How much are real estate prices falling?

New building district in Frankfurt

For major projects such as Frankfurt’s Europaviertel, Joachim Wieland, head of project developer Aurelis, expects land prices to fall by up to 50 percent.

(Photo: dpa)

Dusseldorf Many market observers still didn’t want to admit it in the summer, but it has been reality since the third quarter: real estate prices in Germany are falling almost everywhere. The main reason for this is the sharp rise in construction interest rates, which have quadrupled since January.

Unlike the stock markets, for example, where supply and demand adjust every second, the real estate market is sluggish and reacts with a long delay. The crucial question is therefore: how much more will real estate prices fall because of the interest rate shock? The Handelsblatt asked around in the industry and answered the most important questions.

What is the current situation?

For the third quarter, the first real transaction data, i.e. not just asking prices from the real estate portals, have been published in the past few weeks, showing that prices are falling.

Read on now

Get access to this and every other article in the

Web and in our app free of charge for 4 weeks.

Continue

Read on now

Get access to this and every other article in the

Web and in our app free of charge for 4 weeks.

Continue

source site-12