Residential houses in Munich: stable price development
Photo: Sven Hoppe / picture alliance / dpaApartments and houses in Germany have become more expensive despite the corona crisis. In the second quarter, the prices for residential real estate rose by an average of 1.4 percent compared to the first quarter of the year, the Federal Statistical Office announced on Wednesday. Compared to the same period last year, there was an increase of 5.6 percent. The Wiesbaden statisticians explained that the growth was in line with the previous quarters. However, it is a flash estimate that is fraught with a certain degree of uncertainty.
According to the analysis, the immense economic consequences of the pandemic have so far hardly affected the real estate boom. In the first quarter, the Wiesbaden statisticians had found an increase in real estate prices of 6.8 percent within the year and 0.3 percent in the final quarter of 2019. Above all in big cities, but also in the countryside, there were heavy surcharges.
The corona pandemic has had an impact in Germany since spring and had a full impact on economic development in the summer quarter. Some economists had therefore expected a severe setback on the housing market and expected falling property prices. The number of apartment advertisements fell by up to 40 percent during lockdown.
Short-time work, falling incomes and rising unemployment in the Corona crisis are burdening the financial situation of many people, which limits the scope for real estate purchases. On the other hand, in the face of wildly volatile stock markets, many investors are looking for security in real estate, and the low interest rates continue to make loans cheap.
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