Residential real estate prices have continued to rise, but the statisticians see “a slight slowdown in momentum”. The trend towards working from home is also causing a new development.
Houses and apartments in Germany have become more expensive by more than ten percent for the fourth quarter in a row. However, the price increase appears to be slowing down somewhat.
In the period from January to March 2022, prices for residential real estate rose by an average of 12.0 percent compared to the same period last year, according to preliminary figures from the Federal Statistical Office. The rate of increase within one year was over ten percent for the fourth time in a row.
Compared to the previous quarter, apartments and detached and semi-detached houses rose by an average of 0.8 percent. “This indicates a slight weakening of the dynamics,” said the Wiesbaden authority. In the third quarter of 2021, prices for residential real estate rose by 4.1 percent and in the fourth quarter of 2021 by 3.1 percent compared to the respective previous quarter.
Demand is high, supply scarce. The trend towards working from home during the Corona crisis has also boosted interest in living space in the country. In view of rising building interest rates, expensive building materials and delivery bottlenecks, some experts expect the real estate boom in Germany to slow down after more than ten years. Especially because of rising interest rates, more and more people could no longer afford to buy an apartment or a house.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
