In 2024, however, building interest rates declined overall. (Photo: Freepik, ShadabFatima)
Berlin/Munich/Lübeck – The European Central Bank is in interest rate cutting mode – but market interest rates have been rising since December. Reasons include global risks, Trump’s return and US economic prospects. What does this mean for property buyers and construction loans? The overview.
With the turn of the year, building interest rates also move upwards: up drklein.de The “top interest rate” for 10-year loans is 3.18 percent (effective annual interest rate). It’s a little cheaper check24.de with 2.98 percent. The average interest rate at interhyp.de ranks at 3.40 percent. (As of: 11 a.m.)
Standard rate decreased – demand on the real estate market revived
In 2024, however, building interest rates fell overall – annual low at interhyp.de: 3.14 percent on December 16th. At the end of 2024 Trend indicator from drklein.de a standard credit rate of 1,350 euros per month, with a 300,000 euro loan and a 10-year fixed interest rate. In December 2023 it was still 1,435 euros.
Demand for purchases of single-family homes and apartments increased in the fourth quarter, shows the housing barometer from immoscout24.de. On average, prices are at the level of the previous quarter – although metropolises such as Stuttgart, Cologne and Hamburg are recording increases compared to the previous year.
More real estate investments – new construction will also decline in 2025
Investments in residential real estate are also worthwhile again – the market has picked up speed. In the fourth quarter of 2024, the transaction volume was significantly higher than in previous quarters at 4 billion euros and 34,100 residential units traded, reports Real estate consultancy Lübke Kelber.
The new building remains a bottleneck: This Construction volume in Germany The German Institute for Economic Research predicts that 2025 will see a decline for the fifth year in a row. According to the construction association ZDB, these were last year 250,000 apartments were built – the government target was originally 400,000.
ECB key interest rate and bond interest rates – building interest rate forecast for 2025
The interest rate prospects for 2025 are vague. The European Central Bank did reduce the deposit rate to 3 percent in December. Further steps are foreseeable, but some have already been priced in. The return on investment 10-year federal securitiesreference for building interest, has risen to 2.56 percent.
Many financiers have the beginning of 2025 Loan costs increased or plan to do so. The portal expects 2025 as a whole immowelt.de with building interest rates between 3 and 3.5 percent and – given weak new construction activity – with a moderate increase in property prices.