BerlinThe prices for residential real estate in Germany at the beginning of the year continued to increase on a broad front. In the first quarter, they were on average five percent higher than in the same period of the previous year, as the Federal Statistical Office announced on Wednesday based on preliminary results.
Accordingly, prices climbed both in cities and in rural areas. The increase in the seven largest metropolises – Berlin, Munich, Hamburg, Frankfurt, Cologne, Stuttgart and Dusseldorf – was particularly strong at 8.6 percent for condominiums and 6.9 percent for one- and two-family houses. Price increases were lower in rural districts, which were more densely populated: apartments increased by 1.7 percent, houses by 4.3 percent.
Since the end of 2015, prices for residential real estate have risen by 22 percent nationwide. An above-average price dynamic had condominiums in the cities with an increase of 40.8 percent. One- and two-family homes increased in the largest seven cities by 36.4 percent. According to the Federal Statistical Office, prices in other major cities and outside the metropolitan areas have also increased significantly since 2015.
One of the driving forces behind the flight into concrete gold is the low interest rate policy of the European Central Bank. For some time now, the Bundesbank has warned against excessive exaggerations in real estate prices in German cities – especially in the seven metropolises of Berlin, Dusseldorf, Hamburg, Frankfurt, Cologne, Munich and Stuttgart.
More: New development in the debate on affordable housing: The government wants to limit rents for state-owned apartments.
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