Buying dream holiday homes

Holiday properties on the North Sea

Holidays in Germany are becoming more and more popular, and with good reason. In the north, the blue sea with good sea air awaits holidaymakers from Germany, but also from other European countries. The North Sea and the Baltic Sea convince with beautiful beaches, a good climate, excellent gastronomy and fantastically beautiful islands. Holiday properties are extremely popular, regardless of whether they are holiday flats or holiday houses. Especially the islands of Sylt, Juist and Norderney in the North Sea have high prices for local properties. Here are a few price examples for a good to very good location:

• Holiday home on Sylt/North Sea: 9,000 to 22,000 EUR/sqm

• Holiday home on Sylt: 5,000,000 and 18,000,000 EUR

• Holiday flat on Juist/North Sea: 9.000 up to 20.000 EUR/sqm

• Holiday home on Juist: 2.000.000 and 3.500.000 EUR

Holiday homes on Sylt

In the holiday home segment, Engel & Völkers again registered particularly high property prices on Sylt in 2023. For absolutely exceptional properties, the top price is 29 million euros - the same as in the previous year. Prices at Lake Tegernsee and Lake Constance remained stable at a very high level, while growth was observed at the Mecklenburg Lake District and Oberstdorf. In the holiday flat segment, Engel & Völkers again recorded price increases in the top locations of Norderney, Sylt and Lake Constance. Norderney reached a top price of 31,000 euros per square metre. This can be attributed to the extremely low supply on the East Frisian island, which can hardly grow due to strict regulations. A look at the property price development is also interesting: despite the current interest rate development, most holiday property locations continue to record stable prices. "Hardly any real estate segment shows such price stability and crisis resistance despite increased inflation and interest rate adjustments. The high demand even in geopolitically challenging times makes the holiday property market in Germany a safe haven" explains Till-Fabian Zalewski. Property prices in the holiday regions are generally significantly higher than the usual prices for residential property.

Holiday properties on the Baltic Sea

Properties on the Baltic Sea are similarly popular to those on the North Sea, but prices are sometimes somewhat lower. Here are a few examples in good to very good locations:

• Holiday flat on Rügen/Baltic Sea: 5,300 to 20,600 EUR/sq.m

• Holiday home on Rügen: 500,000 and 4,300,000 EUR

• Holiday home on Usedom/Baltic Sea: 5,500 to 11,000 EUR/sqm

• Holiday home on Usedom: 750,000 and 3,500,000 EUR
  

The trend for properties in these locations is mostly still stable. Since the trendy holiday regions on the Baltic Sea, such as Rügen and Usedom, hardly offer any opportunities for new construction projects, the few properties on offer in prime locations are in corresponding demand. On the entire Baltic Sea coast, prospective buyers are also increasingly turning to locations in the hinterland.

Holiday properties in southern Germany

In the south, the lakes, mountains and forests attract visitors with their scenic attractions and are also attractive holiday regions all year round. Accordingly, holiday properties such as holiday flats or holiday homes at Lake Constance, in the Five Lakes Region, at Lake Tegernsee, Lake Chiemsee as well as in Garmisch-Partenkirchen and in the Allgäu are very popular. The Alps and the lakes in the Alpine foothills exert a similar attraction as the northern German holiday destinations. For example, in 2023 you could buy a holiday flat in a very good residential location at Lake Tegernsee at prices between EUR 15,000 and EUR 22,000/sqm. At Lake Constance, property prices range from 5,000 to 15,000 EUR/sqm. The advantage of attractive holiday properties in Bavaria is that they can be used or rented out all year round, as it is peak season in both summer and winter. This is one reason why most buyers purchase their beautiful holiday property for their own use or as a second home and often only have rental as a secondary consideration.

Prices for holiday properties in Germany

Feeling at home on holiday - a nice idea that becomes reality with your own holiday property. Properties directly by the sea, the lake or with a mountain panorama are very popular in Germany. People often fulfil a lifelong dream by buying a property. But the particularly crisis-resistant properties in holiday regions are also in demand as capital investments.

The annual Engel & Völkers Holiday Property Market Report analyses the market for second homes, holiday homes and holiday flats in Germany's most important holiday regions. A total of 42 locations in ten different holiday regions on the North Sea and Baltic Sea, in the Alps and the Black Forest as well as on the country's largest lakes are examined in detail. In addition to the price development in all locations, the rental situation, regional characteristics and current trends are also examined.

Based on the many years of real estate expertise of our partners in the holiday regions, this market report offers you good orientation for your investment decision. If you have any further questions, we will be happy to support you with our local experts. We hope you enjoy reading this report.

Holiday property prices & interest rate development

Holidays in your own holiday property mean a very special feeling of freedom. A house by the sea or a flat in the ski region offer their owners the security and flexibility of being able to go to a place where you can enjoy your holiday and feel at home at the same time. Whether in quiet private locations or directly on the promenade between numerous restaurants - holiday properties are more in demand than ever. The pandemic has boosted demand in Germany even more, be it due to home-office opportunities or the desire to live in the countryside

The highest prices for holiday homes are being called for on Sylt and on the two Bavarian lakes, Starnberger See and Tegernsee. In very good locations, the price range on Sylt goes up to 18 million euros. For rare and special collector's properties on the island or directly on Lake Starnberg, even up to 30 million euros can be reached. In the holiday home segment, the two East Frisian islands of Norderney and Juist are also among the most expensive locations in the country. On Norderney, prices per square metre range up to 26,000 euros in very good locations, and even up to 31,000 euros for exceptional properties.

Buyers particularly like quiet locations away from the classic holiday centres. Nature, solitude and sea breezes or mountain air are in high demand. Another trend is the decreasing seasonality of holiday properties in Germany. Due to new possibilities such as home office in one's own second home or also in a rented holiday flat, the properties are increasingly being used more also in traditionally quieter seasons. Since the property is usually not used all year round by the owner, mixed use with partial renting is increasingly of interest throughout Germany. For further prices and trends in 42 German holiday regions, please also read our Engel & Völkers Holiday Property Market Report.

German holiday properties - a safe investment?

While the proportion of Germans preferring a domestic holiday to a trip abroad will ease again somewhat as the pandemic fades, the increased demand for holiday properties to buy will not remain a temporary phenomenon. Strict political regulations are increasingly preventing the construction of new holiday properties in many places, which is why prospective buyers in some holiday resorts are increasingly looking at neighbouring locations as alternatives. Overall, holiday properties in the most popular locations are considered comparatively low-risk due to their high value stability even at high prices.