It’s not only speculation, it’s also because some locations are a lot more wanted by many people to live there: right next to a big park, walkable neighbourhood, city amenities nearby but few city problems, no highway audible when sleeping with open window et cetera et cetera. More people want to live in prime locations than prime location housing is available.
The big scam are the insane prices for run down shoebox-apartments in shitty locations.
Location matters though. It wouldn’t make sense for a house to cost as much as it does to make. Though obviously prices have become completely detached from reality.
The real estate market. The value of labour and materials necessary to build a house is about 30 to 40 thousand euros. Everything else is speculation.
It’s not only speculation, it’s also because some locations are a lot more wanted by many people to live there: right next to a big park, walkable neighbourhood, city amenities nearby but few city problems, no highway audible when sleeping with open window et cetera et cetera. More people want to live in prime locations than prime location housing is available.
The big scam are the insane prices for run down shoebox-apartments in shitty locations.
Location matters though. It wouldn’t make sense for a house to cost as much as it does to make. Though obviously prices have become completely detached from reality.