“But the boom times are over,” sums up the HWWI researcher. On average across all regions, the price drop compared to 2021 was minus 0.7 percent after adjustment for inflation. In 2021, the real increase was 14.2 percent, compared to 9.6 percent the year before. Higher interest rates, a sharp rise in inflation and stagnant demand at a high level determined the real estate market in Germany in 2022.
“The phase in which prices for condominiums climbed to unimagined heights is over for the time being. Prices are currently stagnating or falling in view of a slight drop in demand as a result of rising interest rates and higher living costs,” says Achim Kuhn, Head of Customer and Product Management and thus also responsible for Postbank’s real estate business.
But the distribution is very different. There is also movement in the ten most expensive and cheapest districts.