Inflation and rising interest rates have caused prices in urban areas to plummet since mid-2022. According to a research project, this is about six percent in Berlin. And other cities?
According to a research project, real estate prices in large German cities have collapsed by up to 20 percent since mid-2022, adjusted for inflation. This was determined by the new GREIX database, which was presented in Berlin on Monday. In the first quarter of 2023 alone, the purchase prices for houses, apartments or land in Berlin fell by six percent compared to the peak in 2022, in Frankfurt the minus was twelve and in Hamburg nine percent.
The new database – the German Real Estate Index, in short: GREIX – is also intended to give private individuals a free insight into price developments in 18 cities. “The regional real estate price database makes an important contribution to the transparency of real estate prices in Germany’s largest cities,” explained Building Minister Klara Geywitz (SPD). This can help to determine the value of your own property or to compare prices when buying.
Information from the so-called expert committees from the past 60 years was fed into the database. According to the developers at the University of Bonn, long-term trends can be identified from this. Real estate prices continued to rise before German reunification, then plummeted until a new real estate boom began in 2010. Prices have collapsed since mid-2022 due to inflation and rising interest rates.
The new instrument was developed by the excellence cluster ECONtribute at the University of Bonn.
Link to the GREIX database