2024-02-03 18:57:52
View from the Eden Tower of the Grand Tower (l) and the construction site of “The Spin” with the Frankfurt skyline in the background. Image: Lucas Bäuml
Inflation and building interest rates are falling, and the purchase prices are comparatively low. But the big recovery is still a long way off.
The times of the great real estate boom in Germany are long gone. The current edition of Bulwiengesa’s real estate index for the past year shows how much the conditions have changed. For the first time in 18 years, no increase in the index was recorded, according to the industry’s independent consulting and analysis company. Rather, we now have to report on stagnation, price declines and crisis-hit project developer markets.
The real estate index takes both rents and purchase prices into account and analyzes the development of the real estate market in Germany since 1975. Since 1990, the basis has been real estate prices in 125 cities. For 2023, the overall index shows a change of exactly 0.0 percent, after rising by 4.6 percent in the previous year. Although the increase had been declining since 2017, the decline is clear. The last time there was a similar sharp decline was in 1994.
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