Germany's housing market, previously thriving, is now facing challenges. High interest rates pushed buyers to rentals, but 2025 brings optimism with predictions of price rebounds in cities due to falling rates. Experts note factors like sluggish construction and immigration driving demand against limited supply. Recent data indicates a slight rise in property prices in major cities while rural areas decline. This mixed market signals a complex environment for prospective homeowners navigating increased prices and low listings.
In 2025, economists predict a better property market due to falling interest rates and rising demand resulting from a growing population and stagnant construction.
Despite some price increases in urban areas, the housing market remains challenging for buyers as limited listings compound affordability issues.
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