Market recovers: Stability of real estate prices in Hamburg 2024

Market recovers: Stability of real estate prices in Hamburg 2024

Good news for buyers and sellers on the German residential property market! After a decades of downward trend, there is finally a bright spot. The demand for houses and apartments is increasing, while the inflation rate decreases and the construction financing interest remains stable. In the second quarter of 2024, the nationwide average price for condominiums is EUR 3,822 per square meter - that is 7.8 percent less than 2022, but the worst price returns have been stopped for the time being!

According to the brand new 'residential property market report Germany 2024/2025' from Engel & Völkers, there are positive signals that give the markets new impetus. "2024 ended the negative trend of the past two years. Although the prices do not return to the highest levels from the past, we are experiencing a noticeable recovery from the growing buyer," says Till-Fabian Zalewski, CEO by Engel & Völkers D-A-Ch.

regional differences and price stability

Not everything is the same! While some cities are blooming, there are still declines in others. Especially in cities such as Kassel, Bochum or Lübeck, prices for condominiums rose by more than 4 percent. At the same time, cities such as Düsseldorf and Nuremberg were felt by over 4 percent price corrections.

, however, Munich remains the absolute price elite, with an average offer price of a proud 1.29 million euros for single-family houses. Despite a slight decline, the city continues to keep the crown with a square meter price of 8,715 euros. Hamburg and Frankfurt follow the seal with prices of 6,205 euros and 6,182 euros per square meter.

challenges of energy efficiency

In 2024, energy efficiency is of central importance. The pressure on real estate that complies with energetic standards is increasing, and the renovation must be a priority. Many owners are faced with the difficult decision: high investments in renovations or the sale before the prices decrease even further.

In addition, the structural permits in the first half of 2024 fell by 21.1 percent! The construction preparations cannot cover the increasing need for living space. Single -family houses are particularly affected that have to record a decline of 30.9 percent. In urban areas such as Berlin and Frankfurt, the situation is becoming increasingly tense because the vacancy rate is only less than 0.5 percent.

The development of rental prices can serve as a indicator for housing prices. With an increase of over 6 percent to 9.76 euros per square meter in the first half of 2024, real estate as an investment is becoming increasingly attractive. Increasing rents and falling purchase prices make many investors listen to and show great interest in the real estate market.

The prospects for the rest of the year are positive! Experts expect the stabilization of the market to continue, especially in coveted layers. The coming years promise both challenges and opportunities, and Zalewski is optimistic about developments until 2025.