The consequences of the Corona crisis on the real estate market have yet to be seen. For 2019, however, one thing is certain: The purchase prices for apartments in Germany will continue to rise. From 2018 to 2019, they increased nationwide adjusted for inflation by 9.3 percent, as the “Postbank Housing Atlas 2020” found. This means that the plus of the previous year could still be exceeded. Only in a few regions in Germany could buyers hope for at least constant prices. “In 2019, more than 90 percent of all German counties and independent cities recorded an increase in purchase prices,” the report said.
Apartments are becoming more expensive
“Low interest rates, high demand and a scarce supply – these were the most important price drivers in the real estate market in 2019,” explained Eva Grunwald, head of real estate business at Postbank. It had little hope for buyers. “There is currently no sign of a turnaround in most regions of Germany,” said Grundwald. The residential atlas was presented on April 6th.
Home ownership is becoming increasingly expensive in Germany. However, the growth in the most coveted cities is very different. In some, they are well below the national average. In others, buyers have to cope with double-digit growth rates. But just beyond the metropolises and bacon belts there are the biggest price jumps of up to 50 percent.
Condominiums are the most expensive in these cities and regions:
# 7 Cologne
Cologne was ranked seventh among the most expensive cities in real estate prices in 2019. According to the Postbank Housing Atlas, condominiums cost an average of 3967 euros per square meter. That was 8.9 percent more than in 2018. The price increase was roughly at the nationwide level of 9.3 percent.
@imago images / Norbert Schmidt
# 6 Dusseldorf
In Düsseldorf, the price spiral on the real estate market did not turn quite as quickly. According to the information, the costs increased by 7.8 percent to 4118 euros per square meter. According to Postbank, the ranking is based on data from the Federal Statistical Office, the Hamburg World Economic Institute and the Empirica Systems market database.
@imago images / Westend61
# 5 Stuttgart
In Stuttgart, the square meter prices for condominiums rose by 7.2 percent to 4,589 euros.
# 4 Berlin
The competition for apartments continues to be fierce in Berlin. Only another city in the top 7 recorded a stronger increase in property prices, according to Postbank. Around 10.0 percent more had to be paid for condominiums in the capital in 2019 than in 2018. The average price per square meter was 4,639 euros. Berlin thus passed Stuttgart.
# 3 Hamburg
Despite the price jump, the federal capital was still around ten percent behind Hamburg. In 2019, around 5054 euros per square meter were due in the Hanseatic city. According to the report, that was 8.79 percent more than in the previous year.
# 2 Frankfurt am Main
In no other metropolis, condominiums have become more expensive in 2019 than in Frankfurt am Main. According to the Housing Atlas, average prices rose by 11.0 percent to 5,687 euros. The banking metropolis was able to distance itself from the third place winner and narrow the gap to the frontrunner. However, it is still unobtainable in first place.
# 1 Munich
The threshold of 8,000 euros was broken in Munich in 2019. Condominium buyers paid an average of 8079 euros per square meter. It was only a small consolation that the growth of 6.2 percent was below the national average. Switching to a suburb is only an option to a limited extent. Because the extremely high real estate prices in Munich are symptomatic of the rest of the state. A look at the most expensive counties in Germany shows that.
Real estate compass
Current Property prices and detailed maps for all residential areas in Germany you will find in the Personal-Financial.com real estate compass: immobilien-kompass.Personal-Financial.com