The corona phase and the home office have caused many people to rethink where they live. This was especially the case for former big city dwellers. More recently, financial reasons have also played an increasingly important role in changing spatially. Where is a good place to live today?
"Among those who left the big city, 38 percent moved to the metropolitan area. Thirty percent moved to smaller metropolitan areas between 100,000 and 500,000 residents. Only nine percent of former metropolitan residents moved to a small town and five percent to rural areas," says Mathias Dolls, deputy director of the Ifo Center for Macroeconomics and Surveys.
Asked about their plans for the next twelve months, ten percent of city dwellers say they are planning a fundamental move. Of these, 40 percent are moving to a smaller city and 22 percent to the suburbs. Small towns and rural areas are the least frequently mentioned relocation destinations.
Financial reasons are playing an increasingly important role in the decision to change location. The main cost factors are higher rents and higher energy prices. In May 2021, housing costs were still perceived as a major financial burden by twelve percent of respondents. In the fall of 2022, it was already 20 percent. Before the energy crisis, financial reasons still played a subordinate role.
Anyone looking for a property to buy now will encounter a large supply with room for negotiation. The reason for this is the subdued demand since mid-2022, which led to price corrections in the fourth quarter.
A current analysis by ImmoScout24 shows which major German cities are the most attractive for buying a condominium and where prices have fallen most significantly: According to the study, smaller cities are currently offering greater price reductions than Berlin or Munich, while at the same time scoring points for long-term value growth. For existing owner-occupied apartments, asking prices are falling most sharply in Erfurt, Jena, Braunschweig and Erlangen. The biggest price reductions for new-build condominiums are in Mainz, Regensburg, Münster and Karlsruhe.
(Photo: © Paul Henri Degrande, Pixabay)
