Real estate prices in Germany increased by 3.6% in the 1st quarter compared to the same period last year. They increased especially strongly in the largest cities, including Berlin, Cologne, Frankfurt and Munich.
Housing prices in the seven largest cities increased by 4.6%, according to the association of German banks Pfandbrief (vdp), specializing in financing residential and commercial real estate.
Year-on-year price increase by city:
- Cologne - 5.2%
- Frankfurt - 5.2%
- Berlin - 4.9%
- Hamburg - 4,6%
- Munich - 4.5%
- Dusseldorf 3.2%
- Stuttgart 1.9%
Quarterly growth in large cities is higher than the national average (1.8% versus 1.2%).
"The housing shortage is becoming more and more serious," said vdp Managing Director Jens Tolkmitt. According to him, the coalition agreement concluded between the Conservatives and the Social Democrats, who recently took office, contains promising approaches to housing, but the implementation of these approaches is important.
The cost of rent is also growing: prices for apartment rentals under new contracts have increased by 4.3% on average across the country, and by 4.4% in large cities. The most significant increase in rents was recorded in Berlin - almost 5%.
Source: Newsbreak
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