Financial expert analyzes: Berlin real estate market in crisis - What buyers and agents need to pay attention to

Financial expert analyzes: Berlin real estate market in crisis - What buyers and agents need to pay attention to

According to a report from www.faz.net, the real estate market in Berlin has become significantly more difficult since the interest rate turnaround and inflation. It now takes three to six months for a property to sell, compared to just four weeks in 2021. The difficulties are particularly in the new build business as buyers have become more cautious and are taking more time to make a decision. An even more difficult market is expected for 2024.

Lower income and falling property prices have led to a downward trend in the number of agents. Many poorly qualified occasional brokers stop working altogether due to the challenging market environment. In addition, the brokerage activity has become more demanding due to the increased demands on market knowledge and specialist knowledge.

Digitalization is also having an impact on the real estate industry, with some companies, such as Homeday and McMakler, cutting jobs, while others, such as Von Poll Immobilien, relying on professional and comprehensive advice from competent real estate experts. The entry of new providers like Neho with a significantly lower commission model shows that the market in Germany still has potential for competition.

This represents a challenge for the financial industry, as the processes are becoming increasingly complex and the costs cannot be managed without high sales figures. However, the stabilization of demand at a low level and the currently reduced construction financing costs could lead to a recovery in the market, according to the industry association IVD.

All in all, the financial industry is facing a period of adaptation and restructuring to respond to the new challenges of the real estate market.