Real estate prices in Bremen rise again: What buyers need to know!

Real estate prices in Bremen rise again: What buyers need to know!

In the past few months, a lot has happened on the real estate market in Bremen. As the Weser-Kurier , Michael Eilers, the private customer board of the Commerzbank Bremen, is concerned about the Developments. After a strong increase in interest rates in 2022, which surprised many buyers, the demand for real estate purchases could now attract again. In autumn in particular, experts expect an increase in demand for construction loans.

The interest policy of the European Central Bank (ECB) plays a crucial role in this. The ECB has currently reduced the key interest rate three times this year, most recently from 3.5 % to 3.25 %. Maison Immobilien explains that this reduction has already contributed to a better market constitution. A decline in construction interest has significantly increased the demand for real estate.

The effects of interest changes

Despite this positive development, the effects of the previous interest increase are still noticeable. Many new construction projects have been delayed or were not realized at all. Eilers emphasizes that a survey by YouGov shows that around a third of Bremen is interested in buying real estate. Nevertheless, there is great uncertainty: 71 % of the respondents consider the current real estate prices too high, and almost a quarter cannot buy in the near future.

The uncertainties on the market are also part of the complex interaction between key interest rates and construction finance interest. According to Dr. Klein react time delayed to the changes in the key interest rate. These are strongly influenced by supply and demand on the capital market. Despite the reduced interest rates, buyers should make sure to secure a financing commitment in advance and ideally to have equity of 20 to 30 % of the purchase price.

market trends and survey results

An exciting knowledge from the YouGov survey is that almost half of the respondents are satisfied with their current living situation, but would like improvements. 25 % of the respondents state that they would like to have a balcony or garden or even want to move to the country. Despite an increased interest in sustainable buildings and energetic efficiency, the survey shows that only a third of the participants consider sustainable loans to be important.

Overall, it can be stated that developments on the real estate market in Bremen and the surrounding areas continue to depend on the interest rate policy of the ECB and the reactions of the market. While interest rates are falling, prices could increase again, which presents potential buyers with challenges and restricts their possibilities in real estate financing.