The Handelsblatt sees prices for residential real estate stabilizing and relies on data from several broker and financing portals. Most recently, Immowelt found that prices fell further in only four of 14 major cities in the first quarter, while four other cities even reported slightly rising prices again. The editors of the Handelsblatt also cite the McMakler and Europace portals with similar tendencies and see “signs that at least an intermediate plateau on the real estate market could have been reached”.
Comment by Tim Lasys
The data is consistent with our own observations. We have noticed a clear bottoming out in sales prices since the beginning of the year. At the same time, the pace of transactions is picking up again. We therefore have reason to hope that the paralysis of the housing markets caused by market uncertainty has ended and that buyers and sellers will come together more and more often. For multi-family homes, where the price decline was greatest, we expect prices to rise again in the next two years. However, we believe that a return to pre-crisis levels is unlikely in the next four to five years.
Head of
Investment Management