Prices for home ownership
Jumps in metropolises: real estate becomes significantly more expensive
The days of falling prices are over: If you want to buy an apartment or a house, you have to dig deeper into your pocket again. The prices are particularly attracted to big cities.
End of the drop in prices: residential properties in Germany have been more expensive within twelve months as it has not been since mid -2022. This is shown by the Greix real estate index, which is based on information from expert committees and is published by the Institute for the World Economy in Kiel (IFW). Accordingly, in the first quarter, particularly condominiums in metropolises such as Cologne, Berlin and Stuttgart were more expensive after real estate prices had fallen vigorously with the end of years of booming in many places.
At the beginning of the year, the IFW was 3.2 percent more expensive than in the first quarter of 2024. Single -family houses were 9.7 percent and apartment buildings by 8.7 percent. “In the year comparison, the current figures have marked the largest price growth since mid -2022,” writes the institute. The market gains on driving: The number of closed transactions is almost a third of the previous year.
“Waiting has an end,” says IFW real estate market expert Jonas Zdrzalek. “Anyone who wants to buy has apparently come to terms with the new circumstances – and speculates that the real estate market has reached its low point for the time being.”
For the previous quarter, the final quarter 2024, prices for condominiums rose by 1.0 percent. Multi -family houses were sold 1.1 percent more expensive, prices for single -family houses stagnated (plus 0.1 percent).
Price jumps in metropolises
Compared to the previous quarter, prices for condominiums climbed the most in Cologne (plus 3.4 percent), Stuttgart (2.1) and Berlin (1.7). The climbs in Düsseldorf (1.3 percent), Frankfurt (0.7) and Leipzig (0.6) were more moderate. There were no data for Hamburg and Munich.
For the index, a notarized sales prices of the expert committees are evaluated according to scientific standards for 21 cities and counties. Even outside the large metropolises, prices rose almost everywhere – especially in Karlsruhe (plus 3.8 percent) and Duisburg (plus 3.2 percent). There was a slight decline in Dresden.
Relaxation after a historical burglary
Housing properties have become significantly cheaper since mid -2022 – the highlight of the years of booming. The main reason was significantly increased interest rates, making loans more expensive. Many people could no longer afford their own four walls, sellers had to reduce their prices. Real estate prices have stabilized since last summer. According to the Federal Statistical Office, apartments and houses had already been slightly expensive in the final quarter of 2024.
Compared to the price-low stalls, the catch-up movement in the big cities is the most powerful, the IFW is now writing. Overall, the prices for condominiums would be around ten percent below their highs. “Whether the price increases will continue at the same pace depends on the economic and monetary environment,” says Zdrzalek.
Do higher construction interest rates stop recovery?
With the prospect of billions in debt of the Federal Federation and Infrastructure, the capital market interest rates have increased vigorously and thus also the construction interest. According to the Frankfurt FMH financial advice, around 3.6 percent interest is due for financing with a ten -year term – six months ago it was 3.3 percent. This makes loans for real estate buyers who often have to finance six -digit amounts. Observers expect a stress test for the real estate market.
dpa
Source: Stern
