According to the real estate price index (GREIX), residential real estate prices in Germany are set to fall significantly in the third quarter of 2023. This trend can be seen in all residential segments, with regional differences. In the major cities of Cologne and Berlin in particular, prices remained relatively stable, while in other regions some significant price declines were recorded. At the same time, the number of real estate transactions also fell significantly, indicating weakening market interest.
In detail, the GREIX data shows that prices for condominiums fell by 1.5% on average, while single-family homes recorded a decline of 3.2% and multi-family homes even fell by 5.9% (compared to Q2 2023). Adjusted for inflation, these declines are even more pronounced (2.2%, 3.9% and 6.6%). Compared to Q3 2022, all residential segments experienced sharp price declines: prices for condominiums fell by 10.5%, those for single-family homes by 12.1% and those for multi-family homes by 24%.
In the seven largest German cities - with the exception of Cologne, where a slight increase of 1.1% was recorded - prices for condominiums fell. Düsseldorf recorded the sharpest fall in prices at minus 6.6 percent. Outside the top 7 cities, there were also declines, with Leipzig, Duisburg, Münster and Erfurt particularly hard hit. Chemnitz and Potsdam were positive exceptions with price increases. The Greix is financed by public funding. It is a project of the DFG-funded Bonn-Cologne Cluster of Excellence ECONtribute and the Kiel Institute for the World Economy (IfW Kiel) in cooperation with the local expert committees.
Source and further information: ifw-kiel.de
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