Dhe prices for German residential real estate increased significantly again in the second quarter, but more slowly than before. From April to June, they increased by an average of 10.2 percent compared to the same period last year, as the Federal Statistical Office announced on Friday. "This means that the rate of change in the house price index compared to the same quarter of the previous year was over ten percent for the fifth time in a row," it said. However, the increase weakened for the third quarter in a row: at the beginning of the year it was 11.6 percent, at the end of 2021 it was 12.6 percent and in summer 2021 it was 12.8 percent. Apartments as well as single and two-family houses also increased in comparison to the previous quarter, by an average of 2.5 percent.
"The greatest price increase was in the sparsely populated rural districts," the statisticians determined. Here, the prices for single and two-family houses increased by 13.6 percent compared to the same quarter of the previous year, and condominiums by 11.7 percent. In the seven largest cities (Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart and Düsseldorf), prices for single and two-family houses rose by 12.2 percent and for condominiums by 10.6 percent. "The price increase was weakest in the urban districts," it said. There, the rate of inflation for houses was 7.8 percent for the first time since the beginning of 2021 in the single digits, while 7.3 percent more had to be paid for apartments than in the same quarter of the previous year.
The Bundesbank has been warning for a long time of increasing dangers on the German real estate market in view of the increasing Prices.
Due to the sharp rise in interest rates - triggered by interest rate hikes by the European Central Bank in the fight against inflation - according to experts, there are signs of a trend reversal on the German real estate market. The demand for real estate for sale in the second quarter fell by 36 percent compared to the same period last year, as determined by the online portal Immoscout24.
As a result, the number of listings for apartments and houses for sale increased by 46 percent, and listings also stayed online longer than last year. Because it is more difficult for sellers to find buyers. This is already causing prices to fall in certain segments.