Postbank Housing Atlas 2022 / Property prices will rise to new heights in 2021

post bank

Bonn (ot)

  • The increase accelerates significantly compared to the previous year
  • Cities in eastern and central Germany are also becoming more expensive
  • Prices in the suburbs are rising faster than in expensive metropolises

In the second Corona year 2021, residential property prices in Germany continued to rise, and at a much faster pace than in previous years. In 98% of all German rural and urban districts, existing apartment buildings have become more expensive. On average across all regions, the inflation-adjusted price increase from 2020 was 14.2%, meaning it accelerated significantly. In 2020, the increase was 9.6%, the year before it was 9.3%. Prices have not risen only in the metropolises and, in some cases even more, in neighboring areas. The trend has also captured previously rather unnoticed cities in eastern and central Germany, such as Chemnitz or Salzgitter. These are the results of the “Postbank Housing Atlas 2022” study.

Consistently low interest rates, unbridled demand and stagnant supply have driven the real estate market in Germany in 2021. “The new housing market records are fueled by fears of rising interest rates and rising inflation. Many Germans do. they are taking refuge in concrete gold and are increasingly placing cities in the second row, after they are already considered metropolises like Munich overrated, “says Eva Grunwald, Head of Real Estate at Postbank. “The corona pandemic only strengthened the desire for one’s home and widened the radius.”

Düsseldorf with the biggest price increase, Munich still the most expensive place

The most expensive place in Germany is still Munich. Nowhere else do buyers have to pay as much per square meter as in the Bavarian state capital. The price for existing condominiums increased by a further 9.9 percent over the previous year and in 2021 it averaged € 9,732 per square meter. The second most expensive city is Frankfurt am Main, with an average of € 6,586 per square meter. In the ranking of the so-called Big Seven, the seven major German metropolises, Hamburg is third with 6,489 euros per square meter, ahead of Berlin with 5,528 euros.

Table: expensive metropolises

Prices per square meter for apartment buildings in the top 7 German cities

1.) Ranking

2.) city

3.) Price per square meter 2021

4.) 2020-2021 purchase price increase in percentage (corrected for inflation)

5.) Increase in the 2020-2021 purchase price in euros per square meter

1.) ….. 2.) ………………………………… ………. .3.) ………………….. 4.) ………. ……. 5. ) ……..

1. ...München....................9.731,59.........9,89%.........1.118,76
2. ...Frankfurt am Main..........6.586,11.........5,76%...........536,04
3. ...Hamburg....................6.488,89........13,42%...........919,90
4. ...Berlin.....................5.527,53.........8,06%...........554,84
5. ...Düsseldorf.................5.361,27........15,31%...........833,55
6. ...Stuttgart..................5.344,61.........7,23%...........500,24
7. ...Köln.......................4.897,50........11,83%..........636,33

Apartments in stock in euros

Sources: VALUE AG (market database of empirical systems), Federal Statistical Office, HWWI calculations

Düsseldorf recorded the highest price increase among the Big Seven. At 15.3%, it was significantly higher than in 2020 (9.4%) and 2019 (7.8%). Hamburg was ranked second with an increase of 13.4%. The Hanseatic city is therefore catching up with Frankfurt in terms of price levels, where prices only increased by 5.8%. Even in Cologne, the relatively cheapest city of the seven major cities, prices rose significantly by 11.8 percent. However, in 2021 a square meter costs only half as much as in Monaco.

The proximity to the North Sea is becoming more and more expensive and the district of Munich is catching up with Starnberg

The nation’s most expensive district is still located near the North Sea: in the North Frisian district, which includes the famous islands of Sylt, Föhr and Amrum, but also holiday resorts such as St. Peter Ording, the square meter of occupied apartments by the owners it cost an average of 7,977 euros last year. Again, the year-over-year increase accelerated to 14.3 percent (2020: 4.8 percent).

