22. September 2023

Greix-Decline in apartment prices mainly affects existing stock, new construction prices relatively stable Greix-Decline in apartment prices mainly affects existing stock, new construction prices relatively stable

A comparison of apartment price trends by year of construction in Germany's largest cities reveals a notable pattern: While prices for new buildings have experienced a relatively modest decline from their peak, the value of existing properties has fallen by more than twice as much. This finding comes from a comprehensive data analysis conducted by the German Real Estate Index (Greix), a project of ECONtribute and the Kiel Institute. 

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A recent analysis of the German Real Estate Index (Greix) shows that prices for new apartments in the country's top 7 cities (Berlin, Duesseldorf, Frankfurt a. M., Hamburg, Cologne, Munich, Stuttgart) have experienced a relatively moderate decline of 5.5 percent on average compared to their peak levels.

Beginning in 2018, new building prices saw a robust increase of 45 percent by Q3 2022. This growth slowed to 37 percent in Q2 2023. This means that prices of new buildings in the past quarter roughly matched the levels seen at the beginning of last year.

The slump is much more pronounced for existing properties in the top 7 cities, subdivided into construction years before and from 1950. Prices for both classic old buildings and apartments built after World War II peaked as early as Q2 2022, and for both segments sales prices were down a good 12 percent in Q2 2023. Thus, prices returned to levels seen at the start of 2021.

Greix is financed by public funding and is a project of the Bonn-Cologne Cluster of Excellence ECONtribute, which is funded by the DFG, and the Kiel Institute for the World Economy, in cooperation with the local expert committees. Its aim is to increase price transparency in the real estate market. Different price indices for 18 cities are freely accessible at www.greix.de. Additional cities will gradually be added to the data set.

Detailed information: https://econtribute.de/greix-preisrueckgang-bei-eigentumswohnungen-trifft-vor-allem-bestand-neubaupreise-relativ-stabil/

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