New construction prices in German conurbations rose between 4.9 and 17.4 per cent last year - for new flats more than for new houses. However, in some of the ten largest cities in Germany with comparatively low prices, the price increases are higher than in others.
Leipzig, Bremen and Dresden are currently among the cheapest, Munich, Stuttgart and Frankfurt am Main among the most expensive cities. The demand for condominiums far exceeded the supply and was above the previous year's figures in many places. In Leipzig, price momentum intensified from 15.6 per cent in 2019 to 17.4 per cent in 2020. In Berlin, Frankfurt am Main and Cologne, new-build condominiums also became significantly more expensive in 2020, with an increase of more than 10.5 per cent.
The continued price increases are an indication of the high demand. For the evaluation, the average asking prices for a newly built comparative condominium and a newly built comparative detached house were analysed in Berlin, Bremen, Dresden, Düsseldorf, Frankfurt am Main, Hamburg, Cologne, Leipzig, Munich and Stuttgart.
In which region of Germany a condominium or house is located makes a big difference financially. In Leipzig, sellers were asking an average of around 300,000 euros for a new flat. In Munich, on the other hand, the average was 770,000 euros. However, Munich recorded the lowest price increase in a city comparison at 4.9 per cent. For newly built houses, asking prices did not rise quite as strongly. Leipzig recorded the highest increase of 2.9 per cent, followed by Berlin with 2.7 per cent.
Those who can work more in a home office should look at the price level in less central residential locations. Financially, it can be very advantageous to drive a few kilometres more and save on the purchase price.
(Photo: © Thomas Wagner, Pixapay)
