As in most countries, real estate prices in Germany have risen in recent years. This raises the question of whether this trend can continue. DZ Bank, one of the largest banks in Germany, has ventured to make a forecast for 2022.
Forecast for the development of real estate prices in 2022
DZ Bank assumes that real estate prices will continue to rise in 2022, but not as strongly as in previous years. While the price increase for 2021 is still estimated at around 11%, the expectation for 2022 is between 7.5% and 9.5%.
Of course, several factors play a role that can slow down the price increase. For example, the government has decided to build 400,000 new homes every year. This reduces the demand for existing properties and thus also the scarcity on the real estate market. In addition, the practice of lenders could change by basing their valuations more on the current property value instead of the market value, which is sometimes 10 to 30% higher. This, too, could have a dampening effect on price development.
Explosively increasing demand for real estate in large German ski areas
As a result of the Corona pandemic, the demand for real estate in the largest German ski areas such as Garmisch-Partenkirchen, Feldberg, Oberstdorf and Winterberg has risen explosively since the beginning of 2020. Due to lockdowns and travel restrictions, the dream of owning a property in a German recreational area has become significantly more attractive for many people.
Between May and July 2021, the number of contact requests for offered properties rose by an average of 68%. This increase in demand naturally also led to rising prices. The strongest price increase was recorded in Winterberg, where price increases of up to 47% were observed for individual properties.
