Rising purchase prices - first recovery on the real estate market?

In the first three months of 2024, the single-family home sub-segment recorded an increase of 1.5% compared to the previous quarter (Q4/2023), according to Sprengnetter's analysis. Compared to the previous year, this corresponds to a slight price increase of 0.3%. The condominium segment also recorded growth of 2% compared to the previous quarter, albeit with a slight decline of 0.6% compared to the same quarter of the previous year (Q1/2023).

Among the A-cities, Hamburg (+5%), Berlin (+2.6%) and Cologne (+1.7%) showed a significant increase in purchase prices compared to the previous quarter, while Munich (-0.1%) recorded stagnation.

Sprengnetter notes that after large discrepancies in the previous quarters, there has been a "convergence" in prices for modernized and non-modernized existing properties built in 1990 and earlier since summer 2022. The price differences have shrunk from 15% to 4%. In view of the improved situation regarding inflation, interest rates and construction prices, Christian Sauerborn, Chief Analyst and COO of Sprengnetter, expects purchase prices for residential properties on the German market to continue to rise overall.

If you would like to know how the value of your property has changed, our DEKRA-certified experts for real estate valuation will be happy to provide you with a free and non-binding market price assessment. Feel free to contact us!

Source: IZ online