A key indicator of the state of the German real estate sector, namely, the volume of transactions, probably improved in 2024, but remains close to the lowest level in more than a decade, indicating problems in the sector.
Jones Lang LaSalle (JLL), an international real estate consulting company, predicts that in 2024 the volume of real estate transactions in Germany will grow to 35 billion euros, and in 2025 to 40 billion euros.42 billion euros.
Thus, if the forecasts come true, it will mean that 2023 has become the low point of a serious crisis in Europe's largest economy.However, according to analysts, the recovery will be slow.
For many years, the real estate market in Europe as a whole and especially in Germany has flourished as interest rates have been falling, stimulating demand.A sudden spike in interest rates and construction costs led to the bankruptcy of some developers, as bank financing dried up and transactions stalled.
Germany was the hardest hit by the real estate crisis, which, in addition to Europe, also affected China and the United States.
Source: Investing
