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Prices for real estate in Cologne are falling - experts warn against making purchasing decisions too quickly and provide insights into the reasons for the price development
According to a report from www.ksta.de, it can be observed that the prices for real estate in Cologne are falling. Prices for both condominiums and single- and two-family homes collapsed last year, although the decline varies depending on the property. This trend can be observed not only in Cologne, but also in numerous other major German cities. According to experts like Melanie Kloth, a key reason for the price decline is the rise in construction costs and interest rates. The rising interest rates mean that prospective buyers are able to borrow and finance less money, which in turn leads to a decreasing willingness to pay. This results in the…
Prices for real estate in Cologne are falling - experts warn against making purchasing decisions too quickly and provide insights into the reasons for the price development
According to a report from www.ksta.de, it can be observed that the prices for real estate in Cologne are falling. Prices for both condominiums and single- and two-family homes collapsed last year, although the decline varies depending on the property. This trend can be observed not only in Cologne, but also in numerous other major German cities.
According to experts like Melanie Kloth, a key reason for the price decline is the rise in construction costs and interest rates. The rising interest rates mean that prospective buyers are able to borrow and finance less money, which in turn leads to a decreasing willingness to pay. As a result, real estate prices are falling. Michael Voigtländer, an expert in real estate markets, also confirms that prices develop differently depending on the location. Where prices were already high and rising sharply, there has been a greater decline.
The effects on the market are noticeable: the price decline for single and two-family homes in Cologne is on average around eleven percent. This also affects rents, which continue to rise in contrast to purchase prices. According to Voigtländer, rents will probably continue to rise in the long term as less and less is being built. In addition, living space continues to be scarce, which is stabilizing prices.
Despite the current price decline, experts like Voigtländer and Kloth emphasize that it could be worth buying a property right now, especially for those with sufficient equity. However, it should be taken into account that the supply of new buildings in particular has collapsed and that older properties in particular are on the market.
Overall, it can be seen that price developments on the real estate market depend on various factors and have different effects depending on the location and type of property. It remains to be seen how the market will develop in the coming months.
Read the source article at www.ksta.de