The mortgage broker Interhyp expects real estate interest rates to rise further to between 3.5 and 4 percent by the end of the year.

Currently, the average interest rate for ten-year loans is 3.1 percent, more than three times what it was at the beginning of the year.

This was reported by board member Mirjam Mohr on Wednesday in Munich.

Since at the same time construction and real estate prices have continued to rise, many interested parties can no longer afford their own house or apartment, according to Interhyp.

“A lot of people in Germany feel this rude awakening.”

Last year there was a "last minute panic" on the residential real estate market, said the manager at the presentation of the company's new "living dream study".

Many interested parties had a completely different feeling this year: "I missed the train." The demand for real estate financing is still high - but at least some interested parties are no longer receiving financing commitments due to limited financial resources and excessive costs.

Interhyp had 2,180 people interviewed for the study in February and March.

Urban exodus drives up prices in the suburbs

Only 13 percent want to realize their dreams of living in expensive cities.

42 percent of those moving from the city to the country give "cheaper housing" as the reason.

The study also shows a somewhat decreasing desire to have their own four walls: fewer people than in the previous year want to live in their own four walls (68 percent after 72 percent previously), but half of them (34 percent) dare to buy not financially.

The figures also show that the single-family house remains the favorite for dream homes and that saving energy is becoming increasingly important.

According to Interhyp, one consequence of the very high prices in the cities is urban exodus - with the effect that prices in the areas around Berlin, Frankfurt and Hamburg rose much more sharply in the first quarter than in the actual city.

Mohr named Berlin as an example.

In the Berlin area, prices shot up by more than 12 percent in the first quarter, but by only four percent in the city.

According to this, many city dwellers are forced to buy a house or apartment in a rural environment and are not very satisfied at first.

"City, country, frustration," said Mohr.

The reason for this are restrictions on the three Cs: social contacts, culture and consumption.

According to the survey, at least 42 percent of rural property buyers struggled with their decision.

Interhyp does not expect a general, Germany-wide price decline for residential property.

"We assume that prices will rise more slowly," said Mohr.

In some regions there could definitely be price declines, but not across the board.

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