Real estate blog - News and interesting facts from Passau

The ECB has raised its key interest rate for the first time since 2023, which is also having an impact on real estate prices in Passau. With its decision on June 11, 2026, the European Central Bank raised the deposit facility rate by 0.25 percentage points to 2.25%. The other interest rates were also adjusted accordingly. The deposit facility rate (DFR) now stands at 2.25%, the main refinancing rate (MRO) at 2.40%, and the marginal lending facility rate (SFR) at 2.65%. The decision was primarily driven by persistent inflation risks and rising energy prices. At the same time, the ECB emphasized that further decisions will be data-dependent. For homebuyers, it is important to note that mortgage rates are not directly linked to the ECB’s key interest rate, but are more closely tied to the capital markets—and in particular to long-term German government bonds. Nevertheless, monetary policy indirectly influences financing costs, often very significantly.

The city at the confluence of three rivers captivates visitors with a quality of life that is largely shaped by its rich history and impressive setting. Anyone exploring Passau’s architectural and scenic highlights will quickly discover that the city offers a unique blend of Baroque charm and natural beauty. Its special location at the confluence of three rivers creates a Mediterranean atmosphere that evokes a genuine vacation feeling in everyday life. As a local real estate agent in Passau, we know that these cultural treasures also significantly shape the city’s appeal as a place to live.

Anyone looking to buy or sell a property in Passau or the surrounding area will quickly come across various valuation methods. The most commonly mentioned are the sales comparison approach, the income approach, and the cost approach. But what do these terms actually mean? In this article, we explain the three most important valuation methods in simple, easy-to-understand terms and show when each method is used.