The mood on the property market fluctuates between optimism and cautious anticipation. ImmoScout24 reports: "The desire to buy is returning". The "Analysis of asymmetric price trends on the residential property market" shows what this means.
The downward trend in property prices had slowed since 2023 and spread to more and more regions. In around 96 per cent of all regions, owner-occupied flats were cheaper in real terms than in the previous year. The seven largest metropolises were hit harder than other large cities, medium-sized towns and rural districts. Prices only rose in real terms in 16 regions. On average across all regions, prices fell by 10.1 per cent in 2023 compared to 2022.
The Europace House Price Index registered a turning point in March 2024 with rising property prices in all segments. The overall index rose by 0.60 per cent. An increase of 0.79 per cent was recorded for condominiums. Prices for existing single-family homes also rose by 0.4 per cent compared to the previous month.
Rising demand since the beginning of 2024 and persistently low interest rates have contributed to this development and could be the start of a trend reversal. "Compared to the previous year, interest in buying property has risen considerably - by as much as 49 per cent in the major cities," says Dr Gesa Crockford, Managing Director of ImmoScout24. Purchase demand peaked in 2021 before levelling off significantly in 2022.
According to a study by the German Economic Institute, the cities of Munich and Chemnitz represent the broad spectrum of metropolitan property market developments when analysing asymmetric price trends. Overall, there are clear differences for the entire group of 70 cities analysed, whose urban housing markets exhibit very different structural price trends.
Conclusion: Anyone thinking about buying or selling a property now should definitely consider the regional particularities and call on the expertise of property specialists.
(Photo: © Pedro Wroclaw, Pixabay)
