by Thorsten Koch
The house price index EPX shows an growing trend. In April, prices for condominiums and single-family houses rose by 0.7 percent compared to March. There are no indications of price declines. Compared to April 2019, prices rose by as much as 11.6 percent, the real estate transaction platform Europace announced.
The Empirica Consultancy took on an outsider position. The company believes there will be a decline in home purchase prices, which may then increase slightly again in 2021. There is currently a “healthy sideways movement,” objected real estate expert Klaus Oberfuchshuber from the private bank Merck Finck. Investors paid more attention to the quality and type of property these days. According to a study by Immowelt, an internet portal, prices for existing apartments built until 2016 increased, in 45 of 60 major cities, from September 2019 to April 2020.
The market for prospective buyers of apartments can benefit from the fact that interest rates on mortgages are likely to remain very moderate. In addition, according to Deloitte, housing prices in Germany are less affected by inflation than in the rest of Europe. In Germany, there are currently few rental losses. Vonovia assumes a maximum of 2 percent in rental losses.