Even in the distant future, the strong price growth of properties won’t change much – quite the contrary. Because according to the latest purchasing price prognosis of the portal Immowelt, prices in the 14 biggest German cities are expected to grow by up to 62 percent in the next eleven years, should the European Central Bank (ECB) not introduce a radical turnaround on interest rates.
Hanover just ahead of Munich and Berlin
Among these cities are Berlin, Bremen, Dortmund, Dresden, Düsseldorf, Essen, Frankfurt am Main, Hamburg, Hanover, Köln, Leipzig, Munich, Nuremberg and Stuttgart. Here, the state capital of Lower Saxony, Hanover, is considered the city with the strongest price growth with its 62 percent, even ahead of big metropolises like Berlin and Munich (with 60 percent respectively). By that, the purchasing price in Berlin is expected to rise to 6,190 €/m² (currently 3,870 €/m²) and in the already expensive Munich to the highest price of 11,380 €/m² (currently 7,110 €/m²), while Hanover with its 3,990 €/m² (currently 2,460 €/m²) will still belong to the more affordable cities.
One reason for the strong growth in Hanover is sometimes the economically appealing location and the related, high supply of jobs. Already between late 2012 and late 2017, its population grew by four percent. According to the city’s official estimates, it will raise by a total of 20,000 till 2030. According to the report, a strong increase in purchasing prices is imminent in cities like Nuremberg (58 percent) and Bremen (57 percent) as well.
Growth in the East, stagnation in the West
Growth will still be moderate in the cities of eastern Germany, which gain inflow through their increasing attractiveness. Here, Leipzig expects an increase of 40 percent (from 1.790 €/m² to 2.510 €/m²), while prices in Dresden will grow by 38 percent (from 2.120 €/m² to 2.920 €/m²). It’s a different matter in the West though: In the metropolises of the Ruhr area Dortmund and Essen, prices will rise by 21 percent (from 1.430 €/m² to 1.730 €/m²) and 24 percent (from 1.470 €/m² to 1.820 €/m²) respectively. With that, these prices literally stagnate when taking an annual inflation by two percent into account – one of the consequences of the structural transformation and its resulting outflow, from which both cities only slowly manage to recover from.
The real estate portal Immowelt regularly draws predictions by the means of its inserted offers. In this case, a statistical procedure has been applied, which factors in all relevant influencing factors, like the approximate population growth, interests, as well as consumer- and construction price indexes.
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