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Housing Market: Germany (view source)

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The overall index recorded its absolute peak in June 2022 with an index value of 224.87. Since then, underlying property prices and therefore the index have declined slightly. However, the price increase only continues for newly built houses and the other segments also stabilized in spring 2023.
The overall index recorded its absolute peak in June 2022 with an index value of 224.87. Since then, underlying property prices and therefore the index have declined slightly. However, the price increase only continues for newly built houses and the other segments also stabilized in spring 2023.
[[File:Screenshot 2024-03-26 142108.png|center|thumb|587x587px|https://www.haufe.de/immobilien/entwicklung-vermarktung/marktanalysen/europace-hauspreisindex-epx_84324_615960.html]]
===== Q3 2023 =====
On average, the price of apartments fell by -10.9% compared to the same quarter last year, while the price for houses fell by -7.8%.
{| class="wikitable"
! colspan="3" |Aparment Prices<ref>https://www.drklein.de/immobilienpreise.html#:~:text=Die%20Immobilienpreise%20steigen%20seit%20Anfnag,190%2C71%20Indexpunkte%20im%20Februar.</ref>
! colspan="3" |'''Single- and two-family houses'''
|-
!Location
!Median price in €/m²
!Median price for 90 m² apartment
!Location
!Median price in €/m²
!Median price for 150 m² house
|-
|Munich
|7,119 €/m²
|€640,710
|Munich
|6,027 €/m²
|€904,050
|-
|Berlin
|5,154 €/m²
|€463,860
|Stuttgart
|4,107 €/m²
|€616,050
|-
|Hamburg
|4,495 €/m²
|€404,550
|Berlin
|3,900 €/m²
|€585,000
|-
|Stuttgart
|3,911 €/m²
|€351,990
|Hamburg
|3,554 €/m²
|€533,100
|-
|Frankfurt
|3,857 €/m²
|€347,130
|Frankfurt
|3,504 €/m²
|€525,600
|-
|Cologne
|3,531 €/m²
|€317,790
|Cologne
|3,125 €/m²
|€468,750
|-
|Dusseldorf
|3,495 €/m²
|€314,550
|Dresden
|3,100 €/m²
|€465,000
|-
|Dresden
|2,979 €/m²
|€268,110
|Dusseldorf
|3,082 €/m²
|€462,300
|-
|Hanover
|2,822 €/m²
|€253,980
|Dortmund
|2,715 €/m²
|€407,250
|-
|Dortmund
|2,174 €/m²
|€195,660
|Hanover
|2,601 €/m²
|€390,150
|}
==== Forecasts 2024 ====
==== Forecasts 2024 ====
'''Schwäbisch Hall real estate expert Oliver Adler. (Source: Bausparkasse Schwäbisch Hall AG):'''   
'''Schwäbisch Hall real estate expert Oliver Adler. (Source: Bausparkasse Schwäbisch Hall AG):'''   
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* Thesis 2: '''In 2024, real estate prices will only fall slightly.''' The '''experts at DZ Bank expect a range between -0.5 and -2.5 percent'''. They also assume that negative characteristics, such as poor location or poor energy efficiency, will depress the price structure of real estate. But: If building interest rates fall faster than expected, this could cause property prices to rise again.  
* Thesis 2: '''In 2024, real estate prices will only fall slightly.''' The '''experts at DZ Bank expect a range between -0.5 and -2.5 percent'''. They also assume that negative characteristics, such as poor location or poor energy efficiency, will depress the price structure of real estate. But: If building interest rates fall faster than expected, this could cause property prices to rise again.  
* Thesis 3: We have a large, but difficult to quantify, potential of potential real estate buyers who have put their plans on hold since the rise in interest rates and are exploring the market. From 2024 onwards, they will increasingly appear as buyers and may build more new ones again because construction capacity will be freed up. The German Economic Institute in Cologne therefore sees higher real estate prices again from 2024. Another reason is the increased rental prices - by a total of 3 percent in 2023. According to DIW, they will continue to rise, solely due to the increasing total population. This makes housing more expensive for everyone, for buyers and tenants.  
* Thesis 3: We have a large, but difficult to quantify, potential of potential real estate buyers who have put their plans on hold since the rise in interest rates and are exploring the market. From 2024 onwards, they will increasingly appear as buyers and may build more new ones again because construction capacity will be freed up. The German Economic Institute in Cologne therefore sees higher real estate prices again from 2024. Another reason is the increased rental prices - by a total of 3 percent in 2023. According to DIW, they will continue to rise, solely due to the increasing total population. This makes housing more expensive for everyone, for buyers and tenants.  
'''DR.Klein (March 6,2024):'''
There will be no nationwide decline in real estate prices in the first half of 2024. How '''real estate prices develop depends primarily on the location and condition of the property.'''<ref>https://www.drklein.de/immobilienpreise.html#:~:text=Die%20Immobilienpreise%20steigen%20seit%20Anfnag,190%2C71%20Indexpunkte%20im%20Februar.</ref>
* In the large metropolitan regions, real estate prices remain stable or only fall slightly.
* In the surrounding area, real estate prices are falling slightly in the single-digit percentage range.
* In contrast, real estate prices in rural and structurally weak regions should fall significantly in the first half of 2024. Price drops of around 10 to 15% are possible.
* Existing properties that require a lot of renovation or have a poor energy balance also become cheaper. In particular, properties in energy efficiency classes G and H will also lose value in the first half of 2024.


==== Long Term Forecats ====
==== Long Term Forecats ====
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|0.29%
|0.29%
|}
|}
=== DR.Klein ===
In Germany, demand for real estate continues to be higher than supply. Accordingly, real estate prices will rise in the long term. Specifically, there are 4 points why property prices are not falling significantly despite currently high building interest rates.<ref>https://www.drklein.de/immobilienpreise.html#:~:text=Die%20Immobilienpreise%20steigen%20seit%20Anfnag,190%2C71%20Indexpunkte%20im%20Februar.</ref>
# '''Dream of owning your own home:''' Many Germans still want to own their own property. According to a current representative survey by Dr. Small 92% of 18-29 year olds will own home at some point.
# '''Slow construction pace:''' Construction is going on in Germany, but too slowly. The new apartments and houses are not enough to satisfy the need for space.
# '''Scarce resources and skilled workers:''' With the disruption of delivery routes during the pandemic, important building materials have either become more expensive or are difficult to obtain. There is also a lack of skilled workers on German construction sites, which is further slowing down the pace of construction.
# '''Increased demand due to labor migration:''' After the end of the pandemic, more foreign workers will come to Germany again. This continues to drive demand for real estate upwards.
=== <big>Rents</big> ===


== Berlin ==
== Berlin ==
=== <big>Supply</big> ===
=== <big>Demand</big> ===
=== <big>Prices</big> ===
=== <big>Rents</big> ===
== References ==
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