Image: REUTERS
Residential properties have become significantly cheaper in Germany. Prices fell by an average of 9.9 percent from April to June compared to the same period last year. This was announced by the Federal Statistical Office. It was the sharpest decline since the series began in 2000.
Compared to the first quarter of 2023, residential properties were 1.5 percent cheaper, but the decline was smaller than in the previous two quarters of minus 2.9 and minus 5.1 percent. The key reason for the falling purchase prices is likely to be lower demand as a result of increased financing costs and persistently high inflation.
Prices fell in both cities and rural areas. The largest declines – albeit from a high level – occurred in the top 7 metropolitan regions of Berlin, Hamburg, Munich, Cologne, Frankfurt am Main, Stuttgart and Düsseldorf. Here the prices for single and two-family houses fell by 12.6 percent, and apartments had to be paid 9.8 percent less than a year before.
In rural regions, condominiums were 7.0 percent cheaper than in the second quarter of 2022, and single- and two-family homes were 8.1 percent cheaper. According to a study by DZ Bank, real estate prices are likely to fall between four and six percent for the year as a whole – given difficult conditions such as rising interest rates and expensive materials.
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Source: Nachrichten
