According to current data, rents in many cities have fallen significantly recently. One reason for this is the crown pandemic. However, the price of condominiums continues to rise relentlessly
FEBRUARY 15, 2021
After almost two years of stagnation, rents in Germany are falling, albeit minimally. According to the latest data, in the fourth quarter of 2020, prices decreased by 0.1 percent compared to the previous quarter. As a result, apartment rents fell in 27 of the 50 most expensive cities.
According to experts, the reason for lower rents is demographic changes. Immigration is declining slightly, while much higher mortality rates are to be expected. Crown-related deaths are also important here as a reinforcing factor.
Kempten in the Allgäu region (minus 12.9 percent) saw the sharpest decline in new leases, followed by Wunstorf in Lower Saxony (minus 9.9 percent). But in Freiburg, the figure fell by 5.6 percent.
Among the largest cities, rents under new leases fell the most in Frankfurt am Main, where rents fell by 2.1% compared to the previous quarter.
In Berlin, the trend of increasing rents has also continued to weaken. The average rate was even 6.4 percent lower than twelve months ago, or 1.4 percent lower than in the fall of 2020. The capital dropped to 126th place among the most expensive cities.
But there are also places where the cost of rent is rising. In Garmisch-Partenkirchen, for example, rents for new contracts rose by a whopping 10.6 percent in the fourth quarter compared to the third quarter. In Rüsselsheim, the growth was 7.4%.
Unlike rent, the trend of buying real estate prices is clearly upward. Prices for single-family homes (plus 0.7 percent) and condominiums (plus 0.6 percent) rose from the previous quarter. Experts believe that the rise in prices was caused by the ongoing crown pandemic and another lockdown. Even temporary construction bans, for example in the northern part of Hamburg, could not change anything.
However, there is a marked decline in Munich. Condominium prices here fell by an average of two percent compared to the previous quarter. In particular, in prestigious areas of the city, prices went down and fell below the limit of 15,000 euros per square meter, but Munich still remains the most expensive city in Germany. On average, a condominium costs about 7,000 euros per square meter.
Source: Store Manager