Falling property prices in Germany: These are the best countries for buying property.

Falling property prices in Germany: These are the best countries for buying property.

According to a report from www.noz.de, a European analysis shows that property prices in Germany are declining. Compared to the beginning of 2022, there was a price reduction of almost six percent in Germany. Real estate prices have also fallen somewhat in France and Luxembourg. In southern European countries, however, prices have risen sharply, especially in Spain, where a property costs on average 7.2 percent more than in 2022.

Despite the fall in property prices in Germany, housing is still more expensive than in Spain, Italy and Belgium. The price per square meter in Germany is 3,073 euros, while in Spain it is just under 2,000 euros. In Portugal, prices increased by 5.6 percent as foreign investors are attracted by cheap prices and government investments. This makes buying property in Portugal more difficult than in Germany, despite low prices.

In Belgium, the still high building interest rates make it difficult to purchase a property. This means potential buyers can afford less living space. On average, a two-person household without children can now only afford an apartment of 58 square meters, whereas in 2022 it was still 69 square meters. In Belgium, living space has even fallen by up to 25 square meters.

These facts show that the real estate market in Germany and other European countries is influenced by various factors. The decline in property prices in Germany can have an impact on both buyers and investors. Buyers may be able to afford larger living spaces due to falling prices. However, investors could potentially lose interest in the German real estate market and instead invest in countries with higher returns and more stable growth. In the long term, this could lead to a decline in investment and a further decline in property prices.

Overall, however, the real estate market remains a complex and dynamic market that is influenced by various factors. It is important to closely monitor current developments and continually analyze the impact on the market and the industry. This is the only way to predict future trends and develop appropriate strategies.