Growth in real estate prices in Germany will continue despite the pandemic and the falling economy of the country, experts predict the German real estate agency. “The housing market in Germany is surprisingly stable,” says Landesbank Hessen-Thüringen real estate expert Stephan Mitropoulos.
No downturn, he says, is expected, just a slight slowdown in growth: apartments and houses will rise by about 4 percent in 2021 instead of 5 to 6 percent. Growth factors in German real estate prices will persist in 2021.
A global slowdown in economic activity, rising unemployment and falling incomes had previously been expected to end Germany’s multi-year real estate boom. However, in the third quarter of 2020, real estate in Germany rose 7.8 percent from the same period the previous year, according to the German Federal Statistical Office.
Experts at the GEWOS Institute for Urban, Regional and Housing Studies point out that the factors influencing price increases remain:
Demographics, which keep demand for housing high;
Shortage of land for construction;
low interest rates;
lack of alternative investment opportunities in the face of volatility in other markets.