Real estate prices in Frankfurt are falling, VDP warns of further decline

Real estate prices in Frankfurt are falling, VDP warns of further decline

According to a report by www.focus.de, data from the Association of German Pfandbrief Banks (VDP) show a sharp decline in real estate prices in German cities. Frankfurt is particularly affected, where prices have fallen by 9.1 percent. Declines were also recorded in other cities such as Munich, Hamburg, Cologne, Stuttgart, Düsseldorf and Berlin. These figures are worrying and show the ongoing crisis in the German real estate market.

According to the association, the main reason for the drop in prices is the sharp rise in interest rates, which makes financing more expensive. This has resulted in international investors holding back in Frankfurt and new construction stalling, meaning that less expensive properties are coming onto the market. The market for high-rise residential buildings in particular has deteriorated.

These developments have implications for both potential sellers and buyers. Sellers should wait until the general conditions improve, which will probably only happen when interest rates fall. For buyers, however, this opens up the opportunity to purchase home ownership more cheaply. However, it is advisable to only act with solid financing.

The ongoing crisis on the real estate market could lead to further uncertainty in the future and have a strong impact on the market. One solution could be a reduction in interest rates, which would encourage potential buyers and investors. It remains to be seen how the situation will develop in the next few quarters, but careful monitoring of the market during this time is of great importance.