Dropping interest rates are driving demand for properties for sale
According to a study by real estate platform ImmoScout24, falling interest rates are leading to rising demand for properties for sale in Germany. One expert also predicts that rental prices will continue to rise.
According to a study by real estate platform ImmoScout24, interest in buying property in Germany is on the rise again thanks to falling interest rates. In four out of eight major cities, asking prices are already above the previous year's level, ImmoScout24 announced on Monday.
"Compared to the previous year, interest in buying property has risen considerably - by as much as 49 percent in the major cities," explained Gesa Crockford, Managing Director of ImmoScout24. The excess supply on the purchase market is decreasing. "We therefore assume that purchase prices will rise in the future."
In the first quarter of 2024, the average asking price for existing apartments for sale across Germany rose by 0.6 percent compared to the previous quarter to EUR 2,490 per square meter. Nevertheless, prices are still 2.5 percent below the previous year's figure.
"Rental prices will continue to rise"
The analysis shows weaker price momentum on the rental market, but still high demand pressure, according to the report. "Rental prices will continue to rise," said Kristian Kehlert, an expert at ImmoScout24. "Too little is being built.
On average, existing apartments were 1.7 percent more expensive for new rentals at the start of the year than in the previous quarter. The price trend for new-build apartments was up 1.6 percent. Accordingly, the average basic rent for a two-room apartment with 70 square meters in existing properties is 599 euros and 833 euros in new builds.
If you would like to know how the value of your property has changed, our DEKRA-certified property valuation experts will be happy to provide you with a free and non-binding market price assessment. Feel free to contact us!
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| Tel. | +49 211 - 86 32 38 0 |
| Fax | +49 211 - 86 32 38 11 |
| [email protected] |
