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 price increase has significant implications for private investors. Here are the key changes in the individual segments:
- New Single and Multi-Family Homes: Prices rose by 0.57 percent, and the index climbed to 239.39 points.
- Existing Single and Multi-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. This represents an annual increase of 3.71 percent.
Implications for Private Investors
The rising prices can significantly influence the market environment and investment decisions. For private investors, the following factors are crucial:
- Demand Surplus: The continuing 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 key interest rate cut by the ECB, no significant relief for construction interest rates is in sight.
Market Forecasts
The increase in real estate prices signals potential for further price gains. Over the last twelve months, the indices for condos as well as single and multi-family homes rose by 2.83 percent. Private investors should incorporate these trends into their investment strategies.