The rise in prices for residential real estate in Germany has accelerated.
Wiesbaden – The rise in prices for residential real estate in Germany has accelerated.
According to preliminary calculations, apartments and houses rose in price by an average of 12 percent in the third quarter compared to the same quarter in the previous year Federal Statistical Office announced on Wednesday in Wiesbaden.
This is the second time the largest price increase since the beginning of the time series in 2000. The statisticians had already calculated an increase of 10.8 percent in the second quarter.
Low interest rates, scarce living space, a lack of investment alternatives, especially for large investors, and a robust economy have been driving the real estate boom for a long time.
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With the Corona crisis and the trend towards working from home, real estate is also increasingly in demand in rural areas. Compared to the second quarter, apartments and one- and two-family houses increased in price by an average of 4.2 percent.
The statisticians not only found a particularly strong price increase of 14.5 percent year-on-year in the seven largest German cities of Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart and Düsseldorf.
Real estate prices also rose rapidly in sparsely populated rural districts. There, detached and semi-detached houses increased in price by 15.5 percent compared to the same quarter of the previous year and condominiums by 11.2 percent.
In more densely populated rural districts, the prices for houses and apartments have also risen significantly: detached and semi-detached houses there cost an average of 12 percent more than in the same quarter of the previous year, and condominiums 12.3 percent.