Real estate market 2024: How financial experts assess the stabilization

Real estate market 2024: How financial experts assess the stabilization

According to a report by www.faz.net, Deutsche Pfandbriefbank predicts that the German real estate market will stabilize in 2024, with the residential real estate market benefiting from this sooner than the commercial real estate market.

According to the President of the Association of German Pfandbrief Banks, Gero Bergmann, the peak of the crisis is still ahead of us and capital values ​​will continue to fall for a few more quarters. An important prerequisite for stabilization is the conviction of market participants that interest rates will consolidate. Bergmann emphasizes that if the calculation basis becomes more secure and the returns in the real estate market continue to rise, the transaction market will also revive.

Despite the crisis, Bergmann does not see the banks in the front row of those affected this time. The entire sector has strengthened its capital base and earnings are adequate. The financial results of the vdp member institutions in the third quarter were mostly good, said Bergmann. Although further write-downs are expected, these should be easily bearable for the industry as a whole.

This forecast signals some confidence for the real estate market in Germany in 2024, especially for the residential real estate market. Confidence in a stabilization and recovery of the market could have a positive impact on the willingness to invest and the growth of the real estate sector.