Real estate is becoming more and more expensive not only in German cities but also in the countryside. Between April and June 2019, the prices for condominiums and houses, even in sparsely populated rural areas on average by 4.2 percent more expensive. This has been calculated by the Federal Statistical Office. Overall, residential property prices in Germany rose by an average of 5.2 percent, in contrast to the same period of the previous year.
According to the authorities, prices rose particularly sharply in the seven largest cities in the republic. In Berlin, Hamburg, Munich, Cologne, Frankfurt am Main, Stuttgart and Dusseldorf, one- and two-family houses increased in price within a year by ten percent, for condominiums buyers had to pay 8.6 percent more. In the other cities with more than 100,000 inhabitants, the prices for condominiums rose by seven percent and house prices by 7.1 percent.
Historically low interest rates have been generating a booming demand for houses and apartments for quite some time. That drives the prices. In addition, more and more citizens are realizing their dream of owning their own home. Between 2007 and 2018 house prices rose according to the statistics office by about 50 percent.
From April to June, the development of the first quarter of 2019 continued. From January to March, housing prices had also risen on average by 5.2 percent, as the statisticians reported and thus their provisional data from June by 0.2 percentage points slightly revised upwards.