Apartments and houses in Germany have risen in price for more than 10 years in a row, but the trend changed in 2022, after the European Central Bank began rapidly raising interest rates in an attempt to contain inflation. This triggered the most serious crisis in the country's real estate market in recent decades.
Despite the positive changes, experts' forecasts are still restrained.
"Fewer families can afford to buy real estate than 10 years ago.Prices will continue to rise slightly, but we do not expect a new boom," says Martin Goeth, an economist at LBBW Research. Germany, Europe's largest economy, is facing a housing shortage. The situation has worsened due to the recent economic downturn, which has caused a slowdown in construction and rising rents. Recall that more than half of the residents rent housing - this is the established tradition of German society.
Last week, the German parliament approved the government's plans to extend rent controls to make apartments more affordable.Source: The Reuters
