Rent or buy in Karlsruhe. Beautiful period buildings, detached houses and villas. Karlsruhe offers you everything! An expert tells everything important about Karlsruhe in his interview with FIV Magazine. Should you rather buy and rent? How good are the returns in Karlsruhe and its surroundings? And which districts are the most beautiful in Karlsruhe to live in? This and more you will learn here in this article. More realtor recommendations for Karlsruhe and the surrounding area. Also in Germany in our article: Real Estate Agents Germany
Rent, buy, live in Karlsruhe
A good start in the real estate world is always the purchase of the first apartment. Michael Pellinghoff explains in his interview with FIV Magazine his experiences with real estate in a good B-location. The yield here depends on the type of house or apartment. For example, micro-apartments have different exploitation possibilities than single-family houses. The location is also decisive in pricing, whether in Neureut, Durchlach and other districts such as Weststadt or Knielingen.
Here is Karlsruhe in Germany:
Karlsruhe up close:
Rentals: City districts & real estate market
After the successful purchase of the property and the execution of the purchase contract, you naturally want to furnish your newly acquired property according to your individual needs. From the living room furnishings, to the garden design, nothing stands in their way of your creative imagination.
Buy: Yield & Investment
In our interview, you will learn everything about real estate and returns in Karlsruhe. Should you buy a property in Karlsruhe or is it more worthwhile to buy nearby, for example in Bruchsal or Ettlingen?
Interview about real estate in Karlsruhe
The first condominium or real estate as an investment? In this interview you will learn the most important tips & tricks. Buy, rent, live in Karlsruhe but also tips for capital investments. We ask the questions, he provides the answers.
Pell-Rich Immobilien: Interview with real estate agent
FIV: Before we go into Karlsruhe and its real estate market and your recommendations for tenants and buyers, we would like to know a little more about your agency Pell-Rich Immobilien. Could you briefly summarize for our readers what your agency does and what you specialize in?
Michael Pellinghoff: With pleasure. We are a real estate agency founded in 2014 and based in Karlsruhe-Neureut. We specialize in the sale and rental of residential and commercial properties. In the course of the company’s history, my business partner Thomas Gierich and I have also successfully completed a degree as certified real estate appraisers. Our business field has thus grown to include valuations and also for market value appraisals for real estate.
Furthermore, we at Pell-Rich Living concentrate on renting furnished apartments in the regions of Karlsruhe, Stuttgart and Heilbronn. Here, we acquire properties ourselves (often in need of renovation), fully furnish them, retain ownership and then rent them out to companies as well as private individuals.
In 2022, we will additionally focus on the brokerage of foreign real estate (Dubai and Spain). Here we work together with qualified developers. The mediation of new construction projects has also become our steppe horse, here we also create renderings and visualizations.
Favorite properties in Karlsruhe: Industrial properties
FIV: As a real estate agent in Karlsruhe, which properties do you personally prefer to broker?
Michael Pellinghoff: Residential property purchase, and here also preferably owner-occupied properties. Here the demand is the highest and the mediation is often very fast within a week. Finally, we also enjoy properties that are more difficult to broker, where the buyer’s market is simply smaller, such as industrial properties. Also here we could already write positive references.
Beautiful detached house in Neureut:
Districts with a future: Durlach or Rüppurr
FIV: Neighborhoods for Singles, Families & Co. – For those who don’t live in Karlsruhe yet and want to move to Karlsruhe, which neighborhoods have a future? Where should you move to in Karlsruhe if you want to live nicely?
Michael Pellinghoff: In the meantime, all districts are actually in demand. We are currently drafting our own market report in cooperation with the iiB Institut Dr. Hettenbach. This will be available shortly at: www.pell-rich.de/marktbericht-karlsruhe
Inquiries, and thus prices, are highest in districts near the autobahn, as these are the districts with the best infrastructure connections. Durlach and Rüppurr in particular stand out here in Karlsruhe. The Weststadt district, with its beautiful old buildings, is also very much in demand.
The northern districts (Neureut, Knielingen) are, in my opinion, particularly well suited for families, since the connection to Karlsruhe city center is very good, but there are also a lot of green spaces. In addition, you can reach the Rhine and the quarry ponds very quickly, which is of course very nice in summer, especially for families.
Development of the real estate market in the city
FIV: Rents are a big topic, all over Germany. How has the real estate market and rental prices in Karlsruhe developed in recent years and how will they develop in the future?
Michael Pellinghoff: See also in our market report. The rental inquiries in Karlsruhe are enormous and with it also constantly rising prices. In Karlsruhe, we also have a qualified rent index that can be obtained from the city of Karlsruhe and online.
