Reside
Banks: Real estate prices rise – but not a new boom
The price slump in the real estate market is over. If you want to buy an apartment or house, you have to pay a little more than a year ago. People who are looking for a rental apartment are harder.
Real estate buyers have to dig deeper again, but from the perspective of banks, but initially do not fear rapid price increases. In the fourth quarter of 2024, houses and apartments were an average of 2.1 percent more expensive than in the same period last year, new figures from the Association of German Pfandbrief Banks (VDP) show. Measured in the third quarter, prices rose by 0.7 percent.
“Real estate prices have stabilized, but a new boom as in times of low interest rates are not foreseeable,” said managing director Jens Tolckmitt of the German Press Agency. “For this, the interest would have to fall significantly.”
After years of booming, real estate has noticeably discount since the highlight of 2022. The main reason was increased interest rates that made loans more expensive. Since the interest rates have recently fallen a little again, consumers again use real estate loans. The prices for apartments and houses have been increasing slightly for several quarters. Even at the crisis -related market for commercial properties, there was again growth at the end of 2024.
The price increase for apartment buildings was particularly large with a 2.9 percent within a year. This shows that “some large investors are returning to the market,” said Tolckmitt. In the case of single -family houses and condominiums, on the other hand, prices only increased by 1.2 percent.
Price increase in metropolises larger
In the metropolises of Berlin, Hamburg, Munich, Cologne, Frankfurt, Düsseldorf and Stuttgart, residential real estate made 2.3 percent measured in the final quarter of 2023 and thus more than in the national average, according to the VDP. The third quarter of 2024 went up 0.9 percent.
The association represents around 50 real estate financiers, including Deutsche Bank, Commerzbank, large savings banks, Landesbanken and special financiers. It regularly presents real estate data based on transactions of more than 700 banks.
Unlike the purchase prices, rents grew vigorously. The new contract rents in apartment buildings rose by 4.6 percent within a -year -average and 3.9 percent in the seven metropolises within a year. “An end to the rental staircase in the sought -after cities is not to be expected,” said Tolckmitt with a view to the high demand and the much too scarce offer.
“Many people can no longer afford residential property, because only moderately fallen purchase prices meet increased interest rates.” Therefore, many flocked to the rental market, which still increases the pressure there.
“Need more generous funding”
Only new buildings on a large style help against a lack of housing, said Tolckmitt. “We need more generous and, above all, more reliable support measures for house builders.” In addition, a new federal government must significantly reduce the building regulations. “Every stone has to be turned over.”
“Another effective means of bringing more people to home would be a reduction in real estate transfer tax,” said Tolckmitt. The fact that housing policy in the Bundestag election campaign, if at all, only plays a supporting role is “completely incomprehensible”.
dpa
Source: Stern
