The real estate boom continues unabated in the German metropolises. Nationwide, the price per square meter for existing condominiums rose by nine percent to an average of EUR 2,492 in the first half of 2021 compared to the second half of 2020. The prices for newly built condominiums rose somewhat less strongly by 7.9 percent, as a study by the real estate portal Immoscout24 shows.
The evaluation included advertisements from the five largest cities in Germany, these are Berlin, Hamburg, Munich, Cologne and Frankfurt am Main. The prices for houses also increased significantly in the period under review. The asking price of an existing house was 7.4 percent higher on average in the first half of 2021 than in the second half of 2020. New build houses were offered on average five percent more expensive nationwide than in the second half of 2020.
According to Immoscout24, demand was stable for both types of apartments – around five prospective buyers contacted an advertised condominium in the portfolio every week, and one inquiry per week for newly built condominiums. In the metropolitan areas of the big cities, however, these values were sometimes significantly higher. Providers of an existing house received four inquiries every week; for new buildings it was an average of one inquiry.
There are, however, clear regional differences in price developments. The highest price increase was in Cologne – There the prices for existing condominiums rose by 6.6 percent to 4078 euros per square meter. Demand was also greatest in Cologne, with ten prospective buyers reporting per week per advertisement. Also in Berlin and Hamburg the corresponding prices rose by 4.8 percent. In Frankfurt am Main, prices rose by 4.5 percent to an average of 5491 euros per square meter – making the Main metropolis one of the most expensive real estate markets.
The real estate market in Munich however, stagnated at a high level. The prices for newly built condominiums rose by 1.4 percent to an average of 8673 euros per square meter. In the case of new-build houses, on the other hand, there was a slight downward trend, despite high demand, with prices falling by 0.5 percent to an average of 9016 euros per square meter.
“The Munich residential property market is showing an interesting phenomenon – despite the strong demand, prices are stagnating,” said Ralf Weitz, Managing Director of Immoscout24. “We can therefore assume that the current price level marks the top of what providers can currently realize on the market.”