Wednesday, 11 January 2017

German Residential Property: Price pressure remains high.

Purchase and lease levels in residential markets across Germany are expected to keep rising in 2017. This is the result published in a market report by Deutsche Bank Research, download the report in German here

Macro-economic conditions that could indicate an end to the current price rally are not moving in that direction: Reversal of interest policy, significant increases in available property, or declining immigration, are not in sight in the foreseeable. The most dynamic city according to the report il be Munich; the high gravity for new residents and very low vacancy rate should keep prices on the rise for several years to come. This also applies to Berlin, in this case, because of the still-low price level and excellent labour market development. Frankfurt is already showing a Brexit effect in anticipation of London bankers with deep pockets, prices of single family homes have climbed 11.25 % compared to the previous year (other metropolitan areas 6%). Hamburg is showing declining lease activity and busy construction dynamics, while Düsseldorf has a relatively high vacancy rate. Rising interest would have a slowing effect on price increases in these cities.

For more in-depth information about the German property market and especially the Berlin Housing Market you might want to subscribe to this blog and visit our website


No comments: