The purchase prices for condominiums have increased again in the past year.
Meanwhile, rents stagnated at a high level.
These are two results of the housing market report that the Frankfurt Chamber of Industry and Commerce presents once a year.
Chamber President Ulrich Caspar sees a reason for this development in the changed living conditions: Restrictions on vacation trips and leisure activities as well as home office have increased the demand for real estate in the IHK district of Frankfurt, Main-Taunus and Hochtaunuskreis and led to price increases across all sub-markets.
Rainer Schulz
Editor in the Rhein-Main-Zeitung.
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However, the high prices are no longer affordable for more and more people.
"Even for middle-class households, it is difficult to purchase real estate in Frankfurt and the preferred, well-connected cities in the Vordertaunus, despite the persistently low interest rate level," says Caspar.
The price range is enormous: Simply furnished apartments are still being sold for 2,000 euros per square meter in the northern parts of Frankfurt.
In the best locations in the Westend, on the other hand, a square meter is worth 11,500 euros.
Increased housing supply as a possible relief
In the Hochtaunus and Main-Taunus districts, too, price increases were registered in towns and communities with good transport links. According to the IHK, the demand for this has also increased because many companies have expanded their home office rules. Larger apartments with a study and a view of the countryside are in demand. Around 4,000 euros per square meter are paid in the front Taunus towns. Newly built apartments in good locations there cost more than 6,000 euros per square meter.
The information is based on a survey of real estate experts and the expert committees in the IHK district. Accordingly, houses have also become more expensive. Terraced houses and smaller semi-detached houses are still the cheapest in Fechenheim, Griesheim and Nied, where around 325,000 euros are paid for an existing property. In Sachsenhausen and in the Nordend, the prices for terraced houses and semi-detached houses from older years are already more than one million euros. Detached houses fetch even higher prices when resold: In Frankfurt-Dornbusch, more than 1.6 million euros are due. In the neighboring cities, sales prices start at 440,000 euros. In Bad Homburg, Bad Soden, Hofheim, Kronberg or Oberursel, millions are paid for high-quality houses.
Compared to the purchase prices, the rents in the IHK district are mostly stagnating at a high level. "There is currently a relative price gap between purchase prices for residential real estate and rents," says the report. In the popular locations and in the new building segment, rents have risen moderately. In the Frankfurt districts of Fechenheim and Schwanheim, rents range between 10 and 11 euros per square meter. The closer you get to the city center, the more expensive it becomes: in Bockenheim, apartments are rented for 13.50 euros per square meter, in Sachsenhausen for 14.50 euros. If you are looking for a cheap apartment, you have to travel a long way: In communities in the Hintertaunus, the average rent is still around 7.50 euros. With increasing proximity to Frankfurt they increase: in Bad Homburg, Bad Soden,Hofheim and Kronberg already have to pay twelve euros per square meter when signing a new lease.
The IHK does not expect the situation on the housing market to ease anytime soon: "The expansion of the housing supply is and will remain the decisive factor for a trend reversal," says Caspar, calling for more building land, shorter approval processes and more conversions of apartment buildings into condominiums.