Prices for residential real estate continue to rise and rise. Still. Yesterday we discussed whether the current changes in the housing market (caps, laws, etc.) could cause stagnation from now on. This is quite possible. But let’s take a look at the current price situation for residential real estate in Germany.
In the 1st quarter of 2019 residential property prices were 5% higher than in the 1st quarter of 2018. 5% within 12 months, that is heavy! Prices also rose in rural regions. According to statisticians the price increase in the seven largest metropolises was particularly strong with +8.6% for condominiums and +6.9% for single and two-family houses. In rural districts with densification approaches and sparsely populated rural districts the price increase in the 1st quarter of 2019 was not quite as strong. Apartments became more expensive by 1.7% and 1.1% respectively, houses by 4.3% and 4.5% compared to the 1st quarter of 2018.
Dramatic increase in residential property prices since 2015
Since 2015 the increase has been dramatic. The statisticians in the wording:
Since the end of 2015 prices for residential real estate have risen by 22% nationwide. Above-average price dynamics were seen in condominiums in the major cities, where prices rose by 40.8 %. Single-family and two-family houses also became 36.4 % more expensive in these seven largest cities. In other major cities and outside the conurbations, prices have also risen significantly since 2015. Prices for houses in sparsely populated rural areas were 21.4 % higher than in the fourth quarter of 2015; prices for apartments in these regions rose by 16.3 %.