29 July 2020, 14:37
Real estate prices in Germany continue to rise in the corona crisis. In the first 6 months of 2020, condominiums will become more expensive by up to a third compared to the previous year. Where it went up most clearly.
Munich is still the most expensive real estate location. Trend: increasing
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The increases apply equally to old buildings (built before 1945), existing buildings (built from 1945 to 2015) and new buildings (built in 2016 or later). Purchase prices rise the most for new buildings. That shows a Year-on-year comparison by immowelt for the 14 largest cities. The offer prices for a sample apartment (80 square meters, 3 rooms, 2nd floor) were examined.
“The corona pandemic does not herald the end of the growth cycle on the real estate market. Home ownership is still very much in demand and prices continue to rise in the big cities, ”says Prof. Dr. Cai Nicolas Ziegler. “In the new building segment, the price rally continues, because the high costs for building land and building prices, which have been rising for years, are driving the level. But buyers also have to expect higher prices for existing apartments than they did a year ago. “
31 percent more expensive: new apartment in Stuttgart
The biggest increases are in Stuttgart: The price for a new apartment increases by 31 percent to 6,827 euros per square meter. In the state capital of Baden-Württemberg, the high land prices are driving up the costs of new buildings, because construction areas are very rare due to the location in the basin. It is cheaper to purchase an existing property: This is offered for 4,578 euros per square meter – but that’s 14 percent more than in the first half of 2019.
There is similarly strong growth in Frankfurt am Main, where new apartments have gone up by 21 percent to 6,926 euros per square meter. In the banking metropolis, many upscale apartments with good equipment are being built, which are offered at higher prices. In comparison, existing properties are cheaper (5,238 euros), but have increased by 24 percent year-on-year. In a Germany-wide comparison, Frankfurt ranks 2nd among the most expensive real estate locations with this price level.
High-priced Munich continues to become more expensive
Only real estate buyers in Munich have to dig deeper into their pockets. The Corona crisis does not bring the most expensive city in Germany a break in the price rally: New apartments cost 9 percent more than in the previous year – 9,738 euros per square meter. The same increase can also be seen in the old building, which is offered for 8,648 euros per square meter. In the Isar metropolis you can often find renovated old buildings in good locations.
Berlin and Hamburg: Even increase across all age groups
High ceilings, wide corridors and stucco: Berlin is also known for its old apartments. In the capital, however, there is a larger supply of unrenovated old buildings, which is reflected in the price: At 3,655 euros (+7 percent), this category in Berlin is still quite inexpensive compared to Germany. Modernized old apartments in sought-after locations are being offered at significantly higher prices. For a completely newly completed apartment, prospective buyers in Berlin have to calculate with 4,965 euros (+7 percent) per square meter.
Real estate prices are also climbing steadily in the metropolis of Hamburg. In the outskirts of the Hanseatic city there is still free building space. A new condominium costs 5,654 euros – an increase of 5 percent. The Hanseatic city remains an expensive place for property buyers. In the old building offer, Hamburg is in the upper segment at 4,593 euros per square meter (+8 percent).
Strong growth in Dresden and Leipzig
In the largest cities in Eastern Germany, real estate buyers also have to be prepared for the sharp rise in prices: In Dresden, an apartment was between 15 percent in a new building (3,638 euros) and 19 percent in an old building (2,452 euros). Leipzig also recorded double-digit growth rates: 17 percent in new buildings (3,347 euros) and 22 percent in existing buildings (2,084 euros).
No corona shock
There is still no noticeable corona shock on the real estate market, on the contrary: Prices for condominiums will continue to climb almost everywhere in the first half of 2020. Only in some cities and property categories is there a subdued increase in asking prices. In Cologne, the price of a new apartment is more or less constant at 4,629 euros, in Hanover only a minimal increase of 2 percent (3,941 euros) can be observed. In Bremen, on the other hand, it is the existing buildings that remain the same in price with an increase of 1 percent (2,352 euros). In Dortmund, a minimal decline of 1 percent to 1,503 euros per square meter can be observed in old buildings.
Photo: Shutterstock
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