Real estate in the countryside: a trend?

Property in the country: according to DIW particularly interesting for young families and pensioners

According to a new study, the desire to move to the countryside is growing in germany. After rural regions had to struggle with migration to the big cities in the past decades, a trend reversal is now becoming apparent. Young families in particular are increasingly interested in property in the countryside. Since 2016, more people have been moving out of germany's seven largest cities than moving in. This trend mainly affects people with a german passport. Foreigners, on the other hand, still prefer large cities. The reasons are quickly explained: there is a lack of affordable properties for sale, the trend toward home offices is making people less dependent on their place of work, and infrastructural measures in small and medium-sized towns are making them increasingly attractive again.

Property in the countryside: these are the reasons

According to an evaluation prepared by the german institute for economic research (DIW) back in 2016 on the basis of figures from the federal statistical office, more people have been moving from the seven largest german cities to the countryside since 2014 than have been able to compensate for the trend by moving in from the regions again. One of the reasons is also the aggravated rent and purchase situation in big cities. But also the desire to live in larger living spaces is hardly feasible in the big city.In addition, the influx of people who move to cities for shorter periods for work reasons is exacerbating the housing shortage.

There are two groups of people in particular who are interested in buying a property in the countryside. On the one hand, young families, on the other hand, people close to retirement age. Often these are financial reasons, in particular due to drastic rent increases. Buying a property in the countryside is also more feasible from a financial point of view. On the other hand, family growth is the reason to move to the countryside, because the move in the city into a larger apartment is not feasible due to the tight situation.

On closer inspection, it's mostly the surrounding areas around these seven major cities that benefit. The example of hamburg shows that z. B. In 2014, a total of nearly 80.000 people moved to schleswig-holstein or lower saxony. However, fewer than 20,000 people from these two federal states moved to.000 to the city. The fact that hamburg is nevertheless growing is primarily due to the influx of foreigners.

Property in the countryside: A trend is returning

In their assessment, the statisticians refer to city or region-specific data. Rural exodus cycles that also occurred in the past. In other words, every trend is sure to be followed at some point by a countertrend. While in the 1950s z. B. The inner cities were deserted in the 1970s and 1980s because no one wanted to live in the noise and stench of the city centers.

Nevertheless, there are clear differences. Whereas in the 1980s the infrastructure in the countryside was intact almost everywhere, today it can be seen that many shopping facilities, as well as services, are difficult to find in the countryside. This is why it is currently the outlying areas of the major cities in particular that are benefiting from this trend. This also means, however, that in these so-called fat belts of the cities the purchase prices for real estate are currently increasing. If you are considering owning your own property near a city, you should make a decision quickly. Because the more favorable prices in comparison to the conurbation could soon also be history due to the demand.

A recent study by the berlin institute for population and development and the wustenrot foundation indicates that mainly young families with parents in the 30 to 49 age group are moving to the countryside. So-called professional migrants between the ages of 25 and 29 are also increasingly settling in villages and small towns. On the other hand, young people between the ages of 18 and 24 continue to leave rural areas in large numbers. They are moving primarily to large cities such as leipzig, munster or berlin, where universities and other educational opportunities exist. According to the available data, this trend has already been emerging since 2017.

For the analysis, average annual total migration balances per thousand residents from 2008 to 2010 were reportedly compared to those from 2018 to 2020. According to the study, around two out of three rural communities in germany recently achieved migration gains. A decade earlier, this had only been the case in around one in four rural communities.

Home office and digitalization make rural living attractive

Today, even remote regions are gaining residents through relocation, and the development between east and west is also leveling out. Since 2014, a similar number of people have been moving from the east to the west each year as vice versa. In the eastern and western german states, a similar number of rural communities are now experiencing migration gains, at 62 and 64 percent respectively.

As reasons for the growing interest in rural life in germany, the berlin study cites.Institutes for population the tight housing supply and rising real estate prices that are currently dampening the influx into major cities. This affects many young families in particular. Even people just starting out in their careers often find it difficult to find a suitable city apartment near their employer today. In addition, the proximity of the home to the employer is no longer necessary in many cases. In addition, the digitization of rural areas has increased decisively in the last 10 years.

Because digitization makes many professions "compatible with the land. Many jobs, especially in creative and knowledge-intensive industries, can now be done from a rural home office – also boosted by the corona pandemic. Last but not least, the corona pandemic forced many companies to allow their employees to work in a home office. The corona pandemic seems to have given the new desire to live in the countryside a powerful boost.

Construction financing for a property in the countryside

Of course, it is always the location that determines the financing options. If you want to move to a suburb rather than to the flat countryside, there should be no obstacles to financing if you have the right credit rating, since the prospects of appreciation also play a role in construction financing. Whereas in the past banks were cautious about providing construction financing for a new building or buying a property in the countryside because they feared a negative development of the value during the financing, today value stability can also be expected in the countryside.

This means that banks are now also forecasting positive prospects. If the prospective borrower also has approx. 20 percent equity and a good credit rating, nothing stands in the way of financing. An essential criterion is that the building loan is fully repaid before retirement age.

Before making a final decision, you should always take a look at the infrastructure of the rural area; it's not just about shopping facilities, medical care, the density of craftsmen and transport links should also play a role – regardless of whether you're a young family or a pensioner looking for the idyllic countryside. These factors are also closely related to the potential for increasing the value of rural real estate.

Real estate in the countryside as an old-age security

Buying property in the countryside is therefore also popular with people aged 50-plus. Many rural regions – especially those with a high recreational or. Leisure value – show an increase in demand from city dwellers for purchase properties. Usually not only the leisure value is in the focus of the interest but also the consideration to use the real estate in the pension age as food center.

From the point of view of construction financing, the financial basis of the prospective buyer is also of interest here, as well as the age, which then determines the possible duration of financing until retirement age. In particular, however, the motivation to imagine living in the country with all its advantages and disadvantages is something everyone should consider for themselves. If you like to live in and with nature, a property in the countryside can be a smart investment that enriches your life in the long term.

Home office - the new trend

Home office becomes the standard in the working world. Therefore, home office also changes the search for real estate, since a separate workspace is necessary.