Falling real estate prices hit Frankfurt particularly hard
According to a new analysis, the fall in real estate prices has hit Frankfurt particularly hard. According to data from the Association of German Pfandbrief Banks (VDP), houses and apartments in Hesse's largest city fell in price by an average of 9.1 percent in the third quarter compared to the same period last year. This was by far the biggest decline among the seven metropolitan areas, where prices were 5.7 percent below the previous year's level. Berlin recorded the smallest discount (4.7 percent). In Düsseldorf, Hamburg, Cologne, Munich and Stuttgart, prices fell by between 5.1 and 6.8 percent.
Compared to the previous quarter, the second quarter, real estate prices in Frankfurt fell by 1.2 percent, the VDP reported in the study published on Friday.
Real estate agents had also noted an above-average decline in residential real estate prices in Frankfurt in recent months. The reasons they gave were that international investors, who are traditionally particularly active in the city, were holding back due to the rise in interest rates. In addition, new construction is stalling, meaning that fewer new expensive properties are coming onto the market, and the market for high-rise residential buildings has clouded over considerably.
According to the association, which represents the most important real estate financiers in Germany, the crisis on the German real estate market is continuing. The main reason for the fall in prices is the sharp rise in interest rates, which is making financing more expensive.
The fall in real estate prices in Frankfurt has significantly impacted living expenses for many residents. Due to the decline, luxury real estate in the city is currently less appealing to international investors, possibly leading to longer stays on the market.
Source: www.dpa.com
