Market Report Germany 2013/2014

Titelbild-MarktberichtWohnimmDFor several years now there has been a significant rise in rental and sale prices, particularly in German’s urban centres and holiday regions. While prices in most metropolitan areas remained at the high level of the previous year in the first half-year 2013, smaller university cities and numerous towns and regions in East Germany have closed in on these price highs. These are the findings of the “Market Report on Residential Property in Germany 2013/2014”, which is published by Engel & Völkers for the first time. The market report provides an overview of the current market and price developments for detached and semi-detached homes, freehold apartments and rental properties in 50 different locations.

Munich and Hamburg ahead of Berlin

The highest absolute transaction volume for freehold apartments was achieved in Munich in 2012 at around 3.80 billion euros, closely followed by Berlin (approx. 3.79 billion euros). With a revenue volume for detached and semi-detached homes of approx. 1.30 billion euros, Hamburg leads the ranking list in terms of absolute transaction volume for this segment of real estate. The high price level has also seen smaller-sized cities such as Freiburg and Mainz en-tering the ranking list for the top 20 cities with the largest transaction volumes.

Munich, Hamburg and Berlin also lead the ranking list in terms of sale prices achieved by En-gel & Völkers. As a result of the strong demand for second homes, very high prices are also being recorded in designated holiday regions such as Sylt and Tegernsee.

Average locations are catching up

Attractive new building projects are taking shape at average locations in many places, which is seeing price levels rise in individual micro-locations. Addresses and districts that border onto traditionally prime locations are promising a large potential for appreciation in value.

Wanted: Student apartments

Low interest rates on mortgages and dwindling confidence in the Euro over recent years have led to a growing interest from small-scale investors in residential and holiday properties that are suitable and easy to rent out. Freehold apartments that are rented out to students are very much in demand, particularly in university cities such as Münster, Freiburg and Constance. Also cities in Eastern Germany such as Leipzig are showing high potential.


Many regions are just at the outset of their upcoming phase of growth. Others have already undergone significant expansion over the past years. Prices here may level off at the current high as a result, whilst in some individual micro-locations these highs could be exceeded once again.


The market report is only available in German. You can order the market report here.

Read the entire press release here.


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