It could be the turning point for the housing industry, according to analyst statements. Tobias Just, professor at the International Real Estate Business School (IREBS), summarized the past few months in an interview with Immobilien Zeitung: “Residential construction has actually collapsed significantly since the rise in interest rates, and prices have slipped somewhat. But the picture of the perfect storm doesn't get any more correct with each further repetition.” This can be attributed to demographic drivers, solid demand, dwindling inflation risks and stabilizing purchase prices. According to Empirica, purchase prices for new condominiums stabilized with slight increases in the third quarter compared to the previous quarter. ImmoScout 24 also states that average price increases of 0.2 to 0.3 percent were observed across Germany for both new buildings and existing buildings and that demand increased in the third quarter. Only the evaluator Sprengnetter stated a minus of 1.1 percent for Berlin condominiums, which in fact amounts to a sideways movement. The article concludes with praise for the readjustment of the previous decisions at the housing construction summit and sees this as a further opportunity for the housing construction industry.
Comment from Julia Thamm
What many experienced market participants have rightly argued against the crash prophets since last year is slowly becoming true: the real estate market moves in cycles, but the residential segment in particular is extremely resilient and structurally robust. It was a matter of time before prices stabilized again, as residential property remains the key building block for many investors. The situation is currently much clearer and more positive - and offers opportunities for investors. Anyone who is one of the few market participants to continue to create new, green living space will have little competition when it comes to successful sales in the coming years.
Branch manager of
d.i.i. Homes RheinMain