By Ed Frankl 
 

Property prices in Western Germany fell on year in almost all districts surveyed, sometimes by more than 10%, according to online real-estate portal Immowelt.

In 82 of 91 urban and rural districts surveyed in the regions of Hesse, North Rhine-Westphalia, Rhineland-Palatinate and Saarland, prices fell in the 12 months to June 2023, Immowelt said.

"The main reasons for the declines are higher interest rates and tighter financing conditions, which have led to a drop in demand," Immowelt General Manager Felix Kusch said.

It comes after the European Central Bank embarked on an unprecedented rate raising cycle, ramping rates up to 3.25% from minus 0.5% in June 2022.

In the cities of Cologne, Frankfurt and Dusseldorf, prices tumbled by 6.3%, 7.6% and 6.1% respectively in the year, Immowelt said.

Meanwhile, ten districts reported double-digit declines in prices, including the cities of Koblenz and Speyer on the banks of The Rhine.

"Property prices are currently falling in all regions of Germany," Kusch said.

"But this also offers opportunities for buyers: because of lower competition, renegotiations on price are becoming more and more common," he added.

Write to Ed Frankl at edward.frankl@wsj.com

(END) Dow Jones Newswires

June 06, 2023 10:04 ET (14:04 GMT)