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House prices in Germany fell at a record rate of 6.8 percent in the first quarter of this year, as higher borrowing costs, inflation and weaker economic growth took their toll on the larger property market. of Europe. The year-on-year drop in the German residential property price index was the biggest since records began in 2000, the federal statistics office said on Friday. Falling house prices are the latest sign of trouble in the German residential property market, where house construction is also slowing. Only 21,200 apartments were approved for construction in April, 31.9 percent less than a year earlier. That was the biggest drop since March 2007. However, there were signs that the decline in house prices was slowing, as prices fell 3.1 percent from the previous quarter, a smaller decline than the 4.9 percent drop between the third and the fourth quarter. “Lower demand due to higher financing costs and persistently high inflation are likely to remain the main reasons for the decline in purchase prices,” the statistics agency said.
The German real estate market has gone from a seller's market to a buyer's market, and transactions have almost come to a standstill,” said Carsten Brzeski, an economist at Frankfurt-based Dutch bank ING. “The official Russia Mobile Number List price index is almost a fiction because it is based on very few new transactions.” Franz-Bernd Grosse-Wilde, chief executive of Spar- und Bauverein eG Dortmund, a housing association in the Ruhr city, said uncertainty over new regulations, such as measures to improve the energy efficiency of homes, had made "investments in real estate are unattractive." “People who might have thought about investing in property five years ago are now unsure because they don't know what renovation obligations they will soon face,” he said. Recommended The statistics office said prices fell in the first quarter in both cities and rural areas, although they had fallen more sharply in urban areas.
The biggest declines occurred in Germany's seven largest cities (Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart and Düsseldorf), where prices for single- and two-family houses fell by 10.4% and those for apartments by Prices also fell in sparsely populated rural areas: prices for single- and two-family houses fell by 7.8 percent and those for freehold flats fell by 5.3 percent. Experts said data shows that many Germans can no longer afford to buy a house or apartment, leading to fewer real estate transactions. Mortgage demand has been on the decline since May 2022, although there was a slight recovery in March. The best rate for a new 10-year mortgage worth €190,000 on a property worth €352,000 has increased from 0.43% at the beginning of 2021 to 3.39%, according to Dr Klein, a German mortgage broker . Monthly payments on a typical 10-year German mortgage of 300,000 euros, worth 80 percent of a property, reached 1,505 euros in May, an increase of more than 300 euros from a year earlier, the broker said.
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发表于 2024-3-12 13:34:29