Top prices for luxury property in Germany’s main cities rose during the first half-year of 2016 for the most part. A mansion in Munich sold for 18.5 million euros, marking the most expensive property sale in the house segment of the market. Meanwhile, the highest price per square metre paid for a freehold apartment was 30,100 euros, for a property in Berlin. As prices differ greatly between the individual cities, luxury properties cannot be defined in terms of a fixed price range. For this reason, the study into the luxury residential property market in Germany by Engel & Völkers is focused on the highest five percent of transactions in each city. The cities examined were Munich, Berlin, Frankfurt, Hamburg, Stuttgart, Düsseldorf and Cologne. The study is based on data sourced from civic valuation committees. “The luxury segment makes up a very tiny part of the German property market as a whole. There are therefore are often strong price fluctuations within this segment, as the comparison with the previous year in the survey makes abundantly clear,” said Kai Enders, Member of the Board of Engel & Völkers AG, who added: “Another striking result is the fact that the highest prices centre around specific neighbourhoods.”
Detached and semi-detached properties: Munich, Stuttgart and Hamburg most expensive
The highest sale price for a house in our city comparison was fetched for a property in the Munich district of “Oberföhring”. This absolute top price increased over the previous year to 18.5 million euros (H1 2015: 12.6 million euros). “Oberföhring” was the Munich district with the highest revenues from house sales in the first half of 2016, accounting for 32 percent of transactions within the Bavarian city’s luxury market. In Stuttgart too, the absolute top price rose considerably over the previous year, with the sale of mansion for 11.3 million euros (H1 2015: 2.8 million euros). The district in Stuttgart with the highest revenues from house sales was “Am Bismarckturm”, accounting for 52 percent of all premium sales. In Hamburg, the most expensive property changed hands for a sale price of 8.3 million euros (H1 2015: 13 million euros). The majority of sales in the premium segment focused here on Hamburg’s so-called “Elbe suburbs”.
Freehold apartments: Similarly high prices in Berlin and Munich
In the first half of 2016, Berlin was the city with the highest price per square metre in the segment for freehold apartments. For a luxury property in the district of “Mitte”, one buyer paid 30,1000 euros per square metre (H1 2015: 19,020 euro/m²). Overall, the districts “Berlin-Mitte” and “Charlottenburg-Wilmersdorf” recorded the highest apartment sales in the German capital. The price for the most expensive freehold apartment in Munich was similarly high. An exclusive property changed hands in the district of “Sendling/Isarvorstadt” for 29,700 euros per square metre (H1 2015: 19,100 euros/ m²). The majority of Munich’s top transactions were in the districts of “Maxvorstadt”, “Bogenhausen” and “Sendling/Isarvorstadt”. The third-highest price per square metre registered in the survey was 23,400 euros for a freehold apartment in the “HafenCity” district of Hamburg (H1 2015 19,000 euros/m²). This marks the first time that this neighbourhood has exceeded traditional premium locations around the Alster lake as the most expensive residential address.
Exclusive residential towers growing more frequent across Germany’s cityscapes
In Germany’s cities, the luxury segment is currently undergoing an increased level of new development. Apartments in exclusive residential towers are in particularly high demand and are selling for absolute top prices. Unique architectural designs and spectacular views are key unique selling points here. At 2,700 apartments, the highest number of residential towers are currently under construction in Berlin, followed by Frankfurt with 2,400 apartments being built.
Outlook: Demand for luxury residential property to remain high
Engel & Völkers is anticipating the high level of demand on the luxury residential property market in Germany to continue in the near future. “We will still see prices being fetched for absolutely exceptional homes in top locations that are far above those prices generally seen on the market. At the same time, increased development will lead to a slight easing of the premium segment,” Mr. Enders commented.