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Significantly increased demand on the real estate market
The real estate market is showing an upward trend again: prices are rising slightly. Discover the current developments and opportunities for property buyers.
Significantly increased demand on the real estate market
The mood on the real estate market picked up noticeably in the first quarter of 2024. This increase is mainly due to the drop in interest rates towards the end of the previous year, which led to many potential buyers wanting to make their dream of owning their own property a reality. The increased demand and improved affordability are also reflected in the financing figures.
The average purchase price for a property in Germany including additional costs was 449,000 euros in the first quarter of 2024, which corresponds to an increase of two percent compared to the previous quarter. This slight increase marks the first time purchase prices have risen again since the beginning of 2022. Jörg Utecht, CEO of the Interhyp Group, comments positively on this development and emphasizes that it is still too early to speak of a turnaround.
The Interhyp real estate price index shows that prices in Germany have risen by around one percent compared to the previous quarter. Regional differences continue to be evident, with price reductions in Munich and stagnating prices in Cologne, while cities such as Frankfurt, Berlin, Stuttgart and Hamburg recorded slight gains. There is an increase in prices for both existing properties and new buildings.
The improved affordability is primarily due to the fall in interest rates since the end of last year. Financing indicators for the first quarter of 2024 show a slight decrease in the average monthly rate and a decline in the share of the rate in household income compared to the fourth quarter of 2023. At the same time, the average repayment rate rose slightly again in the first quarter, which indicates a positive development.
Overall, the real estate market has evolved from a seller's to a buyer's market. There is a large selection of attractive properties and purchase prices are negotiable. Due to the lower interest rates at the beginning of the year, the conditions for purchasing real estate have become even more attractive. Experts therefore advise potential buyers to take advantage of the current opportunities and realize their dream of owning a home.