House prices in Germany fell significantly in 2023, according to the Bundesbank’s current Monthly Report. Residential properties were no longer affordable for many people owing to high inflation and increased interest rates. Demand for housing declined, increasingly shifting to the rental market, and the already high inflation in rents saw a significant further acceleration, the economists write. Overvaluations in the real estate market came down in 2023, but were not fully eliminated. The authors therefore believe that there is still a certain risk of price corrections.

Mehr zur aktuellen Bundesbank-Projektion erfahren Sie im Video mit dem Leiter des Bereichs Konjunktur und Wirtschaft, Bernhard Manzke.

Last year, the Bundesbank’s annual accounts were shaped by the increase in the key interest rates. For the 2023 financial year, the Bundesbank reports a balanced financial result because it was able to use its financial buffers to cushion burdens in the double-digit billions. 

Last year, the Bundesbank’s annual accounts were shaped by the increase in the key interest rates. For the 2023 financial year, the Bundesbank reports a balanced financial result because it was able to use its financial buffers to cushion burdens in the double-digit billions. To this end, the Bundesbank released its risk provisions in full and reduced its reserves. We expect the burdens to be considerable again for the current year. They are likely to exceed the remaining reserves, said Bundesbank President Joachim Nagel at the press conference presenting the Bundesbank’s annual accounts

The main tasks of the expert panel are promoting dialogue on the activities of international working groups and to provide a platform for exploring industry-wide issues.