
Real estate prices and demand continue to rise in 2020
The rise in residential property prices was by no means limited to the top seven cities of Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart, and Düsseldorf. According to the Federal Statistical Office, single-family and two-family houses were around 9.5 percent more expensive than in the same quarter of the previous year, while condominiums rose by around 7.4 percent. In other large cities with 100,000 or more inhabitants, house prices rose by 8.3 percent and prices for condominiums by as much as 9.3 percent. Even less densely populated rural districts experienced above-average price increases of 6.1 percent for houses and 4.9 percent for condominiums.
Corona increases demand
During the coronavirus crisis in particular, many Germans spent most of their time within their own four walls. This seems to have left many dissatisfied with their properties and sparked a desire for change. In any case, demand for real estate and other living space has risen sharply since the lockdown. Demand for rental properties rose by 37 percent.
The high demand for property is closely linked to the price stability of real estate during the crisis. Unlike volatile markets such as stock trading, prices on the real estate market have not collapsed. On the contrary, both rental and purchase prices are continuing to rise. This proves that real estate is still a crisis-proof investment.
Retail space on the rise
But it is not only residential real estate that has experienced a surge in demand after the lockdown. Demand for retail space is also rising again. After the coronavirus crisis initially caused enormous uncertainty in the retail sector, demand jumped by 97.4 percent after the lockdown. In June, providers of retail space for rent across Germany received as many enquiries as they did at the beginning of 2020. Looking at the year-on-year development of demand, it is clear that the need for retail space remains very high and has even increased since last year.
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Not found:
- destatis.de: Construction prices Real estate price index
- statista.com: Real estate prices for condominiums in German cities 2008
- Wikipedia: Real estate market
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific case.
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