The costs of using your own property have risen sharply recently, mainly due to high interest rates. Nevertheless, real estate delivers attractive returns in the long term.
For many years, it was more worthwhile to buy a property than to remain a lifelong tenant. But last year that changed: the rapid rise in interest rates from 2022 onwards has caused the costs of housing for owner-occupiers to skyrocket. Property owners now pay significantly more per square meter than tenants. The market reacted promptly and collapsed sharply. Buying residential property is no longer worthwhile, was the widespread opinion in 2023. If you only look at the last year, that is true.
Source: Stern
