Analysis of prices for new construction for the top 10 cities in Germany.
Prices for new home purchases continue to rise, while prices for new homes are rising less strongly.
- There is no end in sight: prices for the supply of new condominiums in German metropolitan areas rose from 4.9 to 17.4 percent in 2020.
- The dynamics of prices for new buildings developed less sharply.
- The dream of a home can most favorably come true in Leipzig, Bremen and Dresden.
- Munich, Stuttgart and Frankfurt am Main are the most expensive in Germany.
Even in 2020, the rise in prices for newly built condominiums has not been slowed down. ImmoScout24 recorded an increase in prices for the purchase of new homes in the ten largest German cities from 4.9 to 17.4 percent. Demand for condominiums far outstripped supply in the fourth quarter of 2020 under review compared to the year-ago period and even surpassed last year’s figures in many cities. Leipzig was in the first place in terms of price growth, as in the previous year. Here, the price dynamics even intensified. While prices were still 15.6 percent in 2019, they climbed to 17.4 percent in 2020. In Berlin, Frankfurt am Main and Cologne, new condominiums also expanded significantly in 2020, with an increase of more than 10.5 percent.
“There was a lot of market observers: inside the expectation that the rise in property prices will end with the Corona crisis. But just the opposite is true for new-build apartments . The continuing rise in prices is an indicator of continued strong demand and indicates that markets have not yet expanded. Because whether it is an investment object or a use itself: investing their money in concrete gold is very attractive for many people even in uncertain times, ”explains Christian Kelert, market analyst at ImmoScout24.
For the assessment, ImmoScout24 analyzed the average offer prices for a newly built condominium and newly built family home in Berlin, Bremen, Dresden, Dusseldorf, Frankfurt am Main, Hamburg, Cologne, Leipzig, Munich and Stuttgart. The reference objects were a new apartment of 80 square meters and three rooms, as well as a new house of 140 square meters on an area of 600 square meters. Listings in the Neubauhaus area are often based on quotes from home builders and their basic prices. They can increase during the planning process and usually do not take into account land prices.
Leipzig, unlike Munich, saves almost 470,000 euros when buying a new condominium
Whether you are purchasing a condominium in the south, north, east or west of Germany, real estate prices in Germany go a long way. Despite the fact that prices in Leipzig have risen so much, the city is still the cheapest city studied, judging by the average prices for new housing: suppliers: inside demanded an average of about 300,000 euros for new housing of 80 square meters … In addition, in Bremen and Dresden, the respective bid prices were below the € 300,000 threshold.
About 470,000 euros more in Munich, Germany’s most expensive region. The average purchase price for a new three-room apartment in the fourth quarter of 2020 was around 770,000 euros. However, Munich recorded the smallest increase in prices compared to cities with 4.9 percent. In Stuttgart and Frankfurt am Main, there can also only be well-to-do citizens: inside the dream of their own apartment. In Stuttgart, suppliers said: inside the new construction prices are slightly less than 600,000 euros, and in Frankfurt am Main, about 570,000 euros.
A private house in Dresden is about a million euros cheaper than an analogue in Munich
In new homes, property prices in Germany for buying bids did not rise as much from the fourth quarter of 2020 to 2019. Leipzig recorded the highest gain of 2.9 percent, Berlin followed by 2.7 percent. Dresden was the only city with a price correction last year: in the fourth quarter of 2020, sellers offered: inside their new homes 1.9 percent cheaper than in the fourth quarter of last year.
Thus, the average purchase price for new homes has dropped to around 430,000 euros in Dresden – the cheapest offer in comparison with the city. Even in Bremen with around 460,000 euros and in Leipzig with around 520,000 euros, the dream of a new home can still be realized with a comparatively low budget. The most expensive region for new homes is Munich again. Almost 1.5 million euros were claimed here on average for a house of 140 square meters. Thus, a single-family home in Dresden was about a million euros cheaper than its counterpart in Munich in the fourth quarter of 2020.
Thus, the capital of Bavaria seems to have reached its plateau. There was no further increase in the fourth quarter of 2020 compared to last year. In Hamburg, bid prices also stalled at 0.6 percent from last year’s level (around 720,000 euros).
Whether this development will continue against the backdrop of the discussed ban on new construction of single-family homes in Hamburg-Nord is doubtful. In Stuttgart, price stagnation still remained, although real estate agent in glenfield the second highest bid prices were named here. Purchase prices last year, however, rose 2.6 percent to around 1.1 million euros. Frankfurt am Main remained just below the 1 million mark with 960,000 euros.
“Those who dream of a home and also have the opportunity to work in a home office, even after the Crown, should look at the price developments and price levels in less central residential areas. Financially, this can be a big advantage to spend a few kilometers more travel time and save on the purchase price. Buyer’s interest: inside, however, attention should be paid to transport links and infrastructure at the new place of residence. The map view on ImmoScout24 shows these important factors, including the Internet and cellular communications, ”said Christian Kelert.
Methodology
Average real estate prices in Germany, i.e. per square meter for condominiums, refer to a 3-room apartment of 80 square meters, built in the last two calendar years and with well-maintained quality finishes. Average home prices refer to a 140 square meter single family home on a 600 square meter plot, also built in the past two calendar years and with well maintained quality finishes. Prices have been determined based on all new properties advertised in ImmoScout24 and equipped with these characteristics. New build neighborhood listings are often based on home construction suppliers’ bids and their base prices.
They can increase during the planning process and usually do not take into account land prices. Percentage describes price increases from Q4 2019 to Q4 2020. The entire time series was recalculated and the 2019 data was adjusted based on the added data. This leads to deviations from the reported values for the last year in some cases. Adjustments allow for a more realistic display of the market.
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