Engel & Völkers Licence Partner Abruzzo Commercial > Blog > Apartment buildings: Trend reversal on the horizon

Apartment buildings: Trend reversal on the horizon

The era of falling prices for multi-family houses is apparently over. After falling slightly but continuously throughout Germany over the past two years, a stabilization can be observed in the major cities in particular. In most of the seven A-cities (Berlin, Frankfurt/Main, Hamburg, Düsseldorf, Cologne, Munich, Stuttgart), Engel & Völkers Research is currently even recording rising asking prices again: The average increase in the top 7 is 0.7 percent.


This trend is most noticeable in Frankfurt/Main. There, a comparison between the 1st and 2nd quarters of 2024 shows an increase of 6.6% in the market for residential and commercial properties. In Hamburg, asking prices rose by an average of 1.1% and in Düsseldorf by 0.8%. 


Interesting investments in simple locations

The average of all German cities still recorded a fall of 0.2 percent in the comparison of asking prices. However, this does not contradict the general price stabilization. While the top 7 cities are generally the trendsetters on the real estate market, smaller locations for real estate investments are always a little slower to catch up. 


Accordingly, simple (peripheral) locations are currently of particular interest to investors. Properties there continue to score points with a low market entry price, often combined with development potential.


Market momentum picks up in the 2nd quarter

Overall, activity on the investment market for residential real estate has picked up again in recent months after a quiet start to the year in many places. Institutional investors are also slowly returning to the market for residential and commercial properties, although private and semi-professional investors continue to account for the majority of market activity. 


Engel & Völkers Research expects the market to continue to pick up in the second half of the year. The turnaround in interest rates initiated by the European Central Bank (ECB) in June and the prospect of further interest rate hikes are grounds for optimism. (25.7.24)


Find out more: Apartment buildings as a capital investment



Contact us now
Engel & Völkers
Licence Partner Abruzzo Commercial
  • Aereoporto D’Abruzzo
    65122 Pescara - Italy
    VAT 02118210687

We know the true value of your property

Do you know how much your property is currently worth? No matter if you just want to inform yourself about the current market-price, or if you wish to sell your property for the best price: our experienced marketing experts are happy to assist you with a free and non-binding valuation.

Follow us on social media