Munich (dpa / lby) - In 2022, the rise in interest rates and inflation led to the end of the long-standing boom on the Bavarian real estate market. Real estate sales fell by 8.7 percent to 65.7 billion euros compared to the previous year, as the real estate association IVD Süd announced on Wednesday in Munich.
IVD market researcher Stephan Kippes attributed this to more expensive financing, stricter bank lending and the increased inflation rate. Although the long-standing phase of inexorably rising real estate prices has come to an end, the IVD specialist is currently not observing any increased interest in buying.
"Although the perpetual price rally on the residential real estate market has come to an end in the medium term and buyers could take advantage of stagnating, if not falling, purchase prices, the fear of interest rates has so far slowed them down significantly when buying real estate," said Kippes.
According to the IVD, nationwide real estate sales fell a little less sharply last year by 6.7 percent to 329.4 billion euros. The figures are based on extrapolations from the real estate transfer tax receipts from the tax authorities.
