Even the most buoyant expectations have been exceeded in some cases in recent times. Ultra-low financing conditions and demand outpacing construction have led to increasingly optimistic price expectations among buyers. Indeed, the property market has long been supported by one major buttress in particular: central banks. The main reason for the exorbitant increases in home prices thus lies elsewhere. However, if urban residential rents are used as a benchmark, the supposed scarcity effect evaporates: rents have only risen hand in hand with local wages over the same period. The strong real estate boom of the last decade underlines this credo once again. Thanks to urbanization, this means property prices should rise significantly in the long run-more or less summing up the common narrative on the value growth of urban homes. And by its very nature, supply cannot be expanded at will in the short term. In many cities, there is not enough housing supply.
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