Real estate prices are no longer rising: is this a chance for buyers?
Demand for real estate has fallen in most major cities and prices are not rising as much as they were a few months ago. In some major cities, prices are even falling.
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In its “Price Compass” for the second quarter of 2022, the Immowelt portal recorded a decline in demand for residential property in 13 of the 14 cities surveyed. According to this, the inquiries for real estate offers in Berlin and Hamburg have roughly halved compared to the same period last year, and the numbers in Cologne and Munich have also fallen significantly. Of the cities examined, there was only a slight increase in demand in Leipzig.
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Fewer offers in Berlin and Hamburg
At the same time, the number of offers increased in most cities, sometimes sharply – for example in Essen, Bremen and Cologne. Only in Berlin and Hamburg, on the other hand, were there significantly fewer real estate offers: In Berlin the number fell by 44 percent and in Hamburg by 16 percent.
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Immowelt also observes that the prices for residential property have by no means increased in all cities, as was the case recently. Instead, they remained the same or decreased slightly in half of the major cities surveyed.
Prices are falling in the first major cities
In the second quarter of 2022, the purchase price development lost momentum, especially in the most expensive cities. The traditionally very expensive cities of Munich, Frankfurt am Main and Cologne recorded stagnating or even slightly falling prices. In Berlin and Hamburg, on the other hand, prices rose again – but only slightly, by one to two percent. There was a similar increase in Bremen, Nuremberg, Dortmund and Dresden, for example.
The real estate portal cites the increased interest rates, high inflation, the corona pandemic, disrupted supply chains and the uncertainties caused by the war in Ukraine as reasons for the drop in demand and prices. But those interested in buying should be careful: The changed situation does not mean that apartments and houses are now available at bargain prices.
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Square meter in Munich costs more than 9500 euros
On the contrary, prices are still high: in the most expensive city of Munich, a square meter currently costs EUR 9,551, followed by Hamburg (EUR 6,748/m²), Frankfurt/Main (EUR 6,554/m²) and Stuttgart (EUR 5,767/m²). And in the capital Berlin, the price per square meter in this “Immowelt price compass” has exceeded the 5000 euro mark.
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