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German real estate bubble burst: loss of almost a trillion euros
Almost a trillion euros lost – What does that mean for homeowners in Germany? Find out how the real estate market is suffering and the impact this has on houses and financing.
German real estate bubble burst: loss of almost a trillion euros
The German real estate market is recording enormous losses of almost a trillion euros, which has a significant impact on homeowners. Real estate prices fell by 8.4 percent in 2023, leading to bankruptcies of real estate companies and shaking the entire industry. According to one estimate, homeowners could have lost almost a trillion euros in value.
The real estate assets of German private investors officially amounted to 10.2 trillion euros, although they fell by 479 billion euros within 12 months. According to reports, the actual loss, taking inflation into account, is 944 billion euros - almost double the official decline. Rising interest rates and the loss of real estate value pose challenges for homeowners, especially when it comes to final financing.
The real estate market in Germany is struggling with difficulties, which is also noticeable when selling real estate. Owners who want to sell their properties have difficulty finding interested parties. It is recommended to choose the timing of the sale carefully. Although the real estate market is picking up and attracting new buyers at the beginning of 2024, it remains unclear when prices will rise again and the situation will stabilize.