Real estate market - Affordable single-family houses in Saarland
The prices of single-family homes and condominiums in Saarland have seen a considerable dip as revealed in a study from last year. The decrease was anywhere between 5-8% across the region, over 11% in Saarbrucken, as announced by the Real Estate Association Germany (IVD) West on a Friday. The shift in prices was attributed to a diminished buyer interest. Yet, it is believed that the rock-bottom pricing has been achieved, and the association anticipates little to no change in prices in the upcoming months.
Uncertainty arose from high construction interest rates and the Building Energy Act, which led to reservations about purchasing. Adding to the woes, the new construction sector saw a temporary shutdown due to a sharp rise in material costs, exacerbating the detrimental impact on sales prices.
Almost all municipalities in Saarland now offer homes at more affordable rates. The priciest cities in Saarland include Saarbrucken, Saarlouis, and Perl, with home prices for a detached house ranging from 420,000 to 520,000 Euro. In contrast, Homburg offers comparable properties at 280,000 Euro in a desired location. In Bexbach, Ottweiler, and Wadern, the prices were reportedly under 200,000 Euro.
Meanwhile, rental prices for both residential and commercial real estate in Saarland experienced a modest hike despite the overall decline in property values. The IVD West Saarland Housing and Commercial Real Estate Price Index 2024 showed an overall increase on average. Neunkirchen and St. Ingbert experienced a rise ranging from 6-10%, while Saarbrucken and Saarlouis witnessed an increase of 2-3%. The price index encompasses real estate costs in 25 cities and municipalities over the period of early April 2023 to March 2024.
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The construction industry in Saarland has been affected by high interest rates and material costs, resulting in a temporary shutdown of new constructions. Despite this, the construction of affordable single-family houses continues in various municipalities, such as Saarbrucken, Saarlouis, and Perl, with purchase prices ranging from 420,000 to 520,000 Euro for a detached house. In contrast, towns like Homburg offer comparable properties at 280,000 Euro. The available housing market in Saarlouis and other areas of Saarland has seen a decrease in prices due to diminished buyer interest, as reported by the Real Estate Association Germany (IVD) West. This decline in the construction industry and housing market could potentially lead to an increase in condominium sales in the future.
