▷ 2021 up to 31 percent more than 2020: price explosion for condominiums recorded …

18.01.2022 – 09:39

real estate

Nuremberg (ots)

A year-on-year comparison of asking prices for existing apartments (40 to 120 m²) in 78 major German cities shows:

• Prices in the most expensive cities continue to rise: Munich to EUR 8,610 per square meter (+12 percent), Frankfurt to EUR 5,960 (+17 percent) and Hamburg to EUR 5,700 (+19 percent)
• Significant price increases in rather inexpensive cities: Erfurt is up 31 percent (2,610 euros), Leverkusen by 29 percent (3,030 euros) and Remscheid by 26 percent (1,830 euros)
• Berlin: 4,700 euros per square meter after a moderate increase of 6 percent in the past year
• Lowest prices in structurally weak cities: Chemnitz (1,260 euros), Gelsenkirchen (1,370 euros) and Bremerhaven (1,400 euros)

The past year brought no relief or even a trend reversal to the German real estate market. Home ownership prices continued to rise in many places in 2021 – in some cases by up to 31 percent. This is shown by a year-on-year comparison by immowelt. The asking prices of existing apartments with 40 to 120 square meters in 78 German cities were examined. In 63 of these, prices increased by 10 percent or more from 2020 to 2021. With the strongest percentage increases, the price rally on the housing market is now also affecting smaller cities where condominiums were previously comparatively affordable.

Munich, Frankfurt and Hamburg remain the most expensive cities

Munich remains the most expensive city in Germany: in the Bavarian state capital, the price per square meter increased by 12 percent to 8,610 euros. It is followed by Frankfurt am Main, where condominiums are being offered for a median of EUR 5,960 per square meter – that is 17 percent more than in 2020. In Hamburg, the price level also made another leap: the median price for condominiums climbed by 19 percent to EUR 5,700 per Square meters.

In comparison, Berlin remains relatively cheap for a capital city: a median of 4,700 euros is demanded per square meter in the Spree metropolis. Compared to 2020, this is a rather moderate increase of 6 percent.

NRW and East Germany: Price explosion in 2nd tier cities

The highest percentage price increases in the past year are in cities that have not necessarily been considered real estate hotspots to date. In the east, for example, Erfurt, Rostock and Leipzig stand out. In Erfurt, the square meter price for condominiums climbed by 31 percent to 2,610 euros within a year, in Rostock by 23 percent to 3,500 euros. In Leipzig, the largest city in Saxony, an increase of 21 percent to 2,610 euros is recorded. In a number of cities in North Rhine-Westphalia, condominiums are also being offered at significantly higher prices than they were a year ago: In Leverkusen, the level rose by 29 percent (EUR 3,030) and in Remscheid by 26 percent (EUR 1,830). Duisburg (EUR 1,610) and Dortmund (EUR 2,190) are each 24 percent more expensive.

There are a total of 13 cities in which the average price level has increased by 20 percent or more compared to the previous year. Apart from Dortmund and Leipzig, none of these 13 cities has more than 500,000 inhabitants. The price rally for real estate property is also spreading beyond the much-cited hotspots.

There are likely to be many reasons for this development: In view of the very high prices in many metropolises, investors are now turning their attention to cities in the second tier, which still promise acceptable returns thanks to lower purchase prices. Private users who have already toyed with the idea of ​​buying a property want to act as quickly as possible in view of the comparatively cheap offer and are thus fueling demand. In addition, the corona pandemic has further strengthened the reputation of real estate as a crisis-proof investment. All of these are reasons that make home ownership popular and consequently drive up prices.

Chemnitz, Gelsenkirchen and Bremerhaven: Inexpensive real estate

The cheapest cities in the study tend to be structurally weak places – but there are also double-digit percentage price jumps there. In Chemnitz, the average asking price rose by 15 percent (1,260 euros), in Gelsenkirchen by 17 percent (1,370 euros) and in Bremerhaven by 12 percent (1,400 euros).

The real estate market was only relatively stable in price in 3 cities, because here the asking prices increased by less than 5 percent. These include Göttingen with 2 percent (2,840 euros), Reutlingen with 3 percent (3,630 euros) and Lübeck with 4 percent (3,240 euros). This roughly corresponds to the inflation rate in the same period.

Detailed tables of results with detailed asking prices for 2020 and 2021 for the 78 major cities surveyed are available for download here.

Calculation basis:

The data basis for calculating the purchase prices were the offers advertised on immowelt.de. Only offers that were increasingly in demand were considered. The prices reflect the median of the apartments offered on immowelt.de in the years 2020 and 2021 (existing stock without new construction, 40 to 120 square meters). The median is the middle value of the asking prices. These are offer prices, not closing prices.

Press contact:

immowelt GmbH
Northeast Park 3-5
90411 Nürnberg

Barbara Schmidt
+49 (0)911/520 25-808
[email protected]

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Original content from: immowelt, transmitted by news aktuell

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