Existing properties more stable in value than new builds in the past quarter

In its quarterly analyses of the German residential real estate market, real estate appraiser Sprengnetter compared the existing and new construction segments. In the past quarter, the prices of new-build single-family homes fell by 1.5%, while the prices of existing properties in the single-family home segment did not change. Prices for condominiums rose in both the new-build and existing-build segments, although the 2.4% increase in prices for existing properties was significantly higher than that of new-builds. As part of the same analyses, the influence of the modernization status of condominiums on the purchase prices realized for them was also examined. When looking at the period from Q3 2022 to Q1 2023, it was clear to see that modernized properties are significantly more stable in terms of purchase price than older properties that have not been modernized.