Living - Falling real estate prices - sharpest decline since 2000
The decline in residential real estate prices accelerated in the third quarter. According to the Federal Statistical Office in Wiesbaden, apartments and houses became 10.2 percent cheaper on average compared to the same period last year.
This was the sharpest fall since the time series began in 2000. A decline of 9.6% was recorded in the second quarter and 6.8% at the beginning of the year - both compared to the same period last year.
Compared to the second quarter of 2023, the price of residential properties fell by 1.4%. Since peaking in the second quarter of 2022, prices have been falling compared to the previous quarter.
The main reason for the fall in prices on the real estate market is the sharp rise in interest rates, which have made loans much more expensive. Many people can no longer or no longer want to afford their own four walls. The banks' new business with real estate loans has collapsed.
Prices have fallen on average in both cities and rural regions. In the major cities of Berlin, Hamburg, Munich, Cologne, Frankfurt am Main, Stuttgart and Düsseldorf, the price of detached and semi-detached houses fell by 12.7 percent, while buyers had to pay an average of 9.1 percent less for apartments than a year earlier.
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The real estate market in Germany is experiencing a significant price decline, with the sharpest drop in residential property prices since 2000. According to Destatis in Wiesbaden, the average price of apartments and houses decreased by 10.2% in the third quarter. This decline in prices is primarily attributed to the significant increase in interest rates, making home loans more expensive and unaffordable for many individuals. Consequently, the new business in real estate loans has significantly decreased. This price decline is not exclusive to cities, as prices have also decreased in rural regions. For instance, the price of detached and semi-detached houses fell by 12.7% in major cities like Berlin, Hamburg, Munich, and others.
Source: www.stern.de
