Real estate sales in Munich: Analysis shows dramatic decline in sales - experts do not see a reversal in the trend.

Real estate sales in Munich: Analysis shows dramatic decline in sales - experts do not see a reversal in the trend.

According to a report from www.abendzeitung-muenchen.de, the autumn analysis by the city's expert committee shows that real estate sales in Munich are stagnating. Total sales of real estate transactions fell by 43 percent compared to the same period last year. There was also a 23 percent decline in the number of purchase contracts. The number of property sales contracts is expected to fall from 12,000 to 9,000 to 10,000. Construction projects for single-family, multi-family, terraced and semi-detached houses have fallen drastically. The total volume of all residential complexes built has also fallen by 35 percent. The only constant is the price per square meter for first occupancy of new apartments, which remains stable. However, resale prices for condominiums have fallen year-on-year.

Real estate prices are stable, but sales figures are falling drastically. This could be due to the deteriorating economic situation. If interest rates rise and construction costs continue to rise, this could cause the real estate market to decline further. It is important that interest rates in particular remain stable in order to ensure planning security again.
The trend on the building land market for individual housing shows that there is less and less on offer. As a result, there is less trading here too. Monetary turnover in this category has also fallen significantly. This indicates a shortage of available building land, which could cause prices to rise further. The low number of available spaces leads to individual large sales, which cause enormous swings in sales. This was also the case with the sale of the commercial area to Apple, which increased sales fivefold.

The stagnation and decline of the real estate market in Munich will impact future prices and supply. It is important to stabilize economic conditions to restore investor and buyer confidence in the market.