Residential real estate prices in major German cities almost double since 2012
Purchase prices per square meter for residential real estate in major German cities have almost doubled since 2012.
Even the Corona pandemic has not put a damper on the real estate market – quite the contrary. While assets such as shares have in many cases lost considerable value, prices for residential property have continued to rise - both in the city and in the countryside. A new infographic from Kryptoszene.de reveals that this upward trend is not limited to Germany.
The average (median) purchase price per square meter for apartments in major German cities was EUR2,921 in the second quarter, compared to just EUR1,500 back in 2012. Munich remains the most expensive city in Germany, with real estate prices in the Bavarian capital rising by 6.1 per cent since the third quarter of 2019.
Meanwhile, the infographic indicates strong growth for real estate in rural areas as well. Price increases have been strongest in more densely populated rural areas, where homes were 8.9% more expensive in the second quarter in comparison to the same quarter last year.
Google analysis also highlights the growing interest in real estate. The Google trend score for the search term pair "Buy home" hit the maximum possible value of one hundred in this year of crisis. At no point over the last five years have more people searched for the above terms.
In the USA too, real estate is also in greater demand than ever. In Washington and the surrounding area alone, the real estate industry had a turnover of USD5.3 billion US in July, up 26 per cent on the previous year. A total of 36 per cent more single-family homes were sold nationwide in the USA.
"It seems as though the pandemic has fuelled the real estate market even further," says Kryptoszene analyst Raphael Lulay. "Persistently low interest rates are doing the rest. Much like the precious metal, concrete gold is living up to its reputation as a crisis asset".