Purchase prices for condominiums are no longer rising as strongly as they have recently. This is the result of an analysis by Jones Lang LaSalle (JLL). Purchase prices in Germany's eight largest cities, for example, rose by only 7.5 percent year-on-year, which is only half as much as in the previous year. However, there are differences in terms of the cities: While buyers of condominiums in Berlin had to spend 9.9 percent more than in the same period last year, Hamburgers paid only 4.8 percent more than in the same period last year.
While buyers of condominiums in Munich have to pay a median of 10,000 euros per square meter, the figure is 5,780 euros per square meter in Berlin and 6,550 euros per square meter in Hamburg. After Munich, Frankfurt am Main (7,270 euros per square meter) and Hamburg are the most expensive cities in Germany in terms of purchase prices for condominiums. According to JLL, however, the price upswing has not only weakened in the metropolises, but also in the independent cities. Thus, buyers paid only 6 percent more compared to the same period last year. Previously, the figure had been 14.4 percent.
"In particular, the significant increase in financing interest rates since the fourth quarter of 2021 is the cause of the reluctance of home buyers and the associated weakening of purchase price increases," said Sebastian Grimm, Lead Director Residential Valuation & Transaction Advisory JLL Frankfurt. According to JLL, in addition to purchase prices, rental price increases in many locations have also been weaker than in previous years. Interested parties who would like to learn more about the development of asking rents or view the analysis can do so at jll.de.
Source and further information: jll.de
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