Adjusted for inflation, real estate prices fell slightly for the first time in the majority of German districts and independent cities in 2022. This is according to the "Postbank Housing Atlas 2023". In around 63% of regions, condominiums were cheaper to buy than in the previous year. The seven largest metropolitan areas recorded sharper declines than medium-sized cities. On average, the inflation-adjusted price decline compared to 2021 was - 0.7 percent.
Higher interest rates, the high inflation rate and stagnating demand dominated the real estate market in Germany in 2022. Although nominal prices for condominiums continued to rise slightly, real prices fell in many areas. Experts are currently seeing a dip in prices, after which higher prices for residential properties are expected again.
The highest real price decline among the seven largest German cities was recorded in Munich (around -6.9 percent), followed by Hamburg (around -3.9 percent) and Frankfurt am Main (around -5.9 percent). Condominiums on the North Sea, on the other hand, continued to become more expensive, with real price increases of 8.2 percent in the district of Nordfriesland and 17.7 percent in the district of Aurich.
Source and further information: postbank.de
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