This is how prices will develop in the coming months

new building

The shell of a single-family house in a snow-covered building area: The German real estate market is currently experiencing a trend reversal, the Pfandbrief banks believe.

(Photo: dpa)

Frankfurt According to experts, the slide in prices on the German real estate market in Germany will not come to an end anytime soon. “We assume that prices will continue to fall,” said Jens Tolckmitt, general manager of the Association of Pfandbrief Banks (VdP), in Frankfurt. It can be assumed that the moderate decline in residential real estate prices will continue. “Due to the continued high demand for living space, no price collapses are to be expected from today’s perspective,” says Tolckmitt.

However, the yields would have to adjust to the increased financing costs and the prices should therefore go down again somewhat. However, even with a 20 percent drop over a longer period, prices would still be at 2020 levels, Tolckmitt stressed. The situation is therefore less dramatic than partially portrayed. According to a study by DZ Bank, purchase prices for residential properties are expected to fall by four to six percent on average in 2023.

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