Quality of life in Germany remains high. According to a study by the OECD, roughly 60 % of Germans are apparently satisfied with their lives. A good infrastructure, employment opportunities, social security and good working conditions mean that Germany offers a high quality of life and is an attractive place to live.
High demand for housing
It is not surprisging, that the demand for residential property in Germany remains high in metropolitan areas, many of the major cities and university towns, as well as in smaller affluent locations with a high level of purchasing power and desirable holiday destinations. Residential prices continue on an upward trend accordingly, albeit with noticeable variations between regions. These are the findings of the “Market Report on Residential Property in Germany 2014/2015″, published by Engel & Völkers.
Munich is the frontrunner in terms of residential property prices
“We are witnessing the highest prices for apartments in the cities of Munich, Hamburg, Berlin, Frankfurt, Cologne, Stuttgart and Düsseldorf,” said Kai Enders, Member of the Board of Engel & Völkers AG. In the first half-year of 2014, up to 16,000 euros per square metre were paid for freehold apartments at very good addresses in Munich and Hamburg, closely followed by Berlin, where prices of up to 15,000 euros per square metre were achieved. In the segment for detached and semi-detached properties, price highs of up to 13 million euros were reached at very good addresses in Munich. In addition to major cities, top prices of as much as 10 million euros and 5.5 million euros were also registered in the smaller yet affluent locations of Starnberg and Baden-Baden, respectively. The maximum price attained in Bad Homburg was 5 million euros. In all locations surveyed, unique homes in the most sought-after premises were sold for sums far in excess of the price highs quoted.
Transaction volume: Berlin cracks the one billion euro mark
The high prices for residential property in smaller, prosperous locations are reflected in the relatively high positions for these towns in the ranking list for transaction volume in 2013. In the segment for detached and semi-detached properties, for example, Bad Homburg reached a transaction volume of 107.9 million euros, coming in 26th place ahead of major cities like Dresden and Leipzig as a result. Baden-Baden comes in 34th place at 60.8 million euros in revenues, with Starnberg securing 38th place as the smallest location with around 23,000 residents (53.9 million euros). The top position, as in the previous year’s ranking, was achieved once again by Hamburg at 1.315 billion euros, followed by Berlin at 1.159 billion euros. The German capital also registered the highest growth in revenues amongst the Top 10 cities, at 16.4 percent over 2012, breaking through the billion euro mark for the first time. Moreover, Berlin has overtaken Munich to take first place in the ranking list of absolute transaction volume for freehold apartments, at a volume of 4.332 billion euros.
Do you want to read more? Our market report provides a comprehensive overview of the current market and price developments for detached and semi-detached homes, freehold apartments and rental properties in 60 different locations. The in-depth atlas is based on the market expertise of Engel & Völkers Shops in Germany, as well as data collated in the respective official reports from the Property Value Committee.