Germany’s housing market, which has been in crisis for the past two years, will recover lost ground this year thanks to further interest rate cuts by the European Central Bank, but there is a significant risk that price growth will not meet expectations, according to experts polled by Reuters.
A total of 13 German property market analysts took part in the survey.
They forecast that house prices will rise by 3.5% in 2025. But the figure could be lower due to political and economic developments.
“The ongoing economic policy uncertainty caused by the German elections and the potential impact of the US administration’s economic policy are having a negative impact on consumer confidence,” said Carsten Brzeski, head of macroeconomics at ING.
“Investment decisions are therefore likely to be postponed until the uncertainty subsides. We therefore do not expect a significant increase in house prices either.”
