2024: Real estate market facing another crisis? Experts do not see a quick recovery in Germany

2024: Real estate market facing another crisis? Experts do not see a quick recovery in Germany

According to a report by www.boerse-online.de, the transaction volume on the German real estate market has reduced drastically in 2023, mainly due to high interest rates. A recovery in the housing market was originally forecast for 2024, but signs point to stagnation. The central bankers' statements in Davos indicate that rapid interest rate cuts are unlikely. This means that the imbalance in the real estate market is likely to worsen further.

The high interest rate burden has put pressure on the real estate market and reduced interest from potential buyers. At the same time, there is a significant shortage of living space, which further exacerbates the imbalance. The situation in the construction industry also contributes to this development, as projects are stagnating due to high costs and bottlenecks in capital and raw materials.

According to experts, 2024 could be another crisis year for the real estate market in Germany. A quick recovery in transaction volumes is not in sight and major real estate companies could face further devaluation and oversupply.

Without a significant reduction in prices or interest rates, no improvement in the housing market is likely to be expected. Normalization is likely to be a long time coming, although as the crisis drags on, the likelihood of shoppers finding bargains increases. The future of the real estate market in Germany therefore remains uncertain and a sustained period of weakness is to be expected.