- 5 min read
- 23.01.2025
Engel & Völkers Schleswig-Holstein annual review of 2024
Our year in the Schleswig-Holstein real estate market
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2024 was a year full of dynamism and exciting changes for the real estate market in Schleswig-Holstein. It was also an eventful year for us at Engel & Völkers Schleswig-Holstein, in which we were able to steadily expand our market presence and celebrate valuable successes together with you.
In total, we were able to broker more than 600 properties in 2024, which corresponds to an increase of 13% compared to the previous year. We were particularly pleased with the development of marketing times, which were significantly shortened to an average of 2.5 months. This positive change is a clear sign that buyers are making decisions more quickly thanks to better financing conditions and stable framework conditions. We look back with pleasure on a year that was characterized not only by market-related challenges, but above all by positive developments and new opportunities. At this point, we would like to give you an overview of the key events and trends on the regional real estate market and take a hopeful look at 2025 together.
Market environment 2024: Positive developments and prospects for 2025
Increased demand for primary residences in Schleswig-Holstein
In particular, 2024 brought a stabilized financing environment for prospective property buyers. Over the course of the year, interest rates for home buyers fell again for the first time since 2021. Equity requirements also fell. Both effects thus provided a noticeable boost to demand. It is particularly exciting to see that, in a historical comparison, interest rates are currently in a very competitive environment.
After a challenging first half of the year, the second half of the year was much more dynamic in the single-family house and owner-occupied apartment segment, bringing noticeable movement to the market.
Sellers were also more optimistic again in their intentions to sell. This is reflected in the increased number of inquiries for market price estimates, which we were able to offer free of charge and without obligation.
Another important factor in the rising demand is the increasing attractiveness of the catchment area of major cities such as Hamburg. This is constantly expanding, which is partly due to the shortage of living space in the metropolitan areas, the expansion of local public transport in the surrounding areas and the planning of major infrastructure projects. Improved connections to urban centers are also turning rural regions into sought-after residential locations and providing an additional boost to the real estate market.
The overall improvement in market conditions led to a stable and dynamic development from which both buyers and sellers were able to benefit. We expect this trend to continue in 2025.
Vacation property market: a reliable growth factor
The market for vacation properties remained a mainstay of Schleswig-Holstein's real estate landscape in 2024. With an increase of 4.2 % in the number of properties traded and a price rise of 8.5 %, demand remained high, particularly in coastal regions such as Sankt Peter-Ording, Timmendorfer Strand, Scharbeutz and Fehmarn.
The rise in tourism, with an increase of 7.3% in overnight stays (Source: Tourismus-Agentur Schleswig-Holstein GmbH) compared to 2023, underlines the attractiveness of Schleswig-Holstein as a vacation region. Buyers from Scandinavia in particular are increasingly investing in vacation properties, further increasing the region's international appeal.
Prices and supply: trend reversal possible
The moderate property prices in 2024 opened up attractive entry opportunities for many buyers - both in the primary residence and vacation property markets. We are currently observing a trend reversal, with prices rising again after a few weaker years.
Supply remained limited, particularly in popular urban regions such as Kiel, Lübeck and Flensburg, as a result of which market values stabilized and high-quality properties remained in demand.
Our growth in Schleswig-Holstein
At Engel & Völkers Schleswig-Holstein, we further expanded our commitment in 2024, growing to 25 locations. This growth underlines our firm belief in the strength and potential of the regional real estate market.
Outlook for 2025: confidence and new opportunities
With interest rates currently stable and well below the level of previous years and moderate real estate prices, we are optimistic about 2025. Demand for realistically priced primary residences and vacation properties remains high.
Schleswig-Holstein continues to offer excellent conditions for real estate investments - whether as a primary residence or a vacation home.
We thank you for your trust and look forward to continuing to provide you with expert support in all real estate matters in 2025. Whether you would like a free and non-binding market price valuation or need help finding your dream property - we are here for you.
