The newly built old town of Frankfurt am Main: In the large metropolises, prices fell significantly at the beginning of the year.
(Photo: imago images/Westend61)
Frankfurt Rising interest rates, high inflation and construction costs have surprisingly pushed prices on the German real estate market into the red. After declines at the end of the year, apartments and one- and two-family houses became cheaper in the first quarter of 2023 than they had been in 23 years, as the Federal Statistical Office announced on Friday in Wiesbaden. According to the Federal Office, residential real estate lost an average of 6.8 percent in value in the first quarter compared to the same quarter of the previous year. The statisticians believe that “the decisive factor for the decline in purchase prices is likely to continue to be a drop in demand as a result of increased financing costs and persistently high inflation”. Experts expect prices to fall even further this year.
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