media, but also in families and circles of acquaintances, in which many wanted to be a part, was also frequently mentioned (46 percent). A good third of these experts also cited a pronounced career focus of the younger generation as a further reason for the change in the age structure of real estate investors. Multiple entries were possible.
Due to the economic and political situation, the real estate industry is also facing changes, says Daniel Ritter, managing partner at von Poll Immobilien. Nevertheless, real estate proved to be a stable investment in times of crisis. Above all in very good and highly sought-after micro-locations, the price development remains at a stable level, even if it tends to stagnate overall or fall in some places. The younger generation has also recognized this, because there are many good reasons for real estate investments, says Ritter. The willingness to invest capital sustainably is also firmly anchored in the mentality of younger people, and they too seek security in this environment.
