Munich (dpa / lby) - The times of steeply rising house and apartment prices in the Munich region could soon be over. The real estate association IVD Süd sees an impending trend reversal. A key factor: For a growing number of people, buying a house or apartment in the state capital and its surroundings is too expensive, as market researcher Stephan Kippes reported on Monday. From the autumn of last year to spring, prices rose sharply again.
"In view of the enormous rise in real estate prices and construction costs in recent years and the current rapid increase in interest rates, demand for residential real estate could be noticeably dampened, at least in the medium term, since fewer and fewer buyers can bear the enormous costs," Kippes wrote in a statement.
But there is also an opposing trend: according to Kippe, financially strong investors will continue to invest their money in the real estate market in view of the high inflation.
According to IVD market data, the average price for a detached house in Munich has reached the threshold of 2.2 million euros, in the Starnberg district it is 2 million. House buyers only have to pay less than a million in the Fürstenfeldbruck district. Inflation was still very high: Within six months, price increases in the surrounding district towns ranged from 2.3 percent in Erding to 8.6 percent in Freising.
