Real estate in the metropolitan area is increasingly in demand

FRANKFURT (dpa-AFX) – According to a study, the surrounding areas of metropolises are becoming more and more popular with property buyers. In Berlin, Munich, Cologne, Hamburg and Stuttgart the prices for existing apartments in the surrounding area have risen more sharply since 2017 than in the metropolises themselves. This shows an analysis by the Association of Sparda Banks and the Institute of German Economy (IW). In Berlin, for example, apartments in the surrounding area rose significantly more than in the capital (17.5 percent) by almost 22 percent. In the Munich periphery, too, the increase was around 10 percent greater than in the city (6 percent).

In Frankfurt and Düsseldorf, on the other hand, price increases were stronger in the cities than in the surrounding area. Buyers in the bacon belt continue to benefit from large price discounts, the authors wrote in Tuesday’s paper. Residential properties near the seven largest cities are on average 55 percent cheaper than in metropolitan areas.

“If you are looking for more living space for your family, you should move out of the big cities into the surrounding area,” said IW real estate expert Michael Voigtländer. In addition to price, availability and infrastructure, space also plays a decisive role, especially for young families. While the average living space in the metropolises is 86 square meters, the surrounding area offers an average of 120 square meters. The large differences caused the flow of commuters to swell. “This gives rise to a clear mandate to politicians to expand the infrastructure in the surrounding area,” said Florian Rentsch, chairman of the Association of Sparda Banks.

The corona crisis has meanwhile not brought the real estate boom to a standstill, observed the banking association and the IW. “The prices are just as unbroken as the demand for residential property itself.” Real estate continues to be seen as a secure investment, loans are cheap and the desire for a home is great – especially in times of lockdown and home office.

Since the beginning of the pandemic in March, the demand for the purchase of single-family homes has risen sharply. Search queries for apartment rents would also be above pre-crisis levels. Only sellers are reluctant. After the slump in sales advertisements in the first corona wave, there is still no recovery to the pre-crisis level./als/DP/jha

Source: dpa-AFX

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