Study: Real estate prices fall by almost seven percent
According to data from real estate banks, prices for houses and apartments are continuing to fall, but rents are still rising. According to data from the Association of German Pfandbrief Banks (VDP), residential real estate was on average 6.3 percent cheaper in the third quarter than a year earlier. This was reported on Friday by the Berlin-based association, which represents Deutsche Bank, Commerzbank, Landesbanken and large savings banks, among others.
In Munich, apartment buildings and condominiums cost 6.8 percent less to buy than in the third quarter of 2022, but rents were 5.2 percent more expensive. The Immobilienverband Deutschland Süd real estate association had also reported falling purchase prices and rising rents in Munich and other Bavarian cities in recent months. The real estate price index is based on data on transactions from more than 700 banks and is more meaningful than analyses based solely on advertisements. This is because property sales are negotiated and deviations from the asking price are common.
Despite the falling real estate prices, many people continue to find living in expensive cities appealing due to its amenities. In contrast, the increasing living costs due to rising rents pose a challenge for many residents.
Source: www.dpa.com
