Owners currently have to pay around 71 times their monthly net household income to buy an apartment of around 100 square meters. Ten years earlier, it was 50 times as much. This is the result of a study by Hüttig & Rompf AG. According to the construction finance broker, the average price per square meter in Germany reached a new record high of EUR 3,958 in 2021. In 2012, only 2,229 euros per square meter were due. This corresponds to a percentage increase of 78 percent.
The study also shows that the search for real estate has changed. Real estate is no longer only sought in major cities such as Frankfurt (Main), Hamburg or Stuttgart, but also in the suburbs and surrounding areas. Demand is for properties in A to D cities. A-cities include the three aforementioned metropolitan areas as well as Berlin, Düsseldorf, Cologne and Munich. D-cities include Passau, Siegen and Wolfsburg, for example.
"Despite the significant increase in prices per square meter, the monthly burden on households remained relatively constant from 2012 to 2021. This is due to the growing demand for smaller properties and the favorable interest rates," explains Ditmar Rompf, CEO of Hüttig & Rompf AG. Owner-occupiers had to spend around 23.9% of their net household income on monthly interest and repayment installments in 2021. This is only slightly more than in 2012 (21.6%).
Source and further information: dgap.de/www.huettig-rompf.de/online/marktreport-2022/
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