Second homes in the mountains or on the coast were in great demand even before the Corona crisis. The pandemic is now increasing the desire to distance yourself from your own holiday property. Not only the classic holiday areas benefit from this.
Frankfurt / Main (dpa) – A house by the lake, an apartment with a sea view or a retreat in the mountains: vacation properties were the dream of many people long before the Corona crisis – probably because it remained unfulfilled for many for lack of money.
The second home or the weekend cottage promise distance from everyday life, peace and quiet from the narrowness of the city and more greenery. This is all the more in demand in Corona times.
“The demand for vacation properties is definitely higher than it was before the crisis,” says Daniel Ritter, managing partner at the broker von Poll. “The desire to escape from the city into nature and to be able to avoid contacts has increased even further.” The prices for the coveted holiday apartments on the North Sea islands, for example, which already cost 10,000 euros per square meter and more before the pandemic, rose again by around 20 percent in 2020. The focus is on own use, not renting.
Demand continues to rise in holiday regions such as the North and Baltic Seas, the Alps and the Black Forest, says Ritter. “In the Corona crisis, however, regions that are overshadowed by the top destinations, such as the Eifel, Moselle, Spreewald and Mecklenburg Lake District, are also becoming more popular.” They benefit from the fact that they are close to metropolises such as Frankfurt, Düsseldorf, Cologne and Berlin. In general, accessibility is an issue in the pandemic: “The desire to travel by air is not so great,” says Ritter. Corona strengthens the domestic market.
The real estate agent Engel & Völkers is also showing more interest in holiday properties in Germany. “The demand on the North and Baltic Sea coasts as well as in the Alpine regions and on the southern German lakes has increased significantly as a result of the corona pandemic,” says board member Kai Enders. This was confirmed by rising prices in sales and rentals, and domestic vacations are booming.
Quiet, remote small towns and locations that offer enough space for distance and yet good connections are particularly popular – for example to medical facilities and fast internet, according to Enders.
But if you want to buy a holiday apartment in a popular holiday area, you have to bring a lot of money with you. Engel & Völkers registers the highest prices for holiday homes on Sylt. On the fashionable North Sea island, holiday apartments in a very good location cost up to 20,000 euros per square meter. This level will also be achieved on Norderney as well as on Tegernsee and in the Starnberg five-lake region, according to the agent.
In addition, real estate in the price segment of around 150,000 euros is also popular. For example, customers from the city were very interested in properties in Schleswig Holstein that they could buy with equity capital without a loan. It gets cheaper in the hinterland: “If the water is no longer visible and you accept a few minutes’ drive, you have a completely different price level,” says Ritter.
In Corona times, however, holiday apartments are no longer only in demand for holidays. “We are observing the trend that holiday homes and second homes are also increasingly being used for mobile work,” says Engel & Völkers. The pandemic with the cancellation of business trips and physical customer appointments makes it possible.
However, there are some pitfalls when buying holiday apartments, says Mathias Wahsenak, managing director of Landesbausparkassen Immobilien GmbH in Potsdam. It sells second homes, for example on the Baltic Sea. In principle, not all holiday properties should be rented out, explains Wahsenak. And the top locations on the coast are stable in value, but also expensive. That depresses the return. “It’s only worthwhile to a limited extent as a capital investment, more as a money-park.”
Many two- and three-room apartments and holiday homes are sold, some of which are used by the company and some are rented out. In view of the low interest rates and the booming vacation in Germany, the offer is scarce. Older existing properties are available from around EUR 2,000 per square meter, while new buildings start at around EUR 4,000. The administrative costs, which account for 20 to 30 percent of rental income, should not be underestimated. In order for the investment to pay off, the holiday home should be rented for 120 to 150 days a year.
It becomes more complicated with holiday apartments abroad, for example on the Mediterranean. “Legal security, the notarization of the purchase contract, our land registry and building rights are not always available abroad”. A hobby can be worth buying, but it’s best to have an expert by your side. “If you go abroad on your own, you can be in for a nasty surprise.”
Washenak also advises visiting the holiday region outside of the holiday season. Because the dream of a second home does not always hold up against reality. “Fresh owners are often surprised that many shops, bars and restaurants are not open out of season,” says Washenak. “If there is no more light in the place and everything is barricaded, sadness can quickly spread.”
© dpa-infocom, dpa: 210202-99-264372 / 2
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