Prices for condominiums and single-family homes in Germany rose in the third quarter, by 1.4% and 1.3% respectively compared to the previous quarter. Multi-family houses became cheaper, but only by 0.4 percent. This price trend indicates that the real estate market is recovering from a previous sharp fall in prices. This is the result of a study and interpretation by the Kiel Institute for the World Economy (IfW Kiel).
In larger German cities, especially in the top 7 cities, prices for new-build apartments in particular are almost back to their 2022 highs. However, the decline in prices for existing apartments in Germany's seven largest cities remains noticeable. Interest in the real estate market remains subdued, with few transactions.
"Overall, the low number of transactions indicates that many market participants are still taking a wait-and-see approach," says Jonas Zdrzalek from IfW Kiel. However, the real estate expert assumes that buyers could return soon, especially as new builds are in high demand due to the short supply. The housing market is therefore proving resilient despite the general uncertainty.
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