Property bargains at reduced prices: best locations to invest in 2025
Homes on the Rise: Smaller Cities Shining Amid High Mortgage Rates
Many Germans are still keen on buying a home, despite the high mortgage rates. That's the gist of a report from "Handelsblatt."
The Postbank study paints a rosy picture for many regions in Germany by 2035, predicting moderate price increases. Intriguingly, smaller cities like Leipzig and Dresden are tipped to witness impressive value surges, whilst larger cities appear to hit a plateau.
Now, you might wonder what's driving this shift. Well, it turns out that smaller cities are goldmines for property investors. In particular, Leipzig has seen a whopping 8.9% increase in apartment prices since its lowest ebb, signalling a thriving real estate market there. Dresden, on the other hand, experienced a slight 0.9% dip in Q1 of 2025, but this could be indicative of a market stabilization process.
Meanwhile, cities such as Cologne, Stuttgart, and Berlin lead the way in soaring real estate prices across Germany, with Cologne taking the top spot with a 3.4% increase in Q1 of 2025.
Predicting future price trends involves considering economic conditions, urban versus rural divides, market dynamics, and investment and demand. Economic stability and growth, high demand in urban areas due to limited supply, increased transactions, and persistent recovery in major cities are some key factors.
Bottom line? While larger cities like Cologne, Stuttgart, and Berlin are set to continue their upward trajectory, moderate growth is anticipated in smaller cities like Leipzig and Dresden as they continue to attract investment. However, the exact extent of these increases will depend on broader economic and demographic trends.
Here's a snapshot of how things might look by 2035:
| City | Current Trend | Predicted Trend by 2035 ||-------------|--------------------------|--------------------------------|| Leipzig | Strong recovery | Moderate price increases || Dresden | Stabilizing prices | Potential for moderate growth || Major Cities| Significant price increases| Continued strong growth |
- Even with the high mortgage rates, the interest in buying homes among Germans is still apparent, as suggested in the report from "Handelsblatt."
- Despite the slight dip in Q1 of 2025, Dresden might witness moderate growth in real estate prices by 2035, just like Leipzig, as they are attractive investment opportunities for property investors.
- While
- Recently, GDPR regulations might have an impact on the data flow and investments in the real estate market, raising questions about the availability of resources and the future of investing in properties.
