Houses and apartments in Germany have become more expensive by more than ten percent for the fourth quarter in a row. However, the price increase appears to be slowing down somewhat.

In the period from January to March 2022, prices for residential real estate rose by an average of 12.0 percent compared to the same period last year, as the Federal Statistical Office announced on Friday based on preliminary figures. The rate of increase within one year was over ten percent for the fourth time in a row.

Compared to the previous quarter, apartments and detached and semi-detached houses rose by an average of 0.8 percent. “This indicates a slight weakening of the momentum,” said the Wiesbaden authority.

In the third quarter of 2021, prices for residential real estate rose by 4.1 percent and in the fourth quarter of 2021 by 3.1 percent compared to the respective previous quarter. Advertisements for residential properties for sale are now online longer than in the previous year because it is more difficult for sellers to find buyers, it said.

Instead, significantly more people are looking for properties to rent again. “These developments could have a dampening effect on price developments in the medium term,” said ImmoScout24 Managing Director Gesa Crockford.