In my opinion, prices will remain stable in the future and will continue to rise for new properties in 2021/22 in line with the increase in construction costs. Existing properties, especially those with an enormously high demand (including one- and two-bedroom apartments), will also continue to rise in my opinion.
Broker tips for real estate financing: financing & interest rates
FIV: In Germany, more people rent than buy. What would you recommend to a young couple or even a single person, renting or buying in Karlsruhe?
Michael Pellinghoff: If equity is available and financing is possible, then definitely the purchase of real estate. Negative interest rates on the accounts and inflation favor the decision here. Money on the daily account does not bring really what. If you look at the price development for apartments and single-family houses, i.e. objects that are primarily used by the owner, the development after the Second World War (even with some slumps such as 1998 or 2008 triggered by crises) is steadily increasing.
Thus, inflation can be counteracted here and property can be created.
Garden of a family house in Karlsruhe:
Real estate as an investment: districts and infrastructure
FIV: Karlsruhe districts for real estate investment – we come still to real estates as capital investment in Karlsruhe, for those, which want to buy and letting. If our*r Leser*in for the purchase, with following letting, decides: Which 2 districts or even satellites around Karlsruhe, would you recommend to a buyer for their capital investment in Karlsruhe? In your opinion as an expert, where do the most future opportunities lie?
Michael Pellinghoff: We ourselves have purchased properties in the peripheral districts with good connections (Neureut, Knielingen, Hagsfeld), because it is still possible to buy here somewhat more cheaply than in the more expensive parts of the city (viewed in terms of the comparative price per m²), but renting is problem-free due to the high level of inquiries.
Even peripheral areas such as Stutensee (especially Blankenloch and Büchig due to the S-Bahn connection) as well as Eggenstein-Leopoldshafen or Linkenheim (in the north) or Ettlingen (in the south) are becoming increasingly popular and attracting new residents, which is why prices will continue to rise here.
As an investment, the expected or actually agreed net cold rent should be considered in relation to the purchase price and the incidental purchase costs incurred. Here, too, you should think about the price at which you are buying. If I am actually offered a favorable price at the current market and have high tenant expectations, I recommend all districts of Karlsruhe as well as outlying areas that are properly connected (S-Bahn, DB or highway proximity).
Neighborhoods with opportunities for the future:
Types of real estate with a future: apartments for rent
FIV: In your opinion, what type of real estate has a future in Karlsruhe, what should one invest in? Small, large, existing, new construction?
Michael Pellinghoff: Small and existing. According to Statista, the population forecast for southern Germany shows an increase in one- and two-bedroom households by 2050, i.e. more single households or small households. In the current market, we are also experiencing a strong increase in demand for the above-mentioned types of real estate. Karlsruhe is also a student city.
Likewise, numerous employers such as KIT, Aluplast, Siemens, Bosch, etc. can be found here, where there are also many commuter employees who also prefer smaller properties for rent, which is why the demand for this type of property is also so high. As a capital investor, the highest m² prices can therefore be achieved here.
Selling in Karlsruhe: marketing and price adjustment
FIV: Finally, one more question: You had mentioned the typical mistakes buying a property. Many buy, but some also want to sell. As an experienced real estate agent in Karlsruhe, what tips can you give to those who are selling a property for the first time? What are the first steps and how do you successfully sell a property in Karlsruhe?
Michael Pellinghoff: If I should sell a real estate for the first time, I advise to consult a specialist, who renders once achievements for the salesman (document preparation, visualizations, pictures, the appropriate marketing, energy document of identification production and above all the correct price evaluation) in addition, with the buyer factually can negotiate.
This brings many advantages. Above all, the “right” price is decisive in marketing. If I price the property too high, I will have an unnecessarily long marketing period with many negotiations and price adjustments. Even at the current market, properties can still be “burned” on the market.
If the price is too low, I forgo potential sales proceeds.
A broker is a m.E. a highly specialized marketing agency specialized in real estate marketing with the necessary know-how.
The brokerage fee borne by the seller (3.57% of the sales price recorded in the purchase contract) usually already pays for itself with the higher value that I can achieve with a very good broker through appropriate marketing measures and also from the larger distributor (social networks, homepage as well as in all common real estate portals) on the market.
Thanks to Pell-Rich Immobilien (Michael Pellinghoff) for the interview!
Buying your first apartment: Owner occupation or capital investment
You want to realize the dream of the first own property, but do not know where to start? Learn everything about the first home and the most important steps in our article.
Rent, buy, live in Karlsruhe
For the realization of their dream of the first home, whether you rent or buy, and how to achieve the maximum return in Karlsruhe learn in our article about realtors in Karlsruhe.