The German real estate market is realigning: the years of widespread price booms are over, and construction costs remain high. Anyone buying an apartment or house today must look more closely at demographics, economic strength, and the prospects of the entire region. The Postbank Housing Atlas, prepared by the Hamburg Institute of International Economics (HWWI), provides a forecast through 2035 for all 400 cities and districts. The study is available to Handelsblatt in advance.
The analysis shows old losers and new winners. While some regions must expect real price declines, others can hope for stable or rising values. Key factors include population trends, the labor market, and attractiveness as a place to live. Particularly in structurally weak areas with shrinking populations, value losses are looming.
A practical example: In St. Peter-Ording, young families were awarded a municipal leasehold plot to create affordable housing. But some of them backed out – they could not secure financing. The coastal resort is not alone with this problem. The study aims to help buyers make smart long-term decisions.
Source: www.handelsblatt.com
