The German real estate market is experiencing mixed trends as prices continue to rise, albeit at a slower pace. Overall, property prices have increased by 0.3% compared to the previous quarter, yet they remain 0.7% lower than a year ago. Rural areas show a decline, with prices dropping by 1.8% from the last quarter and 5.7% year-over-year. In contrast, major cities present a more varied picture. The seven largest cities witness a decrease of 5.3% over the past year and 3.1% from the previous quarter for houses, while apartment prices have risen slightly by 0.5% in the same timeframe.
In the third quarter, residential property prices overall fell, especially in rural regions where the decline reached 5.7% for apartments and 2.1% for single-family homes. Conversely, prices in urban areas have seen a slight increase, with a 2.4% rise for apartments and a modest 0.2% for houses. Notably, the overall price level is 0.3% higher than in the second quarter but remains 1.5% lower than the first.
Additionally, construction costs in
Saxony-Anhalt have increased, affecting both new builds and renovations. The latest statistics indicate a 3.6% rise in building costs compared to the previous year, driven primarily by drainage, sealing, and earthworks. These trends highlight the dynamic nature of the German real estate market, influenced by various regional factors and ongoing economic conditions.
