Housing market: High construction interest rates: Demand for real estate is cooling down
Whether it's a house or an apartment: many people want to own their own four walls. But sharply rising construction interest rates are ruining the plans of many people. And loans could become even more expensive.
The German real estate market is expected to cool down this year, with a significant decline in demand due to rising inflation concerns and increased construction interest rates. According to the Gewos Institute for Urban, Regional and Housing Research, the number of residential property purchases is predicted to drop to around 612,000, a 4.4% decrease from 2025.
The total value of residential property transactions is expected to fall by 2.0% to approximately €211 billion. The decline is attributed to various factors, including the Iran war, rising construction prices, and stricter bank lending.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
