The broad, strong price increase for residential property in Germany continued in 2020 during the coronavirus pandemic,” the Bundesbank stated. “This indicates that the regions outside the cities continued to gain in attractiveness.”
The Bundesbank gives several prices to support its findings. According to figures from the Association of German Pfandbrief Banks (vdp), the prices for residential property rose by 7.5 (previous year: 6.75) percent last year. Calculations based on information from the data provider Bulwiengesa for 127 German cities would have resulted in a price increase of 6.25 percent.
The seven major cities include Berlin, Düsseldorf, Frankfurt / Main, Hamburg, Cologne, Munich and Stuttgart.
According to the Bundesbank, “the importance of home ownership in the consumption plans of private households could have increased permanently due to the restrictions to contain the pandemic”. Rising demand for houses and apartments is driving prices. “In addition, residential real estate apparently remained an attractive form of investment in the low-interest environment, especially since the financing conditions improved once again.” In view of the low interest rates, professional investors are also relying on “concrete gold” ./ bgf /