In addition to North Friesland, the top 10 most expensive districts include only the districts of the Munich commuter belt and the tourist regions in the foothills of the Alps. In this group, prices in the Miesbach district have risen more to 14.9 percent. , so the gap with North Frisia in 2021 is only a few euros. In the Starnberg district, growth fell to 6.2 percent, pushing the region out of third place compared to the Munich district.

For all the districts mentioned, the following applies: prices per square meter are higher than ever. Only in three of the ten districts mentioned is the average price per square meter of existing apartments below € 6,000, four of which are already above € 7,000.

Table: the top ten most expensive counties

Prices per square meter for apartment buildings in German counties

1.) Ranking

2.) City / District

3.) State

4.) Price per square meter 2021

5.) Increase in the purchase price as a percentage (corrected for inflation)

1.) ……. 2.) ………………………………. ………… 3.) …………………………….. …………. 4.) ……. ……………. 5.) …

1......Nordfriesland............Schleswig-Holstein........7.977,15.........14,27%
2......Miesbach.................Bayern....................7.973,49.........14,92%
3......München (Landkreis)......Bayern....................7.453,68.........10,12%
4......Starnberg................Bayern....................7.257,71..........6,18%
5......Dachau...................Bayern....................6.566,06.........10,06%
6......Ebersberg................Bayern....................6.343,20.........14,16%
7......Fürstenfeldbruck.........Bayern....................6.246,35..........8,53%
8......Garmisch-Partenkirchen...Bayern....................5.995,00.........10,87%
9......Freising.................Bayern....................5.961,92.........12,12%
10....Bad Tölz-Wolfratshausen...Bayern....................5.581,64...........7,71%

Apartments in stock in euros

Sources: VALUE AG (market database of empirical systems), Federal Statistical Office, HWWI calculations

Prices in the areas surrounding the “Big Seven” are rising more than in the metropolises

In terms of price dynamics, the Big Seven outperformed the cities. Berlin’s commuter belt recorded the highest increase, where growing demand met with a particularly low supply: while the plus for apartment buildings in the capital was 8.1 percent, it reached 45.2 percent in the Oder-Spree district. And although Potsdam is now almost as expensive as Berlin, prices have risen by a further 27.3%. In Dahme-Spreewald, buyers had to pay around 26% more in 2021 than in 2020 and 23.7% in Märkisch-Oderland. As a result, the differences in the price level are narrowing, but they are still there: while in Berlin in 2021 € 5,528 per square meter was owed, to Oder-Spree, for example, it was € 3,490.

“For two years, working from home has led many people to think about moving from the big city to the surrounding area. Despite the soaring prices, normal workers can still afford an apartment with a studio and garden, while family-friendly properties are not. they are found in metropolises, “says Grunwald. “But those interested need to take a closer look. Potsdam is now almost as expensive as Berlin and the price difference between Munich or Stuttgart and their more popular surrounding areas is shrinking considerably.”

In Germany’s most expensive city, Munich, prices increased by 9.9 percent in 2021, by 14.9 percent in the district of Miesbach, by 14.2 percent in Ebersberg and by 12.1 percent in Freising. . Although real estate in Hamburg increased by 13.4 percent, the surrounding districts of Segeberg (17.8 percent) and Pinneberg (17.2 percent) were able to surpass it. However, despite the rush to catch up, apartment buildings in the surrounding area are still considerably cheaper than in the Hanseatic city. The price per square meter in the Segeberg district is only about half of € 3,371 per square meter. A similar picture can be seen in Cologne, where the price increase (11.8 per cent) was followed by the districts of Rhein-Sieg-Kreis (16.3 per cent), Rheinisch-Bergischer Kreis (16.9 per one hundred) and Mettmann (13.2 percent). . Around Frankfurt am Main, for example, the district of Main-Kinzig, Groß-Gerau and the district of Wetterau experienced higher price dynamics than the city. The only exception is Düsseldorf, where the increase was even greater than in Mettmann (13.2 percent) or Duisburg (11.9 percent).

