According to the "Living in Germany 2023" study by the Sparda banks, the desire for home ownership is strong in Germany. For example, 74% of residents would like to own their own home. However, the home ownership rate has been below 50 percent for a decade, putting it at the bottom of the European league. More complex market conditions, rising construction costs and interest rates have led to increased uncertainty.
One reason for high construction costs, for example, is the shortage of building land. Nevertheless, according to the study, real estate prices have maintained their momentum and have risen by a further 20 percent since 2020. "We are seeing smaller price corrections, for example by an average of 3.5% in the fourth quarter of 2022," says Florian Rentsch, Chairman of the Board of the Association of Sparda Banks.
The Sparda banks cite continued high demand, far too few building applications and building completions as well as the effects of record immigration as reasons why they do not see a lasting downward correction in residential real estate prices. Interested parties can view the full results of the study in an interactive online tool at sparda-wohnen2023.de.
Source and further information: sparda-verband.de
© Fotolia
