Yeah.
I don't know, if it'll come for all real estate, everywhere, to the same degree.
Being in the Munich Metropol area is nuts. Closer to the Alps is even nuttier.
Discussion
with houses in shrinking economic areas, families often let them dilapidate slowly instead of sell them on the market for low prices or let a poor family rent there who might wreck it.
so instead of supply reducing prices, the supply of "livable" (esp mortgageable) houses just shrinks, maintaining the high housing prices.
case in point: a family whose mobile home flooded in the Hurricane Helene is still living in the church area, even though there are many tumble-down houses in the neighborhood that they could probably live in. But nobody wants to rent to them bc they have a history of drug use, etc. but that's the typical family that needs houses in shrinking economic areas.
on a positive note, they have fulfilled lifelong church attendance goals in just a few months!
Yeah, we have lots of rotting, old buildings worth over a million Euros 💶. They just don't put them on the market. Prices declining would just result in more of those.