ᐅ Is the Energy Saving Regulation from 2021 making new construction unaffordable?

Theodorius schrieb:
Let’s assume I could afford it – wouldn’t it be clever from a speculative standpoint to build a multi-family house BEFORE 2021?

No.
An investment always has to be profitable (whether it’s real estate or other asset classes). Currently, you build at cost x and get rent y. If the energy efficiency regulations come into effect, you’ll build at cost x+? and receive rent y+?. As long as you’re not building out in the countryside where there is no demand, the outcome will be the same.

Higher standards could also lead to construction companies’ and tradespeople’s excessive pricing returning to more reasonable levels.

haydee schrieb:
Looks like someone wants to get rid of money. Not that long ago, KFW 55 was an unaffordable fantasy. Now it’s standard and getting built less often?

The fact is, construction costs keep rising, and nowadays many who would have built before prefer to renovate an older building. Since wages haven’t kept up, this group keeps growing.

That’s why my idea is to quickly build a multi-family house now and consider it a speculative investment.

Then just go ahead if you think the idea is so great. I don’t really see what this discussion is supposed to achieve...? *pondering*

Have you ever wondered why prices have been rising in recent years?

Theodorius schrieb:
Hello!

My banker told me that I shouldn’t wait much longer with my new build because from 2021 onwards the regulations will change so drastically that new builds will cost 20-25% more than they do today.

That is already happening simply because demand is increasing.

Theodorius schrieb:
My banker used the term "concrete gold"

Concrete is quite bulky, especially when it eventually needs renovation. It doesn’t last forever.

Theodorius schrieb:
The fact is that building keeps getting more expensive, and already today many who would have built before are choosing to renovate older buildings instead. Since wages are not keeping up, this group is getting larger.

It has always been the case that not everyone could afford to build. Perhaps slightly more so now.

Also, demand in growth regions is still higher than what can be satisfied. Construction companies benefit from this, but they don’t just burn through the money—they can spend it themselves.

nordanney schrieb:
No.
An investment always has to pay off (whether it’s real estate or other asset classes). Right now, you build at price x and get rent y.

YES, but IF I plan something like that, wouldn’t it be smarter to build now at cheaper conditions and then benefit from higher rents later...?
Or do you think that the higher rent I can charge for an energy-efficient house will cover the more expensive financing? I think you should at least run the numbers on that.