Whether renting or owning a home - housing remains expensive

The interest in real estate remains high even under significantly changed conditions on the real estate market. Those who are now looking for a rented flat or a home of their own must expect rents to rise sharply or property prices to remain relatively high.

The Federal Statistical Office gives sober figures: 3.1 million households had a rent burden of 40 per cent or more in 2022, 1.5 million households even spent at least half of their income on net cold rent and operating costs. The gross cold rent per square metre nationwide averages 8.70 euros. The rent burden ratio for households that moved in after 2019, single-person households and households in large cities is above average.

Immoscout24's Housing Barometer confirms that the increases in both rents and property prices will continue in 2023. In new construction, asking rents rose by up to 19.9 per cent year-on-year. There are also increases in the existing stock of up to 12.3 per cent within one year. The inflation rate for new rental flats in the first quarter of 2023 is up to 8.8 per cent in metropolitan areas such as Berlin. Demand for rental flats is picking up again across Germany in the first quarter.

The average asking prices for flats for sale across Germany will increase again slightly by up to two per cent in the first quarter of 2023. The asking prices for condominiums have also increased in five out of seven metropolitan areas. The strongest price growth was recorded in Hamburg and Stuttgart. Prices for single-family homes are falling slightly in Cologne, Düsseldorf, Berlin and Munich. Demand continued to rise in six out of seven metropolitan areas in the first quarter.

Interest in real estate is high despite high inflation, expensive interest rates, rising rents and prices. Those who want to buy or sell now are encountering a market that has changed considerably - compared to previous years. Nevertheless, according to a YouGov survey, one in six Germans is planning to buy their own house or flat. On average, however, only half as many interested parties respond to a property offer as a year ago.

(Photo: © Robert Allmann, Pixabay)