According to this year's edition of the Postbank Housing Atlas 2021, prices for residential property are also expected to rise in the coming years. For the analyses of the Postbank Housing Atlas, experts from the Hamburg Institute of International Economics (HWWI) examined the real estate markets in 401 districts and independent cities in Germany. In one part of the Housing Atlas, the HWWI experts compare the price development in the area of purchase properties with the development of rental prices.
In order to compare purchase and rental prices, the so-called multiplier plays an important role. This value indicates how many annual net rents must be paid to purchase a comparable condominium. According to the results of the study, the average multiplier, taking into account the regional real estate markets, was 25.7 on average across Germany in 2020. In the previous year, the multiplier was still 24.0. Furthermore, the analyses show that the development of real estate purchase prices is becoming increasingly dynamic compared with rental prices.
While the multiplier has increased by the value 1 since 2017 and thus by about one year's rent, it was already 1.7 in the comparison of the years 2019 to 2020. On this topic, interested parties can find a compilation of the regional price developments of purchase properties compared to the developments of rental prices in the Postbank Housing Atlas. Depending on the region, different ratios can be observed. While the lowest multiplier with only 12 annual net rents in Saxony-Anhalt is in the Mansfeld-Südharz district, it is 75 in the Nordfriesland district on the North Sea, which includes the islands of Sylt, Föhr and Amrum.
Source: Postbank
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