According to Immowelt AG, the corona crisis has not yet had any negative effects on the market for existing apartments. In 45 of 60 major cities examined, purchase prices have been rising since the end of last year. This is shown by an analysis by immowelt, in which the supply prices of existing apartments (40 to 120 square metres, built in 2016 or older) in the last four months of 2019 were compared with the first four months of 2020. In Berlin, supply prices have increased by 4 percent from the end of last year to the beginning of this year. Currently, an average of 4,220 euros per square metre is charged. The curve is even steeper in Leipzig. There, buyers are currently paying 9 percent more than at the end of last year. At 2,170 euros, however, the square metre costs only half as much as in Berlin.
Hardly any change in the Big 7
In the largest German cities, prices continue to rise, but not as strongly due to the high price level. In Munich, the prices on offer will increase by 2 percent. The square metre currently costs 7,650 euros in the most expensive German city; at the end of last year it was 7,470 euros. Frankfurt shows the same percentage development with prices of 4,930 euros per square meter. There are also only minor changes in Cologne (+1 percent), Stuttgart (+2 percent) and Düsseldorf (+3 percent). Hamburg (-1 percent) even shows a minimal decline. However, it is not yet possible to speak of a turnaround or even a corona effect. Instead, only minor, regular market fluctuations can be identified.
Big rises in the east and west of Germany
The immowelt analysis also shows that large increases are occurring in many smaller cities in particular, including a number of eastern German cities: Jena (+7 percent), Chemnitz (+6 percent) and Erfurt (+4 percent each) all show an upward trend. However, the price level is significantly lower compared to other regions of Germany. A similar picture can be observed in some cities in North Rhine-Westphalia. Mönchengladbach, Solingen (+9 percent each) or Paderborn (+7 percent) are just three of many examples.
However, some high-priced cities have also seen large increases since the end of 2019. Reutlingen (+9 percent), Wiesbaden (+8 percent) and Fürth (+7 percent) are all above the 3,000 euro mark. Especially in the smaller large cities, fluctuations in supply, for example a higher degree of renovated properties, are more significant than in the metropolises, for example. A long-term view over the coming months could therefore offset these effects.
This page is also available in: Deutsch