The districts around Munich were particularly affected

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Of: Catherine Brown


Property prices will continue to grow significantly in 2022. © Bernd von Jutrczenka / dpa

Property prices skyrocketed in Corona’s second year. Nine of the ten most expensive districts are located in the Munich area.

Munich – Munich * is still Germany’s most expensive city – but property prices in the surrounding area are also climbing to record highs: in Munich’s bacon belt, apartment buildings * are now more expensive than ever. This is the result of the new “Postbank Housing Atlas 2022”. Nine of Germany’s top 10 most expensive districts are located in Upper Bavaria: only in North Frisia, on the North Sea, are prices per square meter slightly higher.

Corona’s second year pushed condominium prices up across Germany: in 2021 they increased by an average of 14.2 percent. The previous year the increase was 9.6%. The reasons for this were consistently low interest rates and unbridled demand. “The new real estate market records are fueled by fears of rising interest rates and rising inflation,” says Eva Grunwald of Postbank. Many people have therefore invested in real estate, especially since the pandemic has increased the desire to own a home.

Rental market in the Munich area: Prices in the surrounding area are rising more than in the cities

Of the ten most expensive neighborhoods in Germany, condominium prices in Miesbach * have risen the most: in 2021, 7,973 euros per square meter were paid here. This is a 14.9 percent increase over the previous year. Even in the state capital, prices have not risen so drastically: at around 9,730 euros per square meter, apartments in Munich are almost 9.8 percent more expensive than in 2020. In the districts of Ebersberg (14.2 percent), Freising * (12.1 percent) and in Garmisch-Partenkirchen * (10.9%) prices increased significantly more than in Munich. Only in Starnberg (6.2%) did the increase weaken slightly compared to the previous year.

According to Postbank experts, the price gap between the metropolis and the surrounding neighborhoods is narrowing: in Berlin, for example, the plus for apartment buildings was 8.1 percent in 2021, in the Oder-Spree district instead , was 45.2 per cent. Potsdam is now almost as expensive as Berlin, but prices have risen by 27.3 percent. Interested parties should “take a closer look,” says Grunwald.

Real estate prices: Germany’s most expensive cities – strong increase even in large cities that have so far been cheap

Due to high prices in major metropolitan regions, according to the housing atlas, other major cities are now in focus. Potsdam, Freiburg im Breisgau and Heidelberg are now also among the most expensive cities in Germany: all three have crossed the 5,000 euro mark with their prices per square meter. Overall, condominiums in large cities will be 12% more expensive in 2021 than in 2020.

Property prices have risen significantly, especially in large cities in eastern and central Germany: by around 29.5 percent in Erfurt and by nearly 22 percent in Chemnitz. But: Compared to other German cities, condos are still cheap here. In Chemnitz, for example, buyers pay 1,671 euros per square meter, only about one sixth the level in Munich. Apartments in Magdeburg are available for 1984 euros per square meter.

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Property prices continue to rise: experts recommend medium-sized cities

For those interested, cities with 20,000-100,000 inhabitants are worth a look: “Centers with short distances, tidy urban centers, good infrastructure and proximity to the surrounding green area attract property seekers,” says Grunwald.

However, the supply in these cities is often lower, which is why prices have risen significantly here too. In Bavaria, there were particularly high increases in Hof, Amberg, Kempten and Passau. The university city of Hof is still “affordable” at 1884 euros per square meter – in Kempten in Allgäu, however, buyers have to pay 4000 euros. (Kathrin Braun) * is an offer from IPPEN.MEDIA

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