Real estate in Germany has risen in price for the sixth consecutive year. The trend is especially pronounced in cities with a population of over 500,000. On average in the country in 2016, the growth of the square meter of the secondary housing market was 6%.
Following the rise in the value of real estate, the correlation of rental prices, which has grown by 24% on average since 2004, is not surprising.
In the primary real estate market, growth averaged 6%. In cities with a population of more than 500,000 - 9.4%. The largest growth was recorded in Frankfurt - 19%, Cologne - 15%, Stuttgart - 11%. Munich remains the leader in Germany in terms of the average cost per square meter of real estate - 4200 euros.
The head of the IVD association, who conducted this study, named the main reasons for this trend: affordable loans and a shortage of proposals, especially in large cities. It was also noted that a similar situation will continue in 2017.
In turn, an expert from Helaba bank announced that the demand for housing in Germany exceeded the supply for 350,000-400,000 apartments.