Berlin housing market

Falling prices for residential real estate in East Germany

Residential properties in eastern Germany are taking longer and longer to find buyers, while prices are falling at the same time.

According to a recent study by Wüest Partner, purchase prices would have to fall even further for more deals to be made. There are strong regional differences: While rents in Berlin increased by 21.2% from the average value for 2022 to the first quarter of 2023, the prices for condominiums fell slightly by 0.5%. In Cottbus, purchase prices fell by 8.2% and in Jena by 9.6%. Overall, the asking prices for condominiums in 17 of the 20 eastern German cities surveyed fell, in some cases significantly. At 10%, the highest gross initial returns are achieved in Dessau-Roßlau and Plauen, while Berlin, Dresden, Leipzig and Potsdam range between 3.7% and 4.1%. Rents increased in 14 of the 20 cities.

Source: TD