In Germany, it was cheaper to buy a home than to rent in 2021. This is according to the Accentro Housing Cost Report 2022. Compared to 2020, the cost advantage of owning a condominium over a comparable rental apartment has increased by around three percent, according to Accentro. In almost all (399/401) of the German districts and independent cities surveyed, owners had to pay less than tenants. While new tenants had to pay around 10.30 euros per square meter, owners of comparable apartments only had to pay 4.21 euros per square meter.
"According to our Accentro Housing Cost Report 2022, last year was a very good one for homebuyers. The cost benefits for owner-occupiers have continued to rise, albeit moderately, to almost 60 percent, which is huge. In view of high real estate prices and rising rents, home ownership is still the best form of private retirement provision," explains Lars Schriewer, CEO of Accentro Real Estate AG.
The Accentro Housing Cost Report was compiled in collaboration with the German Economic Institute (IW). It has now been published for the seventh time. For the comparison between owners and landlords, the IW takes into account various factors such as net cold rents and owner-occupier costs. Owner-occupier costs are made up of the purchase price, ancillary purchase costs, mortgage interest and lost interest (opportunity interest) on equity as well as maintenance costs. The reduction in value (depreciation) is also taken into account.
Source and further information: accentro.de
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