Wednesday, August 5, 2020

Where real estate is expensive and where it is cheap

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7.4.2020 – The development of the purchase price of used condominiums in German regions is shown in the “Housing Atlas 2020”. The trend: prices rose in 90 percent of counties and cities. The reason given for this is that interest rates are low, while demand is high and supply is scarce.

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Concrete gold remains attractive for the Germans. The low interest rates continue to increase demand. In 2019, purchase prices for real estate rose in 90 percent of German counties and independent cities.

These are the results of the “Living Atlas 2020” study by Deutsche Postbank AG. On Monday, the money house provided a market overview of the square meter prices for existing properties in 2019 compared to the previous year (Insurance Journal March 12, 2019).

The residential atlas is an annual, multi-part series of studies that examines the German real estate market from various aspects regionally down to district level. The current evaluation was prepared on behalf of the financial institution by the Hamburgische Weltwirtschaftsinstitut gGmbH (HWWI). The numbers refer to the 401 districts and independent cities in Germany.

Living Atlas (Image. Postbank)

No trend reversal in sight on the real estate market

“Low interest rates, high demand and scarce supply – these were the most important price drivers in the real estate market in 2019 as well. There is currently no sign of a turnaround in most regions of Germany, ”says Eva Grunwald, Head of Real Estate Business at Postbank.

The real estate expert’s statement still applies in particular to seven major cities in Germany. As in previous years, Munich remained the leader, followed by Frankfurt am Main and Hamburg.

In the Bavarian capital, the square meter prices rose by 6.2 percent in the previous year. The average value for the purchase of condominiums in existing buildings in Munich is 8,079 euros per square meter.

Prices rose the most in Frankfurt am Main

In a comparison of the seven largest German cities, prices rose the most in Frankfurt am Main. Real estate buyers had to lay down an average of 5,687 euros for the square meter in 2019. That is eleven percent more than in the previous year.

The German banking metropolis is still in second place among the most expensive cities. Only in Frankfurt and Berlin did the price increase exceed the nationwide average of 9.3 percent.

Real estate prices in the top seven cities in Germany

rank

city

Price per square meter 2019

Purchase price increase in percent *

1

Munich

8,078.77

6.19

2nd

Frankfurt am Main

5,686.62

11.04

3rd

Hamburg

5,054.23

8.79

4th

Berlin

4,638.89

9.96

5

Stuttgart

4,589.24

7.22

6

Dusseldorf

4,118.32

7.78

7

Cologne

3,967.09

8.93

For comparison: New buildings are the most expensive in Stuttgart and Munich. Leipzig recorded the largest price increase for these properties. Your own four walls are cheapest in Bremen, Dresden and Leipzig. This was shown by a survey by “Immoscout24.de”, a brand of Immobilien Scout GmbH. The portal analyzed the purchase prices for new buildings in major German cities (February 25, 2020).

County of North Friesland most expensive

As the authors of the residential atlas emphasize, prices rose in addition to the metropolises in the surrounding areas of the big cities. Nine of the top ten counties are in Bavaria.

The most expensive district is in North Friesland. In addition to the islands of Sylt, Föhr and Amrum, this also includes popular holiday resorts such as St. Peter Ording. In 2019, the square meter here cost an average of 6,452 euros. This corresponds to a plus of 14 percent compared to the previous year.

In the next nine places are counties in the Munich area. In second place is Miesbach in Upper Bavaria. Buyers pay an average of 6,127.15 euros per square meter for the purchase of existing buildings. Starnberg follows in third place with 6,079.85 euros and the district of Munich with 6,043.45 euros is in fourth place.

Real estate in the Uckermark: up 48 percent

After evaluating the current residential atlas, prices in the new federal states also caught up. According to the authors, the Uckermark recorded the strongest increase in Germany with an increase of a good 48 percent.

Square meter prices in the Elbe-Elster district skyrocketed by almost 42 percent. In Frankfurt (Oder) home ownership was a good third more expensive. Price increases for apartments in the stock thus resulted particularly in counties and cities in which only a few apartments were offered for sale, according to the study report.

“The low supply already led to high percentage price increases with a slight increase in demand. The strongest price increases of the past year are therefore not to be found in the metropolises and their bacon belts, but in less densely populated regions with a low and rather cheap real estate offer, ”continues Postbank.

Regions with the strongest purchase price increase

rank

City / district

federal state

Price per square meter 2019

Purchase price increase in percent *

1

Uckermark

Brandenburg

1,695.96

48.44

2nd

Elbe magpie

Brandenburg

1,070.75

41.76

3rd

Zweibrücken, city

Rhineland-Palatinate

1,516.74

35.78

4th

Mansfeld-Südharz

Saxony-Anhalt

831.42

34.52

5

Frankfurt an der Oder, city

Brandenburg

2,037.14

34.27

6

Wunsiedel in the Fichtel Mountains

Bavaria

1,150.98

33.11

7

Rhein-Hunsrück district

Rhineland-Palatinate

1,698.88

30.23

8th

Schwalm-Eder district

Hesse

1,665.01

30.01

9

Waldeck-Frankenberg

Hesse

1,518.98

29.53

10th

Neustadt an der Waldnaab

Bavaria

1,974.49

28.19

.

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