So far, the corona crisis has hardly had any impact on the real estate boom. The prices for houses and apartments in Germany continued to rise from April to June. There are two reasons for this.
Despite the corona crisis, real estate in Germany continued to become more expensive in the second quarter. The prices for apartments and houses were on average 5.6 percent higher from April to June than in the same quarter of the previous year, as the Federal Statistical Office in Wiesbaden announced on Wednesday. Even compared to the first quarter of this year, prices have risen by 1.4 percent.
The Wiesbaden statisticians explained that the growth was in the range of the previous quarters. However, it is a flash estimate that is fraught with a certain degree of uncertainty. The analysis has already been published because there was great interest in the possible effects of the pandemic on the real estate market. Regional results for the second quarter are to be announced in around a month, as planned.
Corona lockdown caused the number of apartment advertisements to collapse
The corona pandemic has had an impact in Germany since spring and had a full impact on the economy in the summer quarter. Some economists had therefore expected a severe setback on the housing market and expected falling property prices. The number of apartment advertisements fell by up to 40 percent in the lockdown.
Short-time work, falling incomes and rising unemployment in the Corona crisis are burdening the financial situation of many people, which limits the scope for real estate purchases. On the other hand, many are looking for investors in the face of violently fluctuating stock exchanges Security in real estate and the low interest rates continue to make loans cheap.