The party is over for real estate in Germany - as new data on transactions from the fourth quarter of 2022 clearly shows. The cause is the sharp rise in interest rates, which are now not only putting pressure on real estate prices, but above all causing the costs for potential buyers to rise sharply.
It is no coincidence that demand for construction financing has cooled sharply among private home builders and has now fallen back to the level seen in 2011; the commercial sector is also recording heavy losses, as Bloomberg now reports.