Inefficient property pricing is the consequence of a lack of transparency in supply and demand:
- Short timeframe for bringing together vendor and buyer
- Number of contracting parties on the market
- Artificial shortage due to opaque purchasing restrictions
- Acquisition of real estate by foreigners (Lex Koller, also Lex F. [Valuation Act])
- Agricultural real estate / acquisition solely by qualified independent farmers
- Maximum price is rarely obtained due to limited number of contracting parties
- Artificial shortage due to opaque purchasing restrictions
- Lack of comparability and as a result no pricing as is the case on stock markets
Further Information
- Transparency through property portals
- Property portals increasingly act as intermediaries between supplies and demanders.
- Internet publications of property for sale and property wanted, which anyone can access, create a certain degree of transparency nowadays; even though desirable properties and in particular great properties are not placed on the net at all, but are brokered or sold directly within the circle of acquaintances or networkers.
- Property Portals
