“End of the crisis is foreseeable”
Shortly before buying a house? That’s why you should strike now
22.09.2025 – 12:23 p.m.Reading time: 3 min.
The property rate in Germany is the lowest in all of Europe. For many, the dream of home remains: a dream. Politics could change that.
In Germany, the framework conditions for the purchase of a property are slowly improving. In the summer of 2022, interest rates for the purchase of real estate were sneaked to over 4.5 percent after only knew one direction for a decade: down. However, the situation has been improving for several months. And politics talks about the possibilities of facilitating real estate acquisition.
Anyone who takes up a real estate loan today can adjust to an interest level of an average of 3.6 percent with a ten -year binding according to data from Interhyp. This is still well above the low interest rate from the 2010s, but it is a clear improvement. This is also evident in the order books of the housing industry: In July there were 30 percent more orders for housing construction than in the same month. Especially with single -family houses, it went up: 15 percent more building permits were granted.
The new figures showed “that the prospects of the construction industry are increasingly improving,” said the scientific director of the Institute for Macroeconomics and Business Consolation Research (IMK) of the Hans Böckler Foundation, Sebastian Dullien. “The end of the crisis is now foreseeable.”
An improvement in the German housing market is also evident in the affordability indicator of the Organization for Economic Cooperation and Development (OECD). For its indicator, the OECD compares the living and rental costs with the housing prices and then determines a value that is intended to map the affordability of a property. The higher the value, the more difficult it is to buy a house in the country. This value for Germany has been falling continuously for 2023 and has approached the long -term average bit by bit.
The Hamburg Gewos Institute for City, Regional and Living Research also expects this development. In 2025 there will be significantly more purchases of apartments, homes and building land. “The retention of buying on the German real estate market gradually dissolves, especially private buyers return to the market,” writes Gewos-Immobilien expert Sebastian Wunsch. In potential buyers, trust is growing to be able to manage real estate financing, says Wünder. In addition, some people gave way to residential property because of their high rents.
