Potsdam as the new frontrunner: Real estate prices remain stable despite a nationwide decline.

Potsdam as the new frontrunner: Real estate prices remain stable despite a nationwide decline.

While real estate prices are falling across Germany, the market in Potsdam appears to be comparatively little affected. As a market analysis by the Berlin research institute Empirica shows, Potsdam has even risen into the top 5 German cities when it comes to prices for new condominiums. "The first four cities in the top 10 remain unchanged. Düsseldorf and Potsdam swap places," says the evaluation of the price ranking for the third quarter of 2023.

According to a report from www.tagesspiegel.de, the real estate market in the state capital Potsdam remains unaffected by the nationwide price declines. On the contrary, prices for new condominiums have actually increased, indicating high demand in the region. The city of Potsdam is even among the top 5 German cities with the highest real estate prices.

The reasons for this development are diverse. Potsdam benefits from its attractiveness as a place to live, both for locals and for commuters to Berlin. The proximity to the capital, the high quality of life and the picturesque surroundings with lakes and parks make Potsdam a sought-after residential area. In addition, many real estate investors also invest in Potsdam because they see good return opportunities there.

However, the rising real estate prices in Potsdam also have an impact on the market and the industry. On the one hand, property owners benefit from higher sales prices, which can potentially free up capital. On the other hand, buying real estate is becoming increasingly difficult for private individuals, especially for those with low incomes or younger people who cannot afford the Potsdam real estate market.

However, it remains to be seen how the real estate market in Potsdam will develop further. The increased prices could deter potential buyers, leading to a drop in demand and ultimately a drop in prices. Developments on the labor market and the economy will also have an impact on the real estate market.

Overall, it can be said that the Potsdam real estate market has developed positively despite the Germany-wide price decline. High demand and limited housing supply have led to rising prices. However, it remains to be seen how the situation will develop in the future.

Source: According to a report from www.tagesspiegel.de [open link]