German real estate market: Low sales forecast

German real estate market: Low sales forecast

According to a report by www.fr.de, a report shows how bad the German real estate market is. Sales have reached record lows and there is no improvement in sight. According to the Germany 2023 real estate market report, real estate sales in 2022 fell to their lowest level since 2009. Total sales also fell by 16 percent from 375 to 301 billion euros. The reasons for these sharp declines are rapidly changing conditions, including increased construction costs, material shortages, supply bottlenecks, higher energy prices due to the Ukraine war and rapidly rising interest rates. In parallel to this report, the German Institute for Economic Research (DIW) published a study that recorded a decline in real estate prices in Germany for the first time since 2010. Prices fell on average by two percent in more than 150 cities examined.

These developments have a significant impact on the real estate market and the construction industry in Germany. The sharp decline in sales and revenue could lead to a further slowdown in the construction boom, falling property prices and a lack of investment in the market. This in turn could have a negative impact on the economy as a whole, as the real estate market is an important economic factor in Germany. Potential buyers may hesitate due to the uncertain market situation, which could lead to a further decline in sales.

It remains to be seen how the situation on the real estate market will develop. Government interventions or incentives may be required to support market recovery and restart investment. However, it is clear that the German real estate market is facing major challenges and long-term changes may be imminent.