Kassel real estate market: prices fall by 10 percent

Kassel real estate market: prices fall by 10 percent

Real estate prices in Kassel, especially for one- and two-family homes, recorded an average decline of ten percent last year compared to the previous year. This development was mainly influenced by the significant increase in interest rates since 2022, higher construction and energy costs and legal requirements from the Building Energy Act (GEG). According to the German Real Estate Association (IVD) for North Hesse, this trend is not only present in Kassel, but also nationwide.

Dietmar Hennig, spokesman for IVD Nordhessen, emphasizes that despite the continued interest in home ownership, many potential buyers are hesitant due to financial and legal conditions. The state of renovation of the properties is playing an increasingly important role, as many older houses require significant investments in order to meet the energy requirements of the GEG. This also influences the pricing on the part of the sellers.

The price declines also affect the market for multi-family homes as an investment, as increased loan interest rates make alternative investment options appear more attractive. The reports from the IVD and the expert committee show overall falling demand and stagnating purchase prices in the entire real estate market in the Kassel area.

The market for building plots shows a similar trend, with the sale of suitable plots becoming more difficult due to high construction costs, interest rates and building requirements. Nevertheless, there are signs of a slight easing, as construction prices and material costs have fallen slightly. With regard to rents and the office market, the situation in Kassel remains comparatively stable at a moderate level, despite some difficulties on the real estate market.