As the German economy recovers after the recession brought on by the pandemic of the coronavirus, the housing market in Germany continues to boom.
The average apartment price rose by 9.59% in the first three months of the year. This follows a rise of 11.42% in Q4 2020 and 12.14% in Q3, as well as a 10.85% in Q2 and a 12% in the first. Housing prices have shown a weekly increase of 2.09% in the first quarter 2021.
The German housing market has been steadily expanding over the last six years. House prices have increased by 67% since the first quarter 2014. Low interest rates, urbanization and household prosperity continue to fuel the demand for real estate. The real estate market continues to grow despite the pandemic. Recent migration crises and economic growth have also increased demand.
Germans and residents of the European Union are choosing to live in large cities more often. A large labor pool, a developed infrastructure and mobility are the primary indicators that cities are attractive. According to the Federal Statistical Office, (Destatis), construction permits increased by almost 20%, to 95,916. This follows a 2.2% growth per year in 2020.
Rent rates are rising, and so is the demand for higher-priced rental apartments. The demand for buying apartments and houses has also increased, leading to very high prices of both new and second-hand real estate.
The German real estate market continues to grow despite the pandemic. This is why now could be a great time to invest in this opportunity. Greatsky Consulting LLC provides a range of profitable investment options to both new and existing clients. Send us any questions or requests using the contact form located on our homepage.
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