Residential real estate market Germany

"In the owner-occupied residential property segment in particular, a decline in purchase prices has been observed in the past two quarters. From Q2 to Q3 2022, prices for single-family homes fell by 3.0% and for condominiums by as much as 4.0%. The rise in interest rates, as well as the existing political and economic uncertainty, are causing a shift in the markets. Buying a home is becoming more difficult for large sections of the population. This may result in increased demand for rental apartments in the future. In combination with the current reduction in construction activity, this may lead to excess demand, which could ultimately lead to significant increases in rent levels, making this an attractive time to enter the German residential real estate market for investors with strong capital resources."