Real estate prices in Germany have been rising for 16 years

Property prices in Germany have been rising for 16 years now. The recently published bulwiengesa real estate index not only shows developments in the past, but also looks into the future.

For the 45th time, the bulwiengesa real estate index describes real estate price developments in Germany. The result: Even the Corona crisis could not stop the price increase on the real estate market and led to the 16th year of rising real estate prices in a row.

The real estate market in Germany is robust

In 2020, Germany had to cope with a historic economic slump of -5.4 percent. But the effects so far have been far less severe than expected. According to the bulwiengesa real estate index, real estate prices even rose by 3.6 percent in 2020. Although real estate prices rose far less than in previous years and fell to the level of increase between 2011 and 2013, these figures are still convincing due to the overall very weak financial year.

The housing market in particular was able to convince with a plus of five percent in 2020 and has thus increased by an average of 6.5 percent in the last five years. With a price increase of 7.5 percent, row houses in particular became more expensive last year.

The situation is different for real estate in the retail trade, however, because here rents fell by more than two percent. The office market also recorded a decline due to the extensive home office regulations. In the cities, office rents fell accordingly by 0.8 percent, which, according to the bulwiengesa property index, can be attributed to the lower demand.

However, Germany is still not the country with the highest housing prices in Europe, as a study by Deloitte shows. According to this, Luxembourg ranks first by a long way with a square meter price for new apartments averaging 7,145 euros. In second place, with a gap of over 2,500 euros, is France, which has an average price per square meter of 4,523 euros. In Israel, Great Britain and Germany, however, you pay 3,700 to 3,900 euros per square meter.

What does the future look like in the real estate market?

“[D]he economic downturn [dürfte] house prices will depress in the coming months and years ”, say the authors of the Deloitte study. It must be borne in mind, however, that the loose monetary policy of the central banks will keep interest rates at historic lows in the next few years and thus support the real estate market, the authors continue to assess.

If you believe a forecast by the real estate portal, real estate prices could even rise by more than 60 percent by 2030. According to the forecast, real estate prices in cities like Berlin and Munich will then be 60 percent more expensive than they are currently. However, Hanover took first place in this ranking with an increase of 62 percent. According to information from, the housing offers in the 14 largest German cities between 2010 and 2018 were recorded for this forecast on a quarterly basis. “For the price forecast, the real estate portal used a statistical method that takes into account all the relevant influencing factors such as the expected population development, interest rates, consumer prices and construction prices”, can be read on the website.

Image Sources: Andrey_Popov /

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