The prices for residential estates increase from year to year, the price per square metre in Munich in the past years around 95%.
The reason for that ist he city life. It gains more and more popularity like the interest in the real estate market in germanys biggest cities, but not all cities will evolve the same.
In numbers: with a population growth of 1% the price for urban condos has an increase of 3,5% however, the growth rates of the last 10 years could soon be over, many of the currently growing cities won’t grow any more in the future, despite the refugee immigration.
Concerning this the Posbank has examined the 36 biggest cities in Germany from which it is apparent that Berlin can expect a population growth of 4,7% until 2030, due to the refugees. Therefor Berlin is in the lead, closely followed by Potsdam with 4,5% and Hamburg with 4,4%. The prices for condominiums in Berlin will increase by 14,5% and without the immigration of the refugees it could only expect 6% or less.
The city of Munich, which has the highest rental prices in the entire country, can only expect a price increase of 1,6% until 2030.
However, the rising price per square
meter is only indirectly linked to the influx of refugees. The
so-called „Kaskadeneffekte“ are the reason for that. A short
explanation: a higher rate of refugees growing demand on cheap living space scarcity of socially promoted living space. This increases the demand
for expensive living space. The result is a growth the level of rent
and the growth of the request of condos.
In conclusion it is to say that the increase, albeit not as fast as in recent years, will continue and a real estate investment in growing cities or their surrounding area is a sensible idea.
This is the way team Dominart Real Estate spends their time on a weekend trip in Riga.