Real estate price trend: Germany is increasing

Real estate price trend: Germany is increasing

In the last quarter of 2023, Germany, along with two other EU countries, recorded a decline in property prices. However, this situation changed in the first quarter of this year. While property prices in France fell by 0.5 percent, in Germany they rose by 1.6 percent to an average price level of 2,998 euros per square meter.

Current developments show that building interest rates behave differently in European countries. In Germany, real estate financing has become cheaper by an average of 0.4 percent, with loans now available well below the 4.0 percent mark. In comparison, interest rates in France have risen by 0.1 percentage points, which is affecting the price level of residential property in the country.

In the European comparison of real estate prices, Germany takes third place with an average price per square meter of 2,998 euros. Luxembourg tops the list with 8,458 euros per square meter, while buying property in Italy is the cheapest at an average of 1,850 euros.

According to the European Central Bank (ECB), real estate financing in Germany is booming. In the past few months, significantly more loans have been granted for real estate than in the previous year. In January, awards rose by 15 percent compared to the same month last year, and in February even by 18 percent. In contrast, in France, in January and February this year, construction financing was down 40 percent and 37 percent respectively compared to the same period last year, reflecting the impact of high interest rates.