High price increases in previously cheap cities

The high prices in the Big Seven also ensure that other cities come on fire. Germany’s ten most expensive cities include Potsdam, Freiburg im Breisgau and Heidelberg, all three with prices per square meter in excess of € 5,000.

In general, existing condominiums have increased in value in all major cities with more than 100,000 inhabitants, the average price increase there over the previous year was around 12 percent. They increased the most in Erfurt with 29.5%, followed by Potsdam with 27.3% and Chemnitz with almost 22%. In Bielefeld, Salzgitter and Halle (Saale) the increase was over 18%. “There are clear catch-up effects in inexpensive cities in eastern and central Germany,” says Postbank’s Grunwald. “While the Big Seven have been climbing new heights for years, there have been no significant increases in major cities in central and eastern Germany for a long time.”

Despite the start of the recovery rush, many of these cities are still cheap compared to other German cities with more than 100,000 inhabitants. In 2021, existing condominiums in Salzgitter, Lower Saxony, cost only about one sixth of the price of 1,666 euros per square meter compared to Munich. In Chemnitz, Saxony, a square meter was available for around 1,672 euros, in the capital of the state of Saxony-Anhalt, Magdeburg, for 1,984 euros.

Table: Cities with 100,000 or more inhabitants with the largest percentage increases in prices

Prices per square meter for condominiums in stock

1.) Ranking

2.) City / District

3.) State

4.) Price per square meter 2021

5.) Increase in the purchase price as a percentage (corrected for inflation)

1.).....2.)........................3.).........................4.).............5.).......
1.......Erfurt.....................Thüringen...................3.111,41........+29,45%
2.......Potsdam....................Brandenburg.................5.325,62.......+27,26%
3.......Chemnitz...................Sachsen.....................1.671,52.......+21,70%
4.......Bielefeld..................Nordrhein-Westfalen.........2.741,35.......+19,42%
5.......Salzgitter.................Niedersachsen...............1.665,69........+18,86%
6.......Halle(Saale)...............Sachsen-Anhalt..............2.640,02.......+18,71%
7.......Wuppertal..................Nordrhein-Westfalen.........2.087,99.......+17,64%
8.......Lübeck.....................Schleswig-Holstein..........3.999,98.......+17,07%
9.......Magdeburg..................Sachsen-Anhalt..............1.984,41.......+16,90%
10......Oldenburg (Oldenburg)......Niedersachsen...............3.474,71.......+16,59%

Apartments in stock in euros

Sources: VALUE AG (market database of empirical systems), Federal Statistical Office, HWWI calculations

Don’t underestimate medium-sized cities

For those interested in buying, the so-called medium-sized cities are also worth a look. “Centers with short distances, tidy urban centers, good infrastructure and proximity to the surrounding greenery attract property seekers who can no longer find attractive properties at relatively low prices elsewhere,” says Grunwald. “However, supply in cities of this size is often lower, so even small changes in demand behavior or supply structure can lead to significant price changes from the previous year.” Among the cities of 20,000 to 100,000 inhabitants with particularly high price increases, four were in Bavaria: Hof, Amberg, Kempten (Allgäu) and Passau. The university city of Hof, located on the Saale, was still affordable with an average of € 1,884 per square meter in 2021, while nearly € 4,000 had already been billed in Kempten in the Allgäu. Prices also increased significantly in Weimar (Thuringia), Emden (Lower Saxony) and Frankenthal (Rhineland-Palatinate).

Background information on Postbank Housing Atlas 2022

The Postbank Wohnatlas is an annual series of multi-part studies that illuminate the German real estate market from various aspects at the regional level down to the district level. For the present price analysis, which is the first study part of this year’s Real Estate Atlas, the development of real estate prices in Germany’s 401 administrative and urban districts was examined under the direction of graduate economist Dörte Nitt- Drießelmann, senior researcher at the Hamburg World Institute of Economics (HWWI).

Press contact:

post bank
Oliver Rittmaier
+49 228 920 12126
presse@postbank.de

Original content from: Postbank, broadcast by news aktuell

Leave a Comment