However, as new building projects also focus
on these sub-markets, positive demand effects will be diluted. Because of
existing demand overhangs, disadvantages are emerging on the Frankfurt
residential property market from a potential relocation of employees.
Price growth and the shortage of housing will remain elevated for the foreseeable
future. An additional 5,000 homes and a correspondingly elevated housing
shortage are likely to drive prices up by more than EUR 100 per m2. While
purchase prices remain affordable thanks to low interest rates, they are strongly
dependent on future interest rate developments.