Germany's housing boom is coming to an end, data hints
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Loading... - Jasper Cobus
- 01 Nov 2022
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Rising interest rates, high inflation, an energy crisis, and a lot of global uncertainty are usually not ingredients for a booming market. The German real estate market seems to be finally catching up to realities as the Housing Index in Germany decreased to 222.97 points in August.
The German property market has been growing without interruptions since 2009; however, according to a new report by the Hamburg-based Gewos Institute for Urban, Regional, and Housing Research, this period of rapid growth could end. The Institute expects a 7% drop in commercial real estate and land sales this year, making up roughly €315.5 billion ($308.10 billion).
Meanwhile, Welt’s Holger Zschaepitz proclaimed the German housing boom is over, showing a chart of Germany’s major real estate lender, Hypoport group, shares plummeting 34% after they suspended their full-year forecast.
Post-Covid boom
On the other hand, Gewos believes that prices will not drop since the pressure on German housing remains high due to strong immigration, but new construction will be halted due to rising credit and energy costs. Read More...
