The BBSR (Bundesinstitut für Bau-, Stadt- und Raumforschung) an institute operated by the German federal government have published their annual research results on the German residential market. The focus was on owned single apartments (condos or condominiums). For more information in German click here.
After a longer period of price stability prices for residential property especially for condos in big cities have risen. There is no indication for a price bubble though.
The average price for used/existing condos in 2010 was at 1,160 €/m² whereas in the same period it was at 2,400 €/m² for newly built apartments (condos), more than double. For big cites the data for 2011 are available and show an increase of 3.5% for used and up to 14% for new condos (which includes newly built or newly divided existing buildings). Especially private investors view this investment type as a safe haven in view of the Euro crisis. The development is also supported by currently exceptionally good financing conditions.
Purchase Prices per square meter in 2010
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From a marco-economic viewpoint the development of the prices for condos is congruent with the development of rents. Especially in economic centers with strong growth demand for housing is high with a price driving effect on both rents and condo prices which also radiates into the nearby areas.
Condo Prices compared to rents in Germany 2010
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Berlin is considdered to be the place with the highest potential for value increase over the next years. The offer of good value condos in good locations as an investment apartment is limited and quickly over-subscribed. As a direct market access for international investors we are providing a property portal www.properties-in-berlin.com.
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