Frankfurt The German residential real estate market is currently characterized by two opposing trends: at the end of 2022, purchase prices fell for the first time in twelve years. However, rents have continued to rise recently.
The reasons for both developments are the sharp rise in lending rates and the general mood of crisis. They make financing more expensive for buyers, while high inflation prompts landlords to raise rents. As a result, home seekers find themselves in an insecure situation. This is reflected in the transaction volume: at the start of the year it fell by almost half.
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