German house price decline: How financial experts assess the current situation.

German house price decline: How financial experts assess the current situation.

According to a report from www.faz.net, the fall in German property prices continues, new data shows. The Association of German Pfandbrief Banks reported an average price decline of 7.2 percent year-on-year in the fourth quarter of 2023. This represented a further decline of 2.2 percent compared to the previous quarter. Compared to the peak in spring 2022, real estate prices recorded a decline of 10 percent.

“A turnaround in real estate prices, which is often the subject of public speculation, is not yet foreseeable,” said association managing director Jens Tolckmitt. Residential and commercial real estate continue to see price declines. Over the year, the price decline for residential properties was 6.3 percent in Munich, 6.1 percent in Frankfurt, 5.3 percent in Stuttgart, 5.2 percent in Hamburg and 5.1 percent in Berlin.”

The data shows that the price decline in the German real estate market is continuing and could become stronger. It is particularly clear in the cities mentioned that property prices are declining. This could lead to increased demand, particularly from investors speculating on a cheap entry into the real estate market. At the same time, the drop in prices could make sellers reluctant to sell their properties at current prices, which could lead to a decrease in supply.

This development could lead to the real estate market in the affected cities recovering in the future if prices stabilize at a low level. This could lead to a rise in property prices in the long term as demand increases and supply becomes scarce. Investors and potential property buyers should therefore keep an eye on developments on the German property market.