Real estate in Germany: the boom in construction and prices increase

Nov. 21, 2015

Real estate in Germany: the boom in construction and prices increase

Despite the active construction, the demand for real estate in Germany is so high that the proposal hardly satisfies the demand. Prices continue to rise – the trend of recent years remains unchanged. 

The number of issued building permits increased by 5.4% to 284 851 in 2014, according to the German Federal statistical office (Destatis). These are the highest figures over the last 9 years. It is expected that the results of the current year will be even higher. 

National real estate index for the first half of 2015 increased 5.3% compared to the same period of last year. As for real estate prices in different regions of the country, with some variation they grew everywhere. 

North-Eastern Germany

This year prices in Berlin are booming. The cost of apartments in the capital in the first quarter grew by 5.1% at an average price of € 2 785 per square meter. The average cost of the household for 1 or 2 families in Berlin increased by 7.1% to € 966 1 per square meter.

Prices in Hanover increased by 5.2% and reached € 1 773 per sq. m. The cost of houses rose by 4.9% to € 1 710 per sq. m.

Dresden: a 7.6% growth in apartment prices (€1 991 per sq. m.) and 5.5% for houses (up to € 1 902 per sq. m.) 

Hamburg: 3% growth in apartment prices (3 247 € per sq. m.) and 3.6% for houses (€ 2 240 per sq. m.)

West Germany

Dusseldorf is behind its North-Eastern colleagues, but also demonstrates growth: 0.5% growth in apartment prices (€2 128 for sq.m.) and 4% for houses (€ 2 079 per sq. m.)

Much more serious rise of prices is in Cologne: 9,9% for apartments  and € 2 372 per sq.m. and 5% for houses (€ 1 995 per sq. m.)

Dortmund: 6.1%for apartments (€ 1 385 per sq. m.), 3.4 % for houses (€ 1 773 per sq. m.)

South Germany

The apartments prices rise in Frankfurt is 1.7% (€ 2 647 per sq. m.), and on detached and semi - detached houses it increased by 6.5% to € 2 148 per sq. m. 

Traditionally the leader of growth is the capital of Bavaria Munich, the growth of prices for apartments have amounted in the first quarter of 2015 to 10.7% at an average price of € 4 691 per sq. m ., and the increase in the prices of one and two-piece cottages is  6.1% to € 3 068 per sq. m .

Stuttgart: 8.3 % growth in apartment prices (up to € 2,206 per sq. m.) and 2.7% for the houses (€ 2 262 per sq. m.)

 

According to the materials of globalpropertyguide.com 

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