Turnaround on the real estate market: condominiums are becoming cheaper in real terms

DAccording to a study, the long-standing boom in the German housing market cooled off in the first half of the year. The offered purchase prices for condominiums increased according to an analysis by the major broker Jones Lang LaSalle (JLL) in the eight largest German cities by an average of 7.5 percent compared to the same period last year.

The increase was halved compared to the previous year, according to the analysis published on Wednesday. The five-year average of plus 9.3 percent was therefore clearly undercut. If one calculates the inflation of 7.6 percent in Germany recently, are condominiums actually slightly cheaper today than a year ago.

The rise in prices in the urban districts has slowed down even more significantly than in the large cities. There, the increase was 6 percent in the first half of the year – after 14.4 percent in the previous year and 10.4 percent on average over the last five years.

In the countryside, the price increase remains the same

In the rural districts outside the cities, however, the prices for condominiums rose by 9.4 percent, similar to the previous years. “In particular, the significant increase in financing interest since the fourth quarter of 2021 is the reason for the reluctance of apartment buyers and the associated weakening of purchase price increases,” explained JLL expert Sebastian Grimm.

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