Kevin Rader: Current forecast for real estate prices

Interest rate trends, real estate prices and why now is a good time to buy

Developments on the interest rate and real estate market in Germany have seen considerable fluctuations in recent years. After a continuous rise in property prices between 2009 and 2022, there were slight declines in 2023 and 2024. However, experts are forecasting a moderate increase in property prices of around 3.5% again in 2025.

This development will be significantly influenced by the monetary policy of the European Central Bank (ECB). After years of interest rate hikes to combat inflation, the ECB made a U-turn in 2024 and lowered its key interest rate from 4% to 3%. A further reduction to around 2.5% is expected by the end of 2025. This reduction in key interest rates will lead to cheaper mortgage loans, making the purchase of property more attractive again for many.

Despite falling interest rates, construction costs remain high due to increased material prices and a continuing shortage of skilled workers. Material costs for wood, steel and insulation materials have risen by an average of 25% since 2020, making construction projects even more expensive.

Nevertheless, the current market offers opportunities for buyers. In recent years, property prices in Germany have risen again for the first time in two years, particularly in the top seven metropolitan areas such as Berlin, Hamburg and Munich. Between April and June 2024, prices rose by an average of 1.3% compared to the previous quarter. This trend indicates a stabilization of the market, which offers potential buyers security.

Leipzig's real estate market deserves special attention. Leipzig has developed into one of the most sought-after real estate markets in Germany in recent years. The city is growing continuously, offers attractive purchase prices with high potential for appreciation and is experiencing rising demand for residential space. This is a particularly interesting combination for investors, as Leipzig combines economic stability, a high quality of life and solid yield opportunities.

Kevin Rader, Managing Director of the Rader Group, emphasizes the attractiveness of the Leipzig market: "Leipzig is growing - a real estate market with a future. The growing population and high demand for residential space offer investors attractive opportunities."

The Rader Group, headed by Kevin Rader, specializes in the purchase and refurbishment of residential properties and focuses on sustainable value enhancement concepts. Kevin Rader plans to sustainably expand the portfolio in Leipzig and continue to invest in the trade fair city.

Another advantage of buying real estate in Leipzig is the comparatively low entry-level prices. While prices per square meter of over EUR 10,000 are not uncommon in cities such as Munich or Frankfurt, the average purchase price in Leipzig is currently around EUR 3,800 per square meter. These moderate prices allow investors to invest less capital while at the same time enjoying high potential for value appreciation.

In addition to the financial aspects, purchasing a property for owner-occupation in Leipzig also offers personal benefits. Owners enjoy individual freedom of design and benefit from the city's high quality of life. Owning your own property also serves as a solid pension plan and offers financial security in retirement.

In summary, it can be said that the current market conditions, in particular the falling interest rates and moderate property prices in Leipzig, offer a favorable opportunity to purchase real estate. Kevin Rader, Managing Director of the Rader Group, continues to see great potential in Leipzig and recommends that investors take advantage of the current opportunities.

Rader GmbH
Am Alten Bahnhof 2
06686 Lützen
Germany

As a regional partner for real estate, the Rader Group is deeply rooted in the real estate sector. Led by Managing Director Kevin Rader from Leipzig, the company is committed to the development of needs-based, modern living space in Leipzig and the surrounding area. The long-term, sustainable portfolio of properties is at the heart of the strategic focus. With a view to the future and growth, the company strives to constantly acquire and develop new properties for its long-term portfolio.

This release was published on openPR.