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A slowing German housing market

Jun 26, 2023

German house prices are down 6.8% in Q1 2023. This is a healthy correction in line with what is currently happening in other European markets. The main reason are higher mortgage costs are taking their toll on demand. Households are also holding back due to economic uncertainties and the political mess around the ecologic transition (see replacement of gas heating systems). Transactions have come to a near standstill. We can reasonably expect further pain for real estate developers and through the whole value chain of the real estate sector.

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