Immo-Gazette 01-20: Demand in Frankfurt and the surrounding area remains high
Enormous price increases, especially in the suburban areas
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Frankfurt is one of the Big 7 locations for real estate in Germany and its dynamic development radiates far into the surrounding area. This is shown symbolically by the ever higher new buildings in the city and practically by the ever faster rising prices for living space.
As a result, interested parties are increasingly taking a look around the main metropolis. They are now accepting a distance radius of up to 50 kilometers, because in the urban area of Frankfurt, building land can practically no longer be developed. The high salaries in the economically very potent Rhine-Main region do the rest. Living space in the city center has become almost unaffordable for ordinary earners - we experience this regularly in practice.
The very high demand across all property types, locations and price ranges meets a stagnating supply. Selling offers are scarce, but seem to have been increasing since the beginning of 2020. This may already show initial fears among sellers that prices may soar.
In Frankfurt apartments for investment with one to three rooms are currently the most in demand. Buyers looking for a property for their own use prefer apartments with three to five rooms. Row houses are even more popular, but there is almost no offer for them.
In the surrounding districts, new buildings are particularly in demand, primarily apartments with two to four rooms, but row houses and semi-detached houses are also popular.
The range of new buildings in Dreieich, Langen and Neu-Isenburg is extremely rare in good inner-city locations; the situation is somewhat better on the outskirts and in new construction areas.
The square meter price for used apartments in cities like Dreieich, Langen, Neu-Isenburg rose to an average of € 3,558 in the fourth quarter of 2019, which is around € 650 above the median price for houses. In a quarterly comparison, the prices for apartments rose 2.8 percent faster than for houses, which were 1.6 percent more expensive.
New buildings under € 4,000 per m² of living space are practically no longer to be found here, but there are those that have already exceeded the 5,000 mark.
The good affordability in the low interest rate phase is another reason for steadily rising property prices. The banks are accelerating - that's our observation. Nevertheless, despite all the dynamics and also under time pressure, the duty of care must not be left behind. This includes checking the documents for property developers, for example, and determining the actual living space for used properties.
The public and the media are constantly debating whether and to what extent Frankfurt, as a stock exchange and banking city, will benefit from Brexit. We feel an increased demand for real estate in Frankfurt and the surrounding area in our area of work - but we can currently see no connection with Great Britain. The events in this country have more of an impact than the famous storm in a glass of water. But the selling point is very popular and is often used.
Another important tip: If you are thinking of selling your house in the Offenbach district or Farnkfurt and the surrounding area, let us rate it! A sound and differentiated valuation can make a big difference in sales.
text © AllGrund 2020 photography © Peter Talkenberger 2020