Real estate market is recovering: prices for condominiums are rising again!

Real estate market is recovering: prices for condominiums are rising again!

The return of real estate prices in Germany is in full swing! In the third quarter of 2024, the figures from the German Real Estate Index (GREIX) show a clear upward trend: the prices for condominiums and single-family homes are rising again, even compared to the previous year! A look at the new apartments shows that they are almost back to their record level from 2022 - only 1.5 percent below!

“The German real estate market has left the dramatic decline behind it and is showing the first signs of recovery,” explains Jonas Zdrzalek, real estate expert at the Kiel Institute for the World Economy. Compared to the previous quarter, prices for condominiums rose by 1.4 percent, while single-family homes rose by 1.3 percent. But not all segments are the same: multi-family housing experienced a slight decline of 0.4 percent, which can be attributed to the high volatility in this area. The number of real estate transactions is increasing, but remains below the level of the boom years 2019 to 2021.

New apartments on record

The development of new apartments in the seven largest cities in Germany is particularly noteworthy. Here prices are almost back to their peak, which underlines the demand for new properties. In contrast, existing housing has experienced a decline of about 16 percent. Prices rose sharply in cities such as Leipzig (+7 percent) and Duisburg (+6.3 percent), while Dortmund recorded a decline of 2.2 percent.

The current market dynamics show that many buyers are taking a wait-and-see approach, but the trend reversal seems to have begun. “Property prices are at their lowest in almost four years, and demand for new construction is enormous due to limited supply,” said Zdrzalek. The future of the real estate market remains exciting, and the coming months could be crucial for further development!