Purchase prices for condominiums are no longer rising as strongly as they did recently. This is according to an analysis by Jones Lang LaSalle (JLL). Purchase prices in Germany's eight largest cities rose by only 7.5 percent compared to the same period last year, which is only half as much as in the previous year. However, there are differences between the cities: while buyers of condominiums in Berlin had to spend 9.9 percent more than in the same period last year, Hamburg residents only paid 4.8 percent more than in the same period last year.
While buyers of condominiums in Munich have to spend 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 (EUR 7,270 per square meter) and Hamburg are the most expensive cities in Germany in terms of purchase prices for condominiums. However, according to JLL, the price upswing has not only slowed in the metropolitan areas, but also in the independent cities. Buyers only paid 6 percent more than in the same period last year. Previously, this figure had been 14.4 percent.
"In particular, the significant rise in financing interest rates since the fourth quarter of 2021 is the reason for the reluctance of home buyers and the associated slowdown in purchase price increases," says Sebastian Grimm, Lead Director Residential Valuation & Transaction Advisory JLL Frankfurt. According to JLL, in addition to purchase prices, rent increases in many locations have also been weaker than in previous years. Interested parties who would like to find out 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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