2013 Residential market report for Germany: Sales and rental prices go up

Contrary to almost all European countries, sales prices for residential real estate did significantly although moderately increase in Germany. For their part, rental prices consolidate booming performances of 2010 and 2011, even if price increase slowed down to reflect the price hikes for sales property. The IVD Residential Price Table for 2012/2013 quotes a 3.1 percent growth each for condominium prices and rent rates (on September 30, 2012).

Above‐average increases in prices were registered only in major cities and there only in particularly sought locations marked by good or excellent amenities. This means that the much‐touted talk of a real estate bubble in Germany is entirely unwarranted. “The price hikes must be seen in line with a catch‐up process on Germany’s residential real estate markets that has been long overdue,” explained Jens‐ Ulrich Kiessling, President of the IVD Federal Investment and Asset Management Association. The current price increases are also driven by a real demand for residential space.”

Click here to read the detailed report.