In several European countries, there has been a trend of reducing real estate prices for several months, which is interpreted by some analysts as a bursting of the speculative bubble on this market.
Real estate prices in Germany have been falling for four quarters, compared to the amounts recorded a year earlier. In the third quarter of 2023, the reductions reached 10.2%, which was a record since 2000, when statistics began to be compiled according to the current methodology.
One reason for this state of affairs is the difficult access to credit, which is a consequence of the European Central Bank’s interest rate increases. They took place over the past year in order to fight inflation.
Germany’s other economic indicators are also not optimistic. Bundesbank economists initially estimate that GDP shrank by 0.1% in 2023, and its growth this year may reach only 0.4%.
Will it be even cheaper?
Even greater drops in property prices are being recorded in Sweden. There, they are as much as 15 percent lower than last year. Currently, the cost of apartments is the lowest since 2015, and of houses since 2017.
In recent days, the Pekao Brokerage House has published data according to which apartment prices in the seven largest Polish cities last year in real terms (taking into account inflation) they fell by over 6%.