Rising real estate prices in North Rhine-Westphalia: Experts warn of further increases.

Dusseldorf.Real estate and building plots have become even more expensive in North Rhine-Westphalia. Prices for residential property rose by an average of eight percent in 2022.

Summary

According to a report from the 2023 real estate market report for North Rhine-Westphalia, presented by the Ministry of the Interior, real estate and building plots in North Rhine-Westphalia continued to rise in price. Prices for residential property rose by an average of eight percent in 2022, while undeveloped building plots became six percent more expensive.

Own analysis and effects

These figures show that the real estate market in NRW remains robust and continues to grow. The high demand for residential property and building plots is driving prices ever higher. In Cologne in particular, prices for apartments in medium-sized residential areas are the highest at 6,640 euros per square meter. The increased prices are making it increasingly difficult for many people to afford property, which further increases demand.

On the other hand, the decline in purchase contracts compared to 2021 shows that the interest rate increase for construction financing has had an impact since the beginning of 2022. The higher interest rates can deter potential buyers and lead to fewer properties being purchased.

The decline in the purchase of undeveloped building plots and the collapse in sales of commercially usable building plots for office, administrative and commercial properties show that demand has also fallen here. Other factors such as a lower willingness of companies to invest may also play a role here.

Overall, we can assume that the real estate market in North Rhine-Westphalia will continue to grow, albeit perhaps more slowly than in previous years. Rising prices are making it difficult for many people to purchase home ownership, while the decline in sales contracts and demand for building land points to the impact of the interest rate hike and other economic factors.

Source: www.waz.de