The Bremen real estate market is constantly evolving. Owners of apartment buildings face various challenges, particularly when it comes to rent pricing and sales. The rent index serves as an important guide, but can also cause uncertainty among potential buyers in certain situations.
In particular, this can play a role for investors if apartments are let at rents that are higher than the current rent index. This is because future rent adjustments or legal framework conditions influence buyers' calculations. In this article, you can find out which factors need to be taken into account and how owners can still achieve an optimal sales price.
The Bremen rent index: An overview
The rent index is an essential tool for determining the local comparative rent. It is based on a scientific analysis of realized rents and serves as a legal basis for rent adjustments and as a reference for legal disputes. In Bremen, a qualified rent index was recently published that affects tenants and landlords alike.
Important factors in the Bremen rent index:
Location: Differentiation according to basic, medium and good residential areas
Year of construction of the building: Different rent ranges apply depending on the age of the building
Features: Consideration of factors such as balconies, modernized bathrooms or energy efficiency
Rent price development: Comparison of rents over a period of four years
This rent index offers property owners a guide, but is not always congruent with the rents that can actually be achieved on the market.
Challenge: When rents are above the rent index
Many apartment buildings in Bremen are currently let at rents that are above the current rent index. This is not a problem in itself, but can play a role in some sales situations.
What aspects need to be considered when selling
Purchase price calculation by investors: Buyers often calculate the purchase price of an apartment building based on the sustainable rents that can be achieved. If a rent is significantly higher than the rent index, investors check whether it will remain stable in the long term.
Possible rent adjustments when re-letting: If an apartment is re-let, many landlords base their calculations on the rent index, which could lead to a reduction in income.
Banks and financing valuation: Banks often value properties on the basis of the local comparative rent. In certain cases, a higher rent can lead to a more conservative loan valuation.
Legal framework conditions: Regulations such as the rent freeze could, in individual cases, influence whether a rent increase or a new letting at the previous rent level is enforceable.
Example: Effects on the sales price
An apartment building with 10 apartments currently generates rental income totaling €8,000 per month. According to the rent index, a local comparative rent of €6,500 would be realistic.
A potential buyer will examine various scenarios when calculating the price. If he calculates cautiously and uses the comparative rent as a guide, this could have an impact on the purchase price offered:
Sale value based on current rents (€8,000 x 12 x 15) = €1,440,000
Sale value based on cautious calculation with €6,500 (€6,500 x 12 x 15) = €1,170,000
Sale value based on cautious calculation with €6,500 (€6,500 x 12 x 15) = €1,170,000
= €1,170,000.000In practice, however, other factors play a role, including the location, the condition of the property and the potential for modernization and rent increases.
Solutions for owners: How can optimal sales proceeds be achieved?
Have rental agreements professionally reviewed: A detailed analysis of existing rental agreements by experts can provide valuable information on optimization potential.
Addressing the right buyers: Some investors are more willing to take risks and do not value properties solely on the basis of the local comparative rent.
Long-term rental agreements with graduated rents: Well-structured rental agreements can create stability and promote trust among buyers.
Utilize renovation potential: Investments in increasing the residential value or energy-efficient renovations can help to justify a higher comparative rent.
Develop a professional sales strategy: Targeted marketing and a realistic, well-founded valuation are essential for a successful sale.
Conclusion: Take the rent index into account, but evaluate it in a differentiated way
The rent index in Bremen is an important tool for orientation, but should not be viewed in isolation. While it provides investors with a basis, other factors are also decisive for the market value of an apartment building.
It is advisable for owners to develop a sound strategy in advance of a sale in order to present the value of the property in the best possible way. Professional advice and valuations help to identify potential challenges and achieve the best possible sales price.
Act now: Have your property valued!
Do you own an apartment building in Bremen and want to achieve the best possible sale price? Take advantage of our expertise as DEKRA-certified experts and real estate agents (IHK). We can help you determine the realistic market value, avoid potential pitfalls and develop the best possible sales strategy.
Contact us now for a non-binding consultation and valuation or use our online quick valuation for an initial assessment!
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28209 Bremen
| Tel. | +49 421 - 27 88 88 15 |
| [email protected] |
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