Berlin: Property prices are rising again

Real estate prices continue to rise. The top 7 cities in particular are recording very good real estate growth once again. Berlin has the absolute leading position.

Berlin is popular among real estate buyers. Even though the growth is slower, property prices are still increasing. Source: pexels.com

As the Hamburg World Economic Institute and the private bank Berenberg have recently reported, Berlin is Germany’s most competitive and future-proof city. The 30 largest cities in Germany were considered for the ranking. A so-called trend index, a demographic index and a location index were determined for each location. The first index indicates the economic performance. The demographic index primarily measures the future age structure, while the location index primarily records parameters such as education, innovation, internationality and infrastructure. For the first time, Berlin made it to the top of the ranking, moving forward from fifth place. Leipzig took second place this year. Munich, in third place now, was last year’s leader.

Berlin convinces in all respects

A high population growth and falling unemployment combined with excellent infrastructure and great internationalism put Berlin in first place in the city ranking. Due to the very good forecasts for the Berlin labour market with an increasing number of people in employment, the German capital also has very good future prospects. Since the metropolis is also a very young city, many companies are attracted to Berlin, which in turn benefit from the high density of skilled workers. Other industry experts also share the Hamburg institute’s assessment. The price indices of the Association of German Mortgage Banks (Verband deutscher Pfandbriefbanken “vdp”) for Berlin show double-digit price growth.

German price index shows double-digit growth for Berlin

According to the vdp publication, the increase in property prices in Germany as a whole slowed down, but the growth rates compared to the previous year are more than satisfactory. Using transaction data from real estate financing from German banks, it was determined that the prices for condominiums in Berlin in 2018 still increased by 10.6 percent compared to the previous year (2017: +17 percent). This means that the German capital has the biggest price growth. After Berlin, prices for condominiums rose the most in Frankfurt. A purchase price increase of 9.3 percent was determined for the metropolis at the river Main (2017: 12.3 percent). The third best development achieved Stuttgart with a price increase of 7.6 percent (2017: 11.2 percent). In addition, Stuttgart also exceeded the rental price growth of the previous year. Rents here rose by an average of 4.6 percent in 2018. Fourth, fifth and sixth place in the vdp ranking are Cologne, Düsseldorf and Munich.

This page is also available in: Deutsch