House prices in Germany record strongest increase in over 20 years
If there is one thing we know about housing in Germany, it’s that it just keeps on getting more expensive. The Federal Statistical Office has now revealed that prices rose particularly strongly in the second quarter of 2021
The cost of housing rose 10,9 percent in second quarter of 2021
The Federal Statistical Office (Destatis) has revealed that the German housing market has experienced the biggest price increase since the record began in 2000. According to provisional data, the cost of buying a house (the so-called housing price index) in Germany rose by an average of 10,9 percent in the second quarter of 2021 compared to the same quarter last year.
House prices have risen significantly across the whole of Germany, but particularly in its seven biggest cities: Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart and Düsseldorf. In these cities, families looking to buy a house had to contend with a 14,7 percent price increase, whilst the cost of apartments also rose by 12,9 percent in the second quarter of 2021 compared to last year.
House prices also rose in rural areas of Germany
In other urban areas, family homes rose by 11,9 percent and apartments rose by 11,9 percent in the same period.
Smaller rural areas also experienced similarly sharp price hikes, with the price of houses rising by 11,8 percent and apartments rising by 9,2 percent. The increases refer to the cost of the house or apartment and do not take into account ancillary costs like real estate tax and notary costs.