Real estate prices and demand continue to rise in 2020

In the first quarter of 2020, prices for residential properties were 6.8% higher on average than in the first quarter of 2019, with significant price increases recorded in both urban and rural areas. Demand for housing has risen sharply again following the coronavirus lockdown. What is perhaps surprising is that demand for retail space remains high after the coronavirus crisis.  

The rise in residential real estate prices was by no means limited to the top 7 cities of Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart and Düsseldorf. According to the Federal Statistical Office, detached and semi-detached houses were around 9.5 percent more expensive and condominiums around 7.4 percent more expensive than in the same quarter of the previous year. In other large cities - with populations of 100,000 or more - house prices also rose by 8.3 percent and prices for condominiums by as much as 9.3 percent. Even less densely populated rural districts experienced an above-average price increase of 6.1 percent for houses and 4.9 percent for condominiums.

Corona increases demand

During the coronavirus crisis in particular, many Germans have spent most of their time within their own four walls. This has apparently made many people dissatisfied with their property and awakened a desire for change. Demand for real estate and other living space has risen sharply since the lockdown. Demand for rental properties rose by 37 percent.

The high demand for property is closely linked to the price stability of real estate during the crisis. In contrast to volatile markets such as share trading, prices on the real estate market have not collapsed. On the contrary: both rental and purchase prices are actually continuing to rise. This means that real estate is still proving to be a crisis-proof investment.

Retail space on the upswing

But it is not only residential real estate that has experienced a surge in demand after the lockdown. Demand for retail space is also on the rise again. After the coronavirus crisis initially caused enormous uncertainty in the retail sector, demand jumped again by 97.4% after the lockdown. In June, providers of retail space for rent across Germany again received as many contact inquiries as at the beginning of 2020. If you look at the development of demand year-on-year, you can see that the need for retail space is still very high and has even increased since last year.

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Did not find what you were looking for:

https://www.destatis.de/DE/Themen/Wirtschaft/Preise/Baupreise-Immobilienpreisindex/_inhalt.html

https://de.statista.com/statistik/daten/studie/6654/umfrage/immobilienpreise-fuer-eigentumswohnungen-in-deutschen-staedten-2008/

https://de.wikipedia.org/wiki/Immobilienmarkt

Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific individual case.

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