Real Estate Price Development in May 2025
The Europace House Price Index (EPX) recorded a positive development in May 2025, observable across all real estate segments. This increase in prices has significant implications for private investors. Here are the key changes in the individual segments:
- New Single and Double Family Homes: Prices increased by 0.57 percent, and the index climbed to 239.39 points.
- Existing Single and Double Family Homes: An increase of 0.63 percent was observed here, bringing the index to 199.27 points.
- Condos: Prices increased by 0.40 percent, and the index rose to 217.09 index points. Year-on-year, this represents an increase of 3.71 percent.
Importance for Private Investors
Rising prices can significantly influence the market environment and investment decisions. The following factors are crucial for private investors:
- Demand Surplus: The ongoing demand surplus makes real estate an attractive investment option.
- Inflation Hedge: Real estate is particularly sought after as an inflation hedge in times of rising prices.
- Interest Rate Situation: Despite a reduction in the key interest rate by the ECB, no significant relief in construction interest rates is in sight.
Market Forecasts
The rise in real estate prices signals the potential for further price increases. Over the last twelve months, the indices for condos as well as single and double family homes have risen by 2.83 percent. Private investors should incorporate these trends into their investment strategies.