Residential construction in Berlin: Rising building interest rates are causing prices on the real estate market to fall. But there is one residential segment that is not suffering as badly as the others.
(Photo: IMAGO/Sabine Gudath)
Frankfurt Potential buyers are happy about what annoys many owners: prices on the German real estate market are going downhill. For several months, asking prices nationwide have generally been on a downward trend. The average prices per square meter have fallen in almost all major German cities, as evaluations by real estate portals show. The price correction is already up to ten percent.
According to experts, the reason for this is the rise in mortgage interest rates. They depress purchase demand, which leads to lower valuations. Therefore, when making a decision, interested parties must currently calculate how crisis-proof the dream property is against a further price slide. Also because of the high financing costs, bidders check much more fundamentally whether buying a property is worthwhile at all.
But some residential properties are proving to be stable in value despite the trend reversal. And even within the cities, there are sometimes blatant differences in the development of prices. Details are provided by calculations by the Swiss real estate appraiser Price Hubble, which are exclusively available to the Handelsblatt. Below are the most important findings.
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