As of: March 26, 2024, 4:00 p.m
By: Carina Blumenroth
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According to the Federal Statistical Office, real estate prices have fallen more sharply than at any time since 2000.
Why this is and what differences there are.
Anyone who wants to buy a house or apartment in Germany often has to dig deep into their pockets.
But last year, real estate prices fell by an average of 8.4 percent, according to the
Federal Statistical Office.
“This was the largest year-on-year decline since the time series began in 2000 and the first decline since 2007,” the statement said.
Existing properties have become cheaper by 7.8 percent, new buildings by just 3.2 percent.
The decline can be seen in cities, but also in rural areas.
What's behind it.
Purchase prices for real estate have fallen: the biggest decline in around 60 years
Real estate prices fell by 8.4 percent in 2023.
(Symbolic image) © Uwe Umstätter/Westend61/Imago
The
Federal Statistical Office (DESTATIS)
shares
year-on-year price developments for real estate on
X (formerly Twitter) .
The period between 2010 and 2024 can be seen on the timeline.
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The statistics make it clear that prices have been rising continuously for a long time.
A downward trend in the real estate market has only been noticeable since mid-2022.
A statement from the German Press Agency (dpa) shows that in Germany in 2023 there was the sharpest decline in residential real estate prices in around 60 years.
The dpa relies on an assessment by the Kiel Institute for the World Economy (IfW).
The lower prices have also had an impact on metropolises such as Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart and Düsseldorf.
At the end of the year, prices for single- and two-family homes fell by an average of 9.1 percent over the course of a year, and for condominiums by 5.8 percent.
These are generally average values - there are lower prices for real estate, especially for older properties, but things can be different for modern and energy-efficient properties,
ZDF informs today
.
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When it comes to real estate, it's not just the location that matters, but also the condition of the apartment or house.
If you need or want to sell your property now and it is not up to date with the latest energy standards, you will probably have to expect a lower sales price.
If you inherit a property, you also have to pay attention to possible renovation conditions and inheritance tax.
Reason for lower real estate prices: increased interest rates and requirements for renovations
Real estate prices have fallen, but you have to put this in perspective.
One reason may be the increased interest rates, which have made loans significantly more expensive, informs the dpa.
Many people can no longer afford their own four walls.
In addition to financing, the requirements for the renovation of existing buildings must also be taken into account.
For example, if work needs to be done on the heating or insulation of the property, the
FAZ's Finance and Real Estate podcast provides information.
The podcast also states that the key interest rates of the European Central Bank (ECB) are to be reduced in June, with those responsible citing a statement by Christine Lagarde, President of the ECB.
This could also have an impact on building interest rates in the long term.
If interest rates fall faster than expected, real estate prices could rise again, the
Tagesschau
reported at the end of December, citing DZ Bank.
(With material from dpa)