How real estate prices have developed in Düsseldorf
12/02/2024 · Autor: Marius Grumbt
According to the analysis by the Berlin-based consulting and research institute Empirica, asking prices for properties in 2023 have continued to fall on a quarterly basis, with the exception of the small market for new detached and semi-detached houses. The study is based on real estate data from over 100 sources and shows a continuous decline in the prices of existing homes listed in advertisements since the beginning of 2022. For used homes older than ten years, this decline has been recorded since the second quarter of 2022.
An interesting observation from the analysis by the German Economic Institute is that property prices in the ten largest cities have nowhere fallen as much as in Düsseldorf, namely by 1.9 percent between the third and fourth quarters of 2023. In contrast, a slight upward trend was observed in most other major cities.
According to Empirica's data, asking prices for existing apartments fell from their peak of 4871 euros per square meter at the beginning of 2022 to 4150 euros per square meter, which corresponds to a decline of almost 15 percent. Prices for pre-owned houses also fell, by just under 14% from EUR 6465 per square meter at the end of June 2022 to EUR 5573 per square meter.
The figures from Empirica also show that although new-builds have fallen slightly in value, they have recently been sold much less frequently. The price of new-build apartments fell by just under three percent from EUR 7282 per square meter in September 2022 to EUR 7065 per square meter. The most recent price level for new-build houses was 5916 euros per square meter, compared to 6567 euros per square meter at the beginning of 2022, which corresponds to a decline of ten percent.
A comparison over a longer period of time clearly shows that prices are still at a high level. Five years ago, existing apartments were 18 percent cheaper, and ten years ago the price difference was even more than 40 percent. This means that prices have risen by almost 70 percent in this period. A comparison with the average value of the seven largest cities in Germany, which is 25 percent higher, makes it clear that real estate prices in Düsseldorf are significantly higher. In addition, the price trend in Düsseldorf shows a steeper curve than the average value of the other cities.
According to Empirica, there is still no stopping rents. In the fourth quarter of last year, the limit of twelve euros per square meter cold rent for existing apartments was even exceeded. For more than two years, asking rents have been rising continuously, by a total of more than twelve percent.
On Immoscout24, the increase is just under 18 percent, reaching 12.36 euros per square meter. Purchase prices are not showing quite as clear a downward trend as Empirica. Nevertheless, quarterly declines in asking prices for existing apartments were also recorded here throughout the year.
An interesting observation from the analysis of the sales portal is that demand, measured in terms of ad impressions, is also increasing again for existing properties for sale. A low point was reached for apartments at the end of 2022, but this figure has since recovered. A similar trend can be observed for existing houses. Nevertheless, the reluctance to buy new builds remains. In addition to the high price level, this could also be due to developer bankruptcies. Rising demand could indicate an end to falling prices. In Immoscout's residential barometer, prices for existing homes are already stable (5493 euros per square meter), while there are even signs of a trend reversal for new builds.
Gesa Crockford, Managing Director of Immoscout, is optimistic. "In view of the lower inflation rate and the more stable interest rate situation, a certain degree of planning security is returning and with it the demand to buy. For many, the dream of owning their own home is coming a little closer again."
There is still a good supply, but this will change from the second half of the year if demand is good. "It is unlikely that prices will fall as noticeably as they did in the second half of 2022." The German Economic Institute also expects prices to stabilize.
Source: RP online
