The German Real Estate Association (IVD) has taken a closer look at rental price trends in the retail sector and identified four developments. Firstly: Due to the coronavirus pandemic, there are many vacant retail spaces, especially in city centers. Secondly, particularly in Germany's seven largest cities, rents have fallen more sharply the higher they were previously.
Thirdly, small and medium-sized towns are in a better position than large cities, as they benefit from more stable retail rents. Fourthly: Due to the vacancy rate of many retail properties, the IVD assumes that they will be converted into residential space in the future, especially in small and medium-sized towns. IVD President Jürgen Michael Schick is also making demands on politicians in this regard.
"Landlords must be enabled to convert retail spaces whose layout and lighting are suitable for residential use accordingly," says the IVD President. At the moment, however, building regulations are one of the obstacles to this. According to Jürgen Michael Schick, the federal states should create exceptions in favor of residential space. Interested parties can find further information at ivd.net.
Source: ivd.net
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