Berlin, March 30, 2022 – Germany’s leading residential privatization company and real estate investor, ACCENTRO Real Estate AG, in collaboration with the market research institute INNOFACT, conducted a representative survey on the requirements and preferences of prospective homebuyers regarding condominiums, as well as their motivations for purchasing. According to the survey, most prospective buyers are looking for a home to live in themselves, and young buyers in particular place a high value on the environment and sustainability. Personal freedom (63 percent) within one’s own four walls and the property as a form of retirement planning (57 percent) are the most important reasons for buying real estate in general. Factors such as government incentives (14 percent) or low interest rates (22 percent) play only a secondary role in home purchases. Buyers who rent out the property—that is, use it as an investment—sometimes see things differently. One in three investors wants to take advantage of low interest rates, compared to only one in five owner-occupiers.
“The much-discussed interest rates apparently do not play a major role for many prospective buyers. The different motivations of buyers are also reflected in their varying advisory needs. While value stability and quality of living are the primary considerations for owner-occupiers, a favorable financing structure can be particularly decisive for an investor,” explains Fabian Henning, Head of Sales at ACCENTRO Real Estate AG.
Different Motivations for Buying Real Estate
The desire for security is a top priority when purchasing real estate. 80 percent of respondents cited retirement planning as a key reason for buying real estate as an investment. Other motivations include real estate as an income-generating asset (73 percent), closely followed by the desire for financial security (72 percent) and protection against inflation (48 percent). 76 percent of respondents stated that they intend to use the property themselves. Younger people in particular (80 percent) are more likely to use the purchased property for their own purposes than older respondents (62 percent).
Purchase Price and Size—What Matters When Buying?
Eighty-four percent of respondents stated that the purchase price of a property is one of the most important factors in their decision. In addition, living space and the condition of the building (83 percent each) are important. Ecology and sustainability play a role for 58 percent of respondents. For owner-occupiers in particular, an appropriate size (85 percent) and a balcony or garden (79 percent) are also decisive criteria. In comparison, these factors are somewhat less important for investors (69 percent for a balcony and 59 percent for a garden). “The preferences regarding gardens and balconies are quite similar for investors and owner-occupiers,” explains Fabian Henning. “This is not surprising, as balconies in particular are a factor that increases property value and thus also raises rent.”
“We’re very pleasantly surprised by the growing awareness of ecology and sustainability when it comes to buying real estate,” adds Johannes Müller, Head of Marketing at ACCENTRO Real Estate AG. “Just under 60 percent of respondents stated that environmental and climate protection considerations are important when purchasing real estate. In addition to the embodied energy used in a property’s construction, energy efficiency and operating costs are particularly important.”
Buying Real Estate—Digital Apartment Search and Stress-Free Transaction
When asked about the real estate buying process, 81 percent of respondents stated that a smooth process and a stress-free transaction were most important to them. This was followed by securing a favorable purchase price (76 percent) and receiving excellent advice from a real estate agent (75 percent). The search for a home takes place primarily online. Popular channels include real estate portals (61 percent), online search engines (50 percent), and real estate agent websites (37 percent). Once a property is found, an in-person viewing continues to play a decisive role in the purchase. 81 percent of respondents want to get a first-hand look at the property. That said, online viewings are also very popular. Already, nearly one in two people also want to get a virtual impression first. Digital documents are also increasingly in demand (77 percent). Printed documents are important to only 59 percent. Only one in two younger people (ages 25 to 39) still request printed documents, compared to 70 percent of older people (ages 50 to 69).
“Digitalization plays a major role in the property search,” says Müller. “From online real estate portals to Google searches to smartphone apps—Germans want a wide selection and to be able to view and understand all the information from the comfort of their own couch. However, buying a property without conducting an in-person viewing remains out of the question for the vast majority.”
Gender-Specific Differences in Real Estate Purchases
A balcony and a garden are more important decision-making criteria for women (83 percent) than for men (68 percent). There are also differences between the genders when it comes to real estate agent commissions. For 65 percent of women, a commission-free offer is important, but only for 56 percent of men. Male buyers (51 percent) make more rational decisions when buying real estate than women (36 percent). One in four women (27 percent) and one in five men (22 percent) rely on their gut feeling when buying real estate. Men (65 percent) are more likely than women (35 percent) to view real estate as an investment.
“We can observe some differences in preferences between women and men when buying real estate. It’s also a fact that women now make up a growing share of real estate buyers. Therefore, it’s important to understand the needs of individual buyer groups and to make suitable and attractive offers accordingly,” Henning concludes.
About Accentro Real Estate AG
ACCENTRO Real Estate AG is the market leader in residential privatization in Germany. In addition to its home market of Berlin, the company focuses on promising metropolitan regions such as Hamburg, the Rhine-Ruhr region, and Leipzig. In its Privatization division, ACCENTRO sells apartments from its own portfolio to owner-occupiers and capital investors or—bundled as portfolios—to institutional investors. In its Services & Ventures division, ACCENTRO markets apartments for investors and project developers—including through joint venture partnerships. ACCENTRO Real Estate AG is listed on the Prime Standard segment of the Frankfurt Stock Exchange (WKN: A0KFKB, ISIN: DE000A0KFKB3). investors.accentro.de
Investor Relations Contact:
Thomas Eisenlohr
ACCENTRO Real Estate AG
Kantstraße 44/45
10625 Berlin
Email: eisenlohr@accentro.de
Phone: +49 (0)30 88 71 81 272