In rural districts, prices rose by 15.5 percent for single and two-family houses, while condominiums rose by 11.2 percent.
(Photo: imago images / Ralph Peters)
Berlin The prices for residential real estate in Germany rose again at a record speed in the third quarter. They grew from July to September by an average of twelve percent compared to the same period last year, as the Federal Statistical Office announced on Wednesday. “For the second year in a row, this is the largest price increase in residential property transactions since the time series began in 2000,” it said. The previous record, which was only set in the second quarter with 10.8 percent, was thus clearly exceeded.
A sharp rise in prices was not only determined in the seven largest cities of Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart and Düsseldorf, but also in rural regions. The prices for single- and two-family houses and condominiums in the large cities mentioned rose by 14.5 percent compared to the same quarter of the previous year.
In sparsely populated rural districts, the plus of 15.5 percent for single and two-family houses was even greater, while condominiums there rose by 11.2 percent. In more densely populated rural districts, prices rose by around twelve percent each time.
In metropolitan areas like Berlin, prices have risen significantly in recent years due to the strong influx of people. The real estate boom is also fueled by very low interest rates, which is why many home builders can afford higher prices. Some experts like DIW President Marcel Fratzscher are skeptical about developments in the German real estate market and warn of price bubbles.
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“There are certainly signs of bubbles in the cities in metropolitan areas,” said the Berlin researcher recently at a Reuters event. “But we don’t really see these price bubbles across the board.” Should this bubble burst and the debt then be too high, it could lead to economic upheavals.
A real estate price bubble is much more important to central banks than an overvaluation of stocks. “That’s why you have to be very careful with the real estate markets.”
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