Interest rates are rising, savings are shrinking: many people in Germany can no longer fulfill their dream of owning their own home. On the other side of the German-Polish border things are different.
Free-standing with a garden, modern, 150 square meters of living space: in Kunowice there are houses like this for less than 250,000 euros. “However, the offers have become rarer,” says David Lis. The real estate agent still counts six in the small town, ten minutes by car from Frankfurt (Oder). Much has already been grazed here.
Two streets down, Lis stops at someone who got there early enough. After retiring to the country, that was always clear to the 65-year-old owner. “This nature here, the poppies, the horses in the paddock,” he enthuses. “It’s a landscape to die for.” For a long time he tried to find this happiness in Germany, especially in Brandenburg or Mecklenburg-Western Pomerania. “We saved forever,” said the retired civil servant. Still, it wasn’t enough in the end.
His property has 1,600 square meters and 150 square meters of living space: it didn’t cost 200,000 euros at the time. “Because of the renovation, it would certainly be around 50 percent more expensive today,” says Lis. The region is becoming more and more popular, which is also confirmed by a look at the neighborhood. Densely packed, the slate-grey new roofs gleam in the sun.
Expensive loans, few savings: Especially in times of crisis, owning a home in Germany remains an unfulfilled dream for many. In Poland it can still come true. Because, despite rising prices, everything is still a little cheaper – and the bureaucracy allows it.
“Even if prices in Poland have risen, houses and apartments there are still 20, 30 or 40 percent cheaper than here,” says Florian Koch, professor of real estate management at the University of Applied Sciences in Berlin. However, reliable data is scarce, especially for rural regions such as those on the border.
Ukraine war and inflation affect purchasing power
Admittedly, the influx from the Ukraine in Poland is still significantly greater than in Germany, which is driving demand and thus prices. “Given the differences in income, it is unlikely that real estate prices in Poland and Germany will be the same,” says Koch. And where there is a price gap, people also move away. “We also see that in other border regions, such as the one with France.”
In the meantime, owning a home has also become cheaper in Germany. The prices for residential real estate fell in the first quarter more than in 23 years, as reported by the Federal Statistical Office. On average, they cost 6.8 percent less than in the same quarter of the previous year. The property boom that has lasted for years is abating for the time being.
However, the Ukraine war and crises are draining the purchasing power of interested parties. The high inflation has left its mark, also on some savings accounts. And loans and construction interest are significantly more expensive today than they were two years ago. The result: the new business of the banks with residential real estate loans to private individuals is on the ground. According to Bundesbank data, it fell again by around half in April.
“A comparable property on the Polish side costs a maximum of two-thirds as much as on ours,” says Fred Mahro, mayor of the border town of Guben in Lusatia. And that despite the fact that real estate prices in Guben also went down slightly. “So just like the entire trend in Brandenburg,” says Mahro.
Sought-after regions in Brandenburg – living space scarce
It is clear that the real estate market in Brandenburg is under particular pressure. No other federal state recorded so many inner-German immigrations in the past year. As reported by the Federal Statistical Office, more than 14,000 Brandenburg residents moved to the area, mainly from Berlin. Brandenburg covers by far the largest part of the German-Polish border.
“Teltow-Fläming south of Berlin and Potsdam is particularly popular,” says Achim Amann, board member of the German Real Estate Association (IVD) Berlin-Brandenburg. Lehnin Abbey, Brandenburg an der Havel and the Uckermark are also very popular. “Further north, of course, there are Müritz and Rügen, the classics,” says Amann. His agency is also selling a detached house in Eggersdorf near Berlin that has a comparable living space to that in Kunowice. The garden is not even half the size, but it still costs around 560,000 euros. Almost three times the purchase price in Kunowice.
There is also cheap housing on this side of the border, especially in rural areas. So why move to a country with a foreign language? “That should also be due to the energy requirements,” says Koch. They are generally more lax in Poland. An incentive – especially if the house you have bought still needs to be renovated.
In addition, it is becoming easier and easier for Germans to move to Poland, says broker Lis. “Until 2016, you still needed a permit from the ministry or a Polish straw man to be the registered homeowner,” he says. In the meantime, however, Germans can buy under the same conditions as their Polish neighbors. “The Germans have been the second largest group of foreign buyers in Poland for years, just behind the Ukrainians.”
For Schäfer, too, the bureaucratic effort in 2020 remained manageable. In addition to the nice neighborhood and lots of greenery, what he appreciates about Kunowice is its proximity to Berlin. “This short hop across the border was important to us,” he says. Be it for a doctor’s visit or for a visit to the family – you are quickly back in your old homeland. “We’re not from the world here.”
Source: Stern
