Report from Focus:
Sale of residential houses in Germany has dropped by half
This fits: In May 2022, fewer than half as many residential houses were sold in Germany as the average of the past five years, calculated the British real estate service provider Savills. Demand is declining – the effect on prices is likely to follow immediately.
"All signs indicate that slightly falling prices are to be expected," predicts IW expert Ralph Henge. Experts from the online portal Immowelt also believe that the boom is already coming to an end this year: "The time of large price increases is probably over."
For ten of the 14 German cities with more than 500,000 inhabitants, they expect stagnating to slightly declining purchase prices by December of this year in a current price estimate.
Also Deutsche Bank confident: "Real estate boom will end sooner rather than later"
And Jochen Möbert from Deutsche BankResearch also commits himself: "We are pretty sure that the real estate boom in Germany will end in this decade – and more likely sooner than later."
But the issue is no longer just an economic one. At today’s Real Estate Industry Day in Berlin, it is becoming a political issue. The industry is concerned. And the Minister of Construction is concerned as well.
For Oliver Wittke, CEO of the Central Real Estate Committee (ZIA), a fourfold approach must now follow to make building attractive again: debureaucratization, deregulation, flexibilization, and acceleration. Only in this way can one react to a crisis.
Wittke believes: "If we had tried to rebuild Germany after World War II with today’s building and planning law, we would still be sitting on the ruins today." A general obligation for solar roofs on new buildings, for example, Wittke simply considers to be "nonsense."