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Banks: Real estate prices attract strongly in metropolises
The days of falling prices are over on the real estate market. Houses and apartments are becoming clear at the beginning of the year. Especially in the metropolises it goes up – even in rents.
The prices for houses and apartments in Germany attract again – especially in the largest cities. In the first quarter, residential properties in the nationwide average were 3.6 percent more expensive than a year earlier, new figures from the Association of German Pfandbrief Banks (VDP) show.
It was particularly strong in metropolises such as Berlin, Frankfurt and Cologne with around five percent, reports the association, which represents the most important real estate financiers in this country.
Frankfurt and Cologne at the top
In the seven German metropolises, residential properties were 4.6 percent more expensive compared to the first quarter of 2024. At the top, Cologne and Frankfurt were 5.2 percent each, followed by Berlin (4.9), Hamburg (4.6) and Munich (4.5). In Düsseldorf and Stuttgart, the growth was 3.2 and 1.9 percent more moderate.
“The lack of living space is getting bigger,” said VDP general manager Jens Tolckmitt. “The challenges in housing policy could hardly be greater for the new federal government and the Federal Ministry of Building.” The coalition agreement contains promising approaches, now count the implementation.
Rents are also increasing vigorously
Measured on the previous quarter, the final quarter 2024, real estate prices in the metropolises increased by 1.8 percent – also more than in nationwide average (1.2 percent), according to the VDP. He regularly presents real estate figures based on transactions of over 700 banks.
The rents also increase strongly: the new contract rents in apartment buildings climbed by 4.3 percent on average within a year and 4.4 percent in the metropolises, including the strongest in Berlin with almost five percent.
The numbers show that the real estate market is increasingly recovering from its cooling. In the national average, the price increase for apartment buildings was particularly great – a sign that investors are again more committed.
Relaxation after market cooling
Real estate has noticeably binded off after years of boom since the highlight of 2022. The trigger was a strong increase in interest rate that made loans more expensive. Many people could no longer afford their own four walls, sellers had to reduce their prices. Real estate prices have stabilized since last summer.
The VDP general manager Tolckmitt expects further rents and prizes. However, the increase at the beginning of the year should not be overrated. This is how the environment has clouded – for example by the customs dispute with the USA and the increase in capital market interest rates, the real estate loans.
dpa
Source: Stern
