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

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

A lot has happened on the real estate market in Bremen in the last few months. Again Weser courier reports, Michael Eilers, the private customer director at Commerzbank Bremen, expressed concern about the developments. After a sharp rise in interest rates in 2022, which surprised many buyers, demand for property purchases may now be picking up again. Experts expect demand for construction loans to increase, especially in autumn.

The interest rate policy of the European Central Bank (ECB) plays a crucial role. The ECB has currently lowered the key interest rate three times this year, most recently from 3.5% to 3.25%. Maison real estate states that this reduction has already contributed to better market conditions. A fall in building interest rates has significantly increased demand for real estate.

The impact of interest rate changes

Despite this positive development, the effects of the previous rise in interest rates are still being felt. Many new construction projects have been delayed or not realized at all. Eilers emphasizes that a survey by the company Yougov shows that around a third of Bremen residents are interested in purchasing real estate. Nevertheless, there is a lot of uncertainty: 71% of respondents think current property prices are too high, and almost a quarter cannot afford to buy in the near future.

The uncertainties in the market are also part of the complex interaction between key interest rates and mortgage lending rates. Loud Dr. Small Building financing interest rates react to changes in key interest rates with a time delay. 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 have equity of 20 to 30% of the purchase price.

Market trends and survey results

An exciting finding from the Yougov survey is that almost half of those surveyed are satisfied with their current living situation, but would like to see improvements. 25% of those surveyed said they would like to have a balcony or garden or even move to the country. Despite increased interest in sustainable buildings and energy efficiency, the survey shows that only a third of participants believe sustainable loans are important.

Overall, it can be said that developments on the real estate market in Bremen and the surrounding areas continue to depend on the ECB's interest rate policy and the market's reactions. As interest rates fall, prices could rise again, creating challenges for potential buyers and limiting their property financing options.