The German real estate market is showing signs of recovery after a challenging 2023. According to the Gewos Institute, the market is becoming more accessible for homebuyers due to falling property prices, lower mortgage rates, and rising wages.

This trend is expected to continue, with a projected 11% increase in residential property sales this year.

However, the market is not expected to return to pre-crisis levels soon.

The stabilization of house prices, particularly in major cities like Berlin and Munich, is attributed to the decline in mortgage rates, which have dropped to around 3.3% for ten-year loans.

Despite these positive signs, the construction sector remains sluggish, with a continued decline in land sales for new homes.

The overall sentiment is cautiously optimistic, with experts predicting a gradual increase in property prices driven by stronger rental dynamics and the prospect of further interest rate reductions.