The number of apartments on offer in Munich has recently decreased slightly The IVD market research institute analyzed the development of the supply of residential properties for sale (condominiums and houses) in the southern German state capitals of Munich and Stuttgart in a comparison of the German real estate metropolises (“Big 7”) in December 2021, 2022 and 2023.

“The new reality on the real estate market with the significantly increased construction financing conditions and less favorable conditions for prospective buyers represents a major purchasing hurdle in the German BIG 7,” says Prof. Stephan Kippes, head of the IVD market research institute. “The buying market has slowed down significantly. The downward price corrections were only able to partially compensate for the rapidly increasing financing costs. A larger supply of properties and longer marketing times are the consequences of this trend reversal in the residential property market.”

In the December comparison between 2021 and 2023, the purchase offer increased by +31% on average in the BIG 7. Among the real estate metropolises, the NRW cities of Düsseldorf (+67%) and Cologne +(55%) stand out with a supply of properties for sale that has increased by more than half. Hamburg and the southern German state capitals of Munich and Stuttgart are in the average ranking with almost a third more offers (between +28 and +30%). With +19%, Berlin ranks in the lower middle of the BIG 7 in terms of the increase in property supply. In Frankfurt, however, a reduction in the supply of properties has been identified.

While the number of property offers in Stuttgart has grown steadily since the trend reversal in the residential real estate market began in summer 2022, fewer offers have recently been counted in Munich. This can be attributed to various factors: Property owners who do not have to sell still hold onto their property with the hope of selling it at a higher price at a later date. In addition, prospective buyers are getting used to the changed situation: solvent buyers find a large selection of residential properties and take them, while buyers who rely on external financing are somewhat more likely to be willing to accept the high interest rates if there are good offers take.

Source: IVD South


Realwert-Bayern

Realwert-Bayern