Under the title "The pig cycle is running out of food" Empirica Regio has released the real estate price index 2/2022. This shows that rents for condominiums have increased by 2.0 percent compared to the last quarter. Thus, for the first time in a long time, rents for condominiums have increased more than the purchase prices for them (1.1 percent compared to the last quarter).
The real estate price index also shows that rents for new builds have increased by 42 percent across Germany in the past ten years, by 41 percent in the independent cities and by 44 percent in the districts. According to Empirica Regio, the three most expensive cities in the rental price ranking (new-build apartments) are Munich, Frankfurt and Berlin. The purchase price ranking for new apartments is led by Munich, Frankfurt and Stuttgart.
In connection with the real estate price index, Empirica Regio points out that the real estate market is cyclical and that the real estate industry today faces challenges such as too little building land, tighter building laws and rising interest rates. The real estate price index is available free of charge at empirica-institut.de. A short article on the topic is also available from Empirica-Regio Managing Director Dr. Reiner Braun at linkedin.com/pulse/dem-schweinezyklus-gehts-futter-aus-reiner-braun/.
Sources: empirica-regio.de/empirica-institut.de/linkedin.com/pulse/the-pig-cycle-goes-food-out-of-pure-brown/
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