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What's happening in real estate prices in Germany?

What is happening in real estate prices in Germany?0

The situation is ambiguous

How have real estate prices in Germany changed recently? This question is of interest to potential real estate buyers, those who seek to invest their money in the most profitable way.

According to data for 2023, prices for real estate in almost a hundred regions of Germany have decreased. And this decrease turned out to be significant compared to the previous year 2022.

Where is the decline in real estate prices most noticeable? Experts highlight the largest cities in the country. Real estate prices have become more affordable in Berlin, Cologne, Munich, and Hamburg. In 2023, housing prices fell by thirteen percent compared to a year earlier.

But there are also cities in Germany where prices have fallen even more than indicated above. In Stuttgart, the decrease was sixteen percent at the end of 2023. And this happened in just twelve months!

In large cities, this picture is most evident. But small towns and villages have not been spared from the decrease in real estate prices.

There are several reasons for this decrease in real estate prices. First of all, this is an increase in mortgage lending rates. And the decline in demand on the market had a significant impact on everything that was happening.

Housing in Germany has become cheaper. But even despite this, it still remains inaccessible to most people. The most expensive houses and apartments in Hamburg and Munich. And sometimes it is impossible to name arguments that somehow explain such a high cost of real estate.

It is unknown how much further housing prices in Germany will fall. But the situation on the real estate market is extremely ambiguous.