Holiday properties in Germany: Prices continue to rise in many locations as demand remains strong
Hamburg, 06 May 2016. Engel & Völkers has published its “Market Report for Holiday Properties in Germany” for the third time. This in-depth analysis of Germany’s holiday and second home market includes price ranges for holiday houses and apartments for sale in the first quarter of 2016 in 22 locations on the North and Baltic Sea, as well as in the German Alpine region. Another focus of the study involves exceptionally high asking prices for outstanding properties in prime locations. “Germany is becoming increasingly attractive as a place to own a second home. The availability of properties at top addresses is extremely limited however. In some places as a result, we are also seeing prices rise even for homes in close proximity to these hotspots,” said Kai Enders, Member of the Board of Engel & Völkers AG, adding: “The markets in holiday regions are relatively small, with an extremely limited number of properties for sale. The prices fetched can vary depending on the period under consideration.”
Holiday homes: highest prices on Sylt and Tegernsee
The highest asking prices for holiday homes are currently found on the islands of Sylt and Norderney, and on the banks of the Tegernsee lake. Outstanding properties on Sylt were on the market for up to 15 million euros in the first quarter of 2016. On Tegernsee, prices reached as much as approx. 10 million euros. “Outstanding properties are set apart by their special location, and their exceptional furnishings and amenities. Sale prices for properties of this calibre are quite independent of average prices on the market,” said Mr. Enders.
Whilst prices in established locations have stabilised at a high level, prices for holiday properties in other places are rising. Rügen is an exception amongst the island and coastal destinations, where the price range in prime locations has increased considerably. Garmisch-Partenkirchen, Ostallgäu and Chiemsee in the Alpine region have also seen significant price rises. The top end of the price range for holiday homes in prime locations on Chiemsee rose from 2.8 million euros in 2015 to 3.5 million euros in the first quarter of 2016. Meanwhile, outstanding properties were on the market for as much as 10 million euros.
Holiday apartments: sharp price rises on islands of Rügen and Usedom
In holiday regions along the Baltic coast in the German state of Mecklenburg-Western Pomerania, holiday apartments are profiting from high prices overall in the well-established tourist destinations. Asking prices for lavishly refurbished historic apartments on Rügen reached up to 14,000 euros per square metre in exceptional cases in the first quarter of 2016. Outstanding modern apartments on Usedom and in Warnemünde were on the market for up to 10,000 euros per square metre. “Prices in these locations can now be compared with those in Germany’s major cities,” said Mr. Enders.
In some regions, prices for holiday apartments are stabilising at a high level due to building restrictions and the limited potential for new houses as a result. The minimal availability of holiday apartments in very good locations has also led to a rise in prices in good locations in more than half of the destinations investigated in the report. This trend is particularly apparent in Warnemünde on the Baltic Sea and on the East Frisian island of Juist.
Buyers value proximity to holiday regions
German natives make up the majority of buyers of German holiday properties. In all regions, many buyers even have their first home in neighbouring federal states. Many buyers of holiday homes on Sylt in the Bay of Lübeck, for example, live in Hamburg and the state of Schleswig-Holstein. Bavarian clients form the main buyer group in the Alpine region. “Owners frequently make use of their holiday home at weekends as well, and therefore appreciate being able to reach it quickly,” said Kai Enders.
Outlook: High demand leading to further price rises in some locations
The limited availability of holiday properties in many places, coupled with a continuing high level of demand, is causing prices to rise in the long term. Engel & Völkers anticipates that prices for holiday apartments in very good locations will continue to rise in many of the locations investigated in the report. The price trend for holiday homes in Germany’s most popular holiday regions is also set to continue. “In more than a third of the places we surveyed, we are expecting to see further price rises in the prime locations,” Mr. Kai Enders added.
You can download the “Market Report for Holiday Properties in Germany 2016” (in German) here: