The real estate service provider JLL regularly reports on new trends and developments in the real estate sector. Now the experts at JLL are observing a trend toward building in the existing stock. They identify the following reasons for this: New construction properties are difficult to finance in many places in terms of price. But the great shortage of space and building land in Germany also ensures that modernizing and building on existing properties brings promising prospects for the future.
Because regardless of whether we are talking about single-family or multi-family homes, commercial properties or new offices - building land is becoming increasingly scarce in Germany. Since there are no signs that this development will change in the next few years, existing properties are becoming increasingly attractive for both private users and investors. This is because many existing properties and land designated as building land have a lot of development potential. They can be optimized in such a way that real estate needs are better met, the value of the properties increases and interesting investment and earning opportunities open up.
When expanding and converting existing real estate, increasing the building mass plays an important role, among other things. The addition of further floors not only creates additional living and usable space, but also increases the value of the property and the income opportunities, for example through rentals. To make real estate more attractive to the market, it is advisable to modernize the properties and improve the energy balance. If the property is used for commercial purposes, its use should be reviewed and optimized. This includes, for example, restructuring existing work paths and processes and adapting them to the building. If the existing space is used optimally, there is usually more usable space available that can be taken up by other users and tenants.
Source: JLL
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