The sales prices for condominiums, single-family and multi-family houses declined again in 2024 compared to the previous year. The continued drop in prices in the first quarter was responsible for this. Afterwards, a counter -movement began, but it was not strong enough for a positive annual balance. This emerges from a current evaluation of the German Real Estate Index (Greix), a joint project of the expert committees for property values, Econtribute and the IFW Kiel based on notarized sales prices.
Cheaper condominiums
A comparison of the actually achieved sales prices on the German real estate market shows that in 2024 condominiums were traded 1.5 percent more cheaply than in 2023. Single -family houses were 1.5 percent and apartment buildings three percent below the respective last year. Inflation -adjusted – in terms of current purchasing power – the impairment is somewhat larger and are about two percentage points higher.
Compared to their highs in 2022, the prices for condominiums in 2024 were still significantly below with minus 11.4 percent. Inflation -adjusted, the decline is even 18.2 percent. Single -family houses cost 12.9 percent less than the maximum level (adjusted for inflation minus 19.6 percent). The decline for apartment buildings was even more drastic: the sales prices were around 21.6 percent below the highest level in 2024 (adjusted for inflation minus 27.6 percent).
Comparison of the big cities shows different developments
Volatility and uncertainty in Germany’s major cities led to partly opposing annual balance sheets. In Frankfurt, prices for condominiums increased by 3.9 percent compared from 2023 to 2024. In Leipzig, real estate prices went up slightly at 1.5 percent. There were slight declines in Dresden (minus 0.6 percent) and Berlin (minus 1.8 percent). The prices in Munich (minus 2.1 percent) and Stuttgart (minus 3.2 percent) developed more downwards. The strongest decline under Germany’s metropolises was in Hamburg, where prices decreased by 4.9 percent in the previous year.
New real estate was traded significantly more numerous last year (transaction plan of 40 percent). But they still only stand for ten percent of all real estate transactions. In the 2010s, new buildings made between 20 and almost 30 percent of the total sales in the German top 7 metropolises. The newly built properties have shown themselves much more price -stable and hardly lost value in the crisis. The prices for completed condominiums in the top 7 metropolises almost noted on their highs in 2024.
Price decline in existing real estate
In contrast, the price decline in existing real estate. Classic old building apartments that were built before 1950 were traded 2.3 percent cheaper than in 2023. In the case of existing apartments after 1950, prices fell by 1.8 percent. As a result, these sales prices were now around 13 percent below the maximum stalls from 2022.
“On the real estate market, two opposite forces currently have a look at the purchase prices and it remains to be seen that predominates. On the one hand, rising interest rates are pressing on the prices. On the other hand, the lack of housing is particularly large in the cities and the offer is limited,” said Jonas Zdrzalek, real estate expert at IFW Kiel.
