House prices in German cities continue to rise meteorically
An evaluation by housing website Immoscout24 has revealed that house prices in Germany’s biggest cities have risen significantly in the first half of 2021. While prices in Cologne saw the biggest increase, prices in Munich have stagnated.
House prices in Germany on the rise
The cost of buying a house or apartment in Germany’s biggest cities has risen significantly in the first half of 2021, compared to the second half of 2020. As per Immoscout24’s evaluation, the price per square metre for pre-existing apartments rose by 9 percent nationwide, to an average of 2.492 euros, while the prices of newly built condominiums rose by 7,9 percent. Immoscout24 discerned the price increases by evaluating real estate advertisements from the five largest cities in Germany.
Demand for apartments in the cities is stable. According to Immoscout24, apartments in existing condominiums attracted around five applicants every week. For newly built condominiums, prospective buyers enquired about once a week. These figures tended to increase in the metropolitan areas of the cities.
The price of existing houses increased by an average of 7,4 percent in the first half of 2021 compared with the second half of 2020. New build house prices have increased by an average of 5 percent in the same period. Existing houses received four enquiries every week, while new build houses received one request per week on average.
House prices rise the most in Cologne
Cologne registered the highest increase in house prices in the second quarter of 2021. Prices for existing condominiums in the city rose by 6,6 percent to 4.078 per square metre. The housing market in Cologne is also the most in-demand, with apartment listings attracting around 10 applicants per week. In Berlin and Hamburg, the price for an apartment in an existing condominium rose by 4,8 percent. In Frankfurt, prices rose by 4,5 percent to 5.491 euros per square metre, making the city one of the most expensive places to live in the country.
The housing market in Munich has stagnated, albeit at a particularly high price level. The price for newly built condominiums in the Bavarian capital only rose by 1,4 percent. However, despite the small increase, prices are at an average of 8.673 euros per square metre. For new houses, prices actually fell by 0,5 percent, although prices remain high at 9.016 euros per square metre. "The Munich residential real estate market is showing an interesting phenomenon - despite the strong demand, prices are stagnating," said Immoscout24 managing director Ralf Weitz. "We can therefore assume that the current price level marks the top of what providers can currently realise on the market".