Development of Property Prices in Major German Cities

If we look at the stats, Leipzig is one of the largest cities in Germany and has bagged the eight positions with over 600,000 people spending their best life. This population rate has impacted the real estate market as well, and according to Timo Pinder, the rental prices of the homes and other real estate are increasing with each passing day. However, the acceleration level is moderate.

According to the latest report published by the PISA market report, the rents have increased by 5% since 2018, and the rent increment is based on 6.70 per square meter.  In 2019, the asking rental price increased by 6%, which reflects the flat price curve. However, the growth rate hasn’t doubled in the last two years, and these occupancy rates will ensure the dynamic development of rental prices at a moderate rate.

In the case of refurbished and newly constructed buildings, the percentage has spiked to 6.2% according to 8.7 per square meter. There are over 63 districts, and with each square meter, there is a price difference of ten to twelve euros. However, the occupancy rate is least in Grünau-Nord with five euros. The real estate agent from Leipzig have been helping people find the rooms on optimal occupancy rates and rental prices.

In the existing apartment listings, there are no outliers, and there are twelve districts where the rents are lower than six euros per square meter basis. In Grünau-Ost, the range has extended from 5.31 euros to 8.88 euros. Also, there are no outliers, and the development has been uniformed to reflect a positive sign on the existing apartments.

These stats are posing a healthy and positive image of the market, and it’s needless to say, the asking rental price has been experiencing the increase, and the reason lies in higher investment costs and zero disruptions in influx. In the case of rising rents, the project developers aren’t making any losses, be it the new buildings or renovated buildings.

According to PISA’s managing director, Timo Pinder, there is no tense situation in the real estate market of Leipzig, and if there are any such news, they are incorrect. The lesser rental price is shedding light on the lower income levels of the population. In other words, people of Leipzig have a lower income level, which has led to lower rental prices.

When it comes to Leipzig, new buildings are being built, and according to market research, the coming two years are exhilarating for the real estate market. There are over 347 apartments in the Heeresbäckerei, while Parc du Soleil has over 180 apartments. Besides, old Krystallpalast is full of residential and student apartments, numbering 175 and 164, respectively.

By the year 2023, there will be over 600 apartments in Darmstadt, which is shedding light on a slow and gradual rise in the rental prices. Besides, there might be overheating, but the numbers are rising at a moderate level. In conclusion, the vacancy rate has been experiencing the rise as well with relocation options. Last but not least, there is nary downtime, and modular construction is enabling a moderate increase in price.

The post Development of Property Prices in Major German Cities appeared first on Market News Bizz.

About the author

Sharan Stone

Sharan Stone

Sharan comes to Market Research Tab with more than 7 years of experience as an editor. Sharan has his fingers firmly placed on the pulse of the business world and he covers retail, construction, and other industries as an editor for Market Research Tab. Email: [email protected]

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