The forecasts for the real estate market and real estate interest rates in Germany for 2024 are varied and depend on various factors.
Let's start with the real estate market. Deutsche Bank has predicted in an analysis that the real estate bubble could burst in the not too distant future. The end of the boom is predicted quite clearly for 2024. The reasons for this trend reversal are manifold: many new builds will be completed by 2024, which could ease the extremely tight supply of residential real estate. In addition, population growth is expected to slow down. However, experts assume that prices for residential real estate in Germany will only fall temporarily.
As far as property interest rates are concerned, it is very likely that they will continue to rise in 2024. It is expected that the interest rate spread for a 10-year property loan will be between 4 and 4.5 percent. This could lead to an increase in the sale of properties as the cost of loans rises and may no longer be covered.
However, it is important to note that these forecasts are based on current data and assumptions and may change due to unforeseen events or changes in economic policy. It is therefore advisable to always consult a financial advisor when making investment decisions.
In summary, it can be said that both the real estate market and property interest rates in Germany will certainly undergo changes in 2024. While property prices are expected to fall, property interest rates are likely to rise. These developments could present both opportunities and challenges for investors and homebuyers.
