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Prices for residential real estate rise noticeably despite Corona

2020-09-24T08:15:06.371Z


Living space remains scarce. Despite corona lockdowns, purchase prices rose noticeably in the second quarter. Nevertheless, the Federal Statistical Office can report a positive trend.


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Residential district in Hamburg: declining dynamism

Photo: Daniel Bockwoldt / DPA

Despite the severe Corona recession, the prices for residential real estate in Germany also rose in the spring.

In the second quarter they were an average of 6.6 percent higher than a year earlier, as the Federal Statistical Office announced on Thursday.

Compared to the previous quarter, apartments and one- and two-family houses cost two percent more.

"This means that despite the corona crisis, residential real estate continued to become more expensive both in the city and in the countryside," emphasized the statisticians.

In the spring, the German economy shrank by a record 9.7 percent due to the pandemic.

In the seven largest cities of Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart and Dusseldorf, the prices for single and two-family houses rose by 6.5 percent between April and June compared to the same period in the previous year, and those for condominiums by 6.1 percent.

"The rise in prices for residential real estate in metropolitan areas thus continued, but the momentum for apartments continued to decline," said the Federal Office.

In spring 2019, the premium for condominiums was 7.9 percent, a year earlier it was as much as eleven percent.

In other large cities with more than 100,000 inhabitants, house prices have recently increased by 7.3 percent, the prices for condominiums by 8.2 percent.

"In rural districts, too, residential real estate became more expensive on average," noted the statistical office.

The prices for houses in more densely populated rural districts rose by 8.9 percent, for condominiums by 5.9 percent.

In sparsely populated rural districts, single and two-family houses cost 4.8 percent more than a year earlier, while apartments rose by 6.6 percent.

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mik / Reuters

Source: spiegel

All business articles on 2020-09-24

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