Experiencing a decline in prices: Berlin stands out as an exception with stable property prices. In the 3rd quarter of 2023, prices are decreasing in many other major cities, but hardly in Berlin. Berlin’s real estate prices show only a slight decline of 0.8% - barely noticeable.
Berlin maintains stability: In the comparison between the 2nd and 3rd quarter of 2023, the capital city exhibits the smallest decrease. The real estate market in Cologne also appears similarly stable. On the other hand, Potsdam see an increase of 4.2% compared to the second quarter of 2023. Conversely, cities like Düsseldorf (minus 6.6%), Frankfurt am Main (minus 1.6%), and Stuttgart (minus 1.9%) are experiencing a decline in selling prices.
Currently, there is a decrease in demand for the purchase of older single and two-family houses.
The ongoing increase in interest rates remains the main reason for this trend. Comparisons with previous years are challenging, but the current price situation can be likened to that of the year 2019.
Despite sustained price declines, there is no end in sight, although the pace of the price decrease is slowing.
Considering the current outlook with no further expected interest rate reductions in the foreseeable future, the hope remains that significant further price changes will be avoided. Thus, a stabilization of real estate prices seems likely.
November 2023
