The news should surprise no one: People in Germany are having to pay more and more for residential property. Building land is also becoming more expensive.
Expensive: apartment building in Berlin Photo: dpa
Prices for second-hand homes and condominiums continue to rise sharply – especially in the big cities. Last year, buyers had to pay 10,200 euros per square meter for a home in the Munich district, 9,500 euros in Munich, and 5,000 euros each in Frankfurt am Main, Dusseldorf and Stuttgart. The national average was 1,750 euros per square meter, as the official expert committees and the Federal Building Institute announced on Tuesday. Also building land for homes is becoming increasingly expensive.
Prices for used, detached owner-occupied homes have risen by an average of 4.3 percent a year since 2009, according to the expert committees and the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR).
Prices for used condominiums also increased by an average of 4.4 percent. Nationwide, apartments are therefore most expensive in Munich with 7150 euros per square meter and on Sylt with 6,350 euros per square meter. The median price in 2018 was around 1,550 euros.
Building land for individual residential construction cost an average of 135 euros per square meter last year – in 2013 it had still been 100 euros. The annual rates of increase amounted to 4.7 percent on average, according to data from the expert committees. According to the figures, a site for building your own home is most expensive in Munich, where it costs 2,000 euros per square meter. In the Sonneberg district in Thuringia, a building plot can be had for as little as 15 euros per square meter.
"Scarce and difficult-to-build-on land in cities is a bottleneck for the expansion of new residential construction," said BBSR head Markus Eltges.
The solution to these bottlenecks lies in the region, he said: networking the city and surrounding areas is a key to success. In the vicinity of the major cities, the smaller towns and communities should become part of the solution strategy.
The Working Group of the Higher Expert Committees, Central Offices and Expert Committees in the Federal Republic of Germany publishes the Real Estate Market Report every year. It is based on real estate purchase contracts, which notaries or other offices must make available to the appraisal committees.