According to a recent study by Wüest Partner, purchase prices would have to fall even further for more deals to be made. There are strong regional differences: While rents in Berlin increased by 21.2% from the average value for 2022 to the first quarter of 2023, the prices for condominiums fell slightly by 0.5%. In Cottbus, purchase prices fell by 8.2% and in Jena by 9.6%. Overall, the asking prices for condominiums in 17 of the 20 eastern German cities surveyed fell, in some cases significantly. At 10%, the highest gross initial returns are achieved in Dessau-Roßlau and Plauen, while Berlin, Dresden, Leipzig and Potsdam range between 3.7% and 4.1%. Rents increased in 14 of the 20 cities.

Source: TD