Property taxes in 11 44265 Dortmund, like in other areas of Germany, can significantly influence real estate prices. Higher property tax rates typically deter potential buyers, as they increase the overall cost of ownership. For example, if a neighborhood experiences a hike in property taxes, it may lead to a decrease in demand, causing home prices to stagnate or drop. Conversely, areas with lower property tax rates can attract more buyers, driving prices up due to increased demand. Additionally, potential investors often factor in these taxes when evaluating rental properties, as higher taxes can reduce profitability, making them less appealing investments. In Dortmund, the local municipality’s funding derived from property taxes also impacts public services, which in turn affects residents' perceptions of the area’s desirability.