In recent years, there has been a consistent rise in real estate prices. However, due to increased interest rates, this upward trend receded, leading to a decline in real estate prices. Nevertheless, this trend has now stabilized. In the year 2022, prices decreased on average by 7.5%. In comparison, prices only decreased by 3.2% in the first half of 2023.
When considering the first two quarters of 2023, these prices remained nearly unchanged.
Conversely, there continued to be a slight increase in prices for single and multi-family homes, while condominiums only experienced a minor decline. Following such a significant price decrease, the possibility of a phase of notable price increases now arises – a development that remains to be seen.
Among Germany’s major cities, Berlin exhibited the smallest decrease in prices, at just 3.6%, whereas cities like Munich or Hamburg saw price reductions of over 6%. In parallel, rents continue to rise nationwide, increasing by approximately 6.2% compared to the previous year’s quarter, as the demand for housing remains very high.
Berlin, 17.08.2023
