The notable surge in interest for German property becomes evident.
Lately, reduced interest rates from the European Central Bank have sparked a surge in interest for German real estate, keeping property purchase prices stable. After a brief pause during the summer, looking for additional rate adjustments, buyer interest has significantly increased since September, as per ImmoScout24's reports on Tuesday.
According to ImmoScout24's CEO, Gesa Crockford, the interest rate cuts in June and September have added extra momentum. She commented, "Property prices are stable, and we're already observing a positive trend in major urban areas." Market players understand, "that this is the ideal moment to acquire properties before potential price hikes."
An average increase of 1.5% and 0.2% were witnessed for existing and new apartments' offer prices respectively, from June to September, compared to the previous quarter.
ImmoScout24 pointed out that German apartment seekers are grappling with intense competition, rising rents, and higher additional expenses. The demand for property is notably increasing in smaller major and mid-sized cities. Although rents didn't surge as sharply in the summer as in past quarters, there's been a steady increase. "The rental market continues to be tense," said Crockford. "In the five largest cities, rents have risen ten times more than property prices in the past decade. This is most noticeable in Berlin."
The real estate market in Germany has seen a notable increase in buyer interest due to the interest rate cuts, with property purchase prices remaining stable. In light of this, many market players believe that this is the optimal time to invest in properties to avoid potential future price increases.
