The German housing market, which has been experiencing a crisis for the past two years, will regain lost ground this year due to further interest rate cuts by the European Central Bank, but there is a significant risk that price growth will not meet forecasts. This is the conclusion reached by experts interviewed by Reuters. A total of 13 German real estate market analysts took part in the survey.
According to their forecasts, housing prices will rise by 3.5% in 2025. But the figure may be lower due to political and economic changes.
"The ongoing uncertainty in economic policy caused by the German elections and the potential impact of the US administration's economic policies are having a negative impact on consumer confidence," said Carsten Brzeski, head of macroeconomics at ING. "Consequently, investment decisions are likely to be delayed until the uncertainty decreases.Therefore, we also do not expect a significant increase in housing prices.Source: Investing
