During the Corona crisis, houses and apartments in Germany have become even more expensive than initially assumed – both in cities and in rural areas.
On average, the prices for residential real estate in the second quarter of 2020 were 6.6 percent higher than a year earlier, as the Federal Statistical Office announced on Thursday. Compared to the previous quarter, the prices for apartments and one- and two-family houses increased by 2 percent.
The price increases are higher than estimated in an initial estimate four weeks ago. At that time, the Wiesbaden statisticians assumed a plus of 5.6 percent compared to the same quarter of the previous year and a 1.4 percent increase compared to the previous quarter.
According to the latest calculations by statisticians, single and two-family houses were 6.5 percent more expensive and condominiums 6.1 percent more expensive in the seven largest cities in the republic (Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart and Düsseldorf) from April to June than in the same quarter of the previous year. In the other large cities with more than 100,000 inhabitants, house prices rose even more sharply by 7.3 percent, while prices for condominiums rose by as much as 8.2 percent compared to the previous quarter.
Residential property also became more expensive in rural areas: houses by at least 4.8 percent, apartments by at least 5.9 percent. The demand for living space is particularly high in metropolitan areas. Because the prices there are usually higher than in rural areas, prospective buyers also switch to rural regions. Low construction rates are also fueling the real estate market.
Video: Building land is getting more and more expensive: Square meter prices are rising (glomex)