Germany Condominiums and Apartments Market Size

Germany Condominiums & Apartments Market Analysis

The Germany Condominiums and Apartments Market is anticipated to register a CAGR of more than 7.8% over the forecast period. 

• The residential real estate market came to a halt due to the COVID-19 pandemic, as the government implemented lockdowns and citizens were forced to stay at home. Due to low borrowing rates, a lackluster supply of new homes being built, and increasing demand from more than 1 million refugees, Germany's long-running housing price boom is still strong despite the global epidemic. This is a huge change in a nation where the housing market has always been incredibly steady.
• In 2021, the upward trend in home and apartment prices persisted. According to bulwiengesa, the overall indexes for home and apartment prices in the 126 cities that we track increased by around 6 to 7% from 2020, which is roughly in line with the rate of the years before.
• All four groupings, specifically newly constructed and existing condominium units and terraced homes, followed the average very closely. In the same way, as in the years before, rents also continued to climb, albeit at a slower rate. Re-let and new unit rents increased by around 3% and 4%, respectively. As a result, the initial gross rental returns for both new and existing properties fell to 3.1% and 3.7%, respectively.
• In the year leading up to Q1 2021, the price of apartments increased by 11.46% (or 9.61% when adjusted for inflation), which is a minor decrease from the 13.61% growth seen in Q1 2020. Apartment prices increased by 4.02% every quarter (2.1% inflation-adjusted).
• Inflation-adjusted new home prices increased by 5.73% and 1.63%, respectively, year over year and quarter over quarter. Price increases for existing homes were 14.73% (12.83% inflation-adjusted) year over year and 4.07% (2.15 inflation-adjusted) quarter over quarter.
• The fourth quarter of 2021 saw an increase in apartment prices of 12% on average, which was the highest rate of price growth since records began in 2000. Since the pandemic started, prices have risen. It climbed by 8.25% through Q3 2021, after experiencing Y-o-Y increases of 8.38% in Q2 2021, 7.95% in Q1, 8.8% in Q4, and 7.38% in Q3 2020.
• Berlin, the capital of Germany, is the seventh-most populous city in the EU. The city's young population and expanding status as a European center for the arts and media have helped the residential sector of the economy. Numerous prestigious universities, orchestras, museums, amusement parks, and other creative businesses are located there.