Experts’ forecasts for lower housing prices in Germany have worsened as higher interest rates begin to weigh heavily on demand. For the same reason, you should be wary of difficulties in choosing affordable housing on the rental market. The pressure of high inflation and rising mortgage costs is forcing many Germans to continue renting, thereby overheating the market. And taking into account the expected next rate hikes from the ECB, one should not expect inflation rates to drop below the current 9%.
It is expected that average housing prices in Germany will decrease by 5.8% in 2023 and 2.5% in 2024, although 3 months ago many market experts predicted a decrease of 3.5% and 0.5%, respectively. .