Existing and new apartments in Germany are becoming more and more expensive

Frankfurt / Berlin (dpa) – Buyers of condominiums and builders have to dig deeper and deeper into their pockets. According to a study, the average price for condominiums in Germany continued to rise in the past year.

In addition, there are rising construction prices. In August of the current year, according to the Federal Statistical Office on Thursday, the price of new apartments was higher than it has been since 1970.

The prices for condominiums rose on average from 2019 to 2020 by 10, 2 percent to 225. 242 euros, as from an analysis by the Institut der deutschen Wirtschaft (IW ) and the real estate service provider Accentro. In Berlin, Munich, Hamburg, Dusseldorf, Stuttgart, Cologne and Frankfurt / Main the prices climbed accordingly 10, 8 percent above average strong, there buyers had to average 429. 007 euros for Put a condominium on the table.

For the study, the purchase prices for apartments in 81 German cities were evaluated. From the one-room apartment to the large luxury loft, all apartments were taken into account that are located in a divided residential building and can be purchased by private individuals.

Munich and Hamburg front runner

Particularly expensive are apartments in Munich, according to the property report. In the year 2020 the price for a condominium in the Bavarian capital was on average almost 580. 000 Euro. Hamburg ranks just behind with just under 503. 000 euros. The cheapest location in the comparison of the 81 examined cities is the university town of Gera in the east of Thuringia. According to the information, a condominium there costs on average 58 511 euros.

According to the evaluation, there was a sharp rise in prices for condominiums compared to the previous year in Osnabrück, Oldenburg, Koblenz and Heidelberg. There the prices climbed by 30 percent and more. By far the greatest increase in prices for condominiums in Wolfsburg: by almost 86 percent. This increase is mainly due to the sale of very high-quality apartments.

At the same time, prices for new construction of conventionally manufactured residential buildings are rising. According to the Federal Statistical Office, in August they were 12, 6 percent above the level of the same month last year. According to the Wiesbaden authority, the last increase was in November 1970 with 13, compared to 1 percent the same month last year.

Influence of VAT

With the current increase, the reversal of the temporary VAT reduction also plays a role. In order to stimulate consumption in the Corona crisis, the federal government had limited the VAT from July 1st 2020 to 31. December 2020 lowered. The regular VAT rates have been in effect again since January 2021. Without this effect, according to the Federal Office, the construction prices would have risen by 9.7 percent in purely mathematical terms.

Added to this are increased material costs. According to statisticians, construction timber was 5 percent more expensive than a year earlier in August of this year 46 due to the increased demand at home and abroad. Increased material costs caused difficulties, especially in ongoing construction projects, reported IW real estate expert Michael Voigtländer: “There are project developers who have problems because they sold at fixed prices some time ago and now find that the costs are getting out of hand.” Further burdens are a shortage of skilled workers in the handicrafts and expensive building plots.

“Due to the rising building prices, which are historically high, an existing property is much more interesting for the population than a new building,” said Lars Schriewer from Accentro. The high construction costs will not change anytime soon as long as the logistics problems caused by Corona persist.

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