The desire to own one's own home is deeply rooted in Germany. However, only 45 per cent of the population are property owners. If the residents of Germany had a free choice, three quarters of them would like to live in their own four walls.
According to the study "Living in Germany 2025" conducted by the IW Institute on behalf of the Sparda Banks Association, there is thus a potential of 20.6 million residents who dream of owning their own house or flat but currently live in rented accommodation. The population also believes that politicians have a responsibility to act: 69 per cent of those surveyed believe that speeding up approval processes has potential. For 54 per cent, the abolition of land transfer tax would be a welcome measure. In principle, 67 per cent of tenants with plans to buy would also purchase residential property in need of renovation.
Since 2012, price increases have been recorded in all regions of Germany – the stronger a region has grown, the higher the price increases. Younger people are generally drawn to cities and metropolitan areas, leading to significant migration gains among 18- to 30-year-olds. Families, on the other hand, are increasingly moving to the more affordable surrounding areas and commuting to their workplaces. In total, almost 2.6 million people commute to the seven metropolitan areas every day.
This has a significant impact on property prices, which in turn has consequences for the economy. In four of the seven metropolitan areas, property prices in the surrounding areas have risen more sharply on average than in the metropolitan areas themselves over the last five years. It would be worthwhile to support people in realising their dream. After all, 98 per cent of property owners are satisfied or even very satisfied with their living situation.
The analysis of the residential property market, "Living in Germany 2025", focuses on metropolitan areas and their surrounding regions and contains statements on the affordability of the individual regions. The study is supplemented by the results of a representative population survey on the housing preferences of Germans. The associated online tool is available at www.sparda-wohnen2025.de.
Graphic: © pasja1000, Pixabay
