Real estate in Germany may rise in price by 13% within a year
German Real Estate portal Immoscout24 predicts that rental prices may rise in five major German cities, with prices in Berlin expected to be higher than in other areas.
According to the latest research by Immoscout24, property prices in Berlin could rise significantly over the next year. The forecast shows that the growth in property prices both in new buildings and in existing areas may reach 13%.
At the same time, it is expected that at the national level, cost of buying existing property may rise by 11.3% (or about 9% in new buildings).
Researchers believe that this growth is due to the consistently high demand for real estate in Germany.
At the same time, other cities of Germany are expected to develop a different situation, namely Frankfurt and Munich. Property prices in Frankfurt are expected to rise by an average of 5% over the next year for both new and existing units. In Munich, prices for newly built units may rise by only 2.5%, and prices for existing properties - by about 6%.
Overall, as noted by Immoscout24, asking prices for new real estate in Germany have increased by 59% since 2016, while prices for existing properties have risen by 63% (although it should be noted that rise in prices has begun to show some signs of decline recently).
“Strong demand for real estate purchases in Germany, as well as rising costs in the construction industry, continue to drive prices up,” said Thomas Schroeter, Managing Director of ImmoScout24. "The price trend for new apartments for sale is currently higher than inflation, and this is especially noticeable in cities such as Hamburg, Berlin and Cologne."