The Volksbanken expect prices to decrease in many regions for real estate.
Bank representatives from cooperative banks expect mostly declining prices for houses and apartments in many regions of Germany in the coming months. According to a survey, 71 percent of the executive boards of Volks- and Raiffeisenbanks of the Cooperative Association anticipate a mostly slight decrease in prices for residential properties in their respective regional markets in the second half of the year.
The Cooperative Association, headquartered in Neu-Isenburg near Frankfurt, represents institutions in all federal states except Bavaria and Baden-Württemberg.
Für 2024 geht fast die Hälfte der Befragten davon aus, dass die Preise weiter zurückgehen werden. Allerdings sind für das kommende Jahr wieder deutlich mehr der Vorstände der Ansicht, dass die Immobilienpreise konstant bleiben (37 Prozent) oder leicht anziehen werden (13 Prozent).
„The Chairman of the Cooperative Association, Ingmar Rega, interprets the results as a net formation of a base in the real estate market. In this scenario, the current level of long-term loan interest rates would become the market standard.“
The high construction costs are slowing down new construction.
The executives of the 229 institutions participating in the survey express pessimism regarding the financing of new construction projects. The majority (73 percent) expects a slight or significant decline in 2023 and 2024 (63 percent). „In addition to the interest rate turnaround, significantly higher construction costs are also a factor,“ Rega explained, interpreting the results. „To stimulate new construction, bureaucratic obstacles should be reduced.“
The recently increased interest rates on loans make the financing of real estate more expensive. „Customers must have a good creditworthiness and, above all, sufficient equity, especially under the current conditions,“ said Rega. Those who contribute more of their own money usually get a slightly cheaper loan.