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Residential News 4/2015

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In the first half of 2015, slight slowdown in momentum on the market for rental apartments – higher average growth rates for condominium apartments

Our analysis of the residential property markets in eight major German cities reveals a slight slowdown in rental growth during the first six months of this year. With the exception of Hamburg (-0.5%) however, rents have increased further in the other cities over the course of the year so far, with a rise of 1% recorded in Berlin, 2% in Munich and up to 5% in Leipzig.

Purchase prices for condominium apartments have, on average, seen slightly higher growth rates in the cities investigated. By the mid-point of the year, the highest rise was observed in Stuttgart, with around 11%. Rises of over 4% were observed in Cologne, Düsseldorf and Berlin.

The investment market recorded a new record level in the first half of 2015, with €17.5 billion invested in residential property and portfolios. Berlin remained by far the most important regional transaction market in Germany.

Frankfurt

Residential rental/purchase prices 10% 25% Median* (50 %) Development since H1 2014 75% 90%
Rental price (in €/sqm/month) 9.00 10.55 12.75 5.6% 15.15 18.50
Purchase price
for condominiums
(in €/sqm)
2,190 2,930 3,990 12.6% 4,960 6,350
*Median rent: 50 per cent of the listings are above and 50 per cent below this figure.
Building activity 2014 Annual percentage change
Building permits 3,704 -30%
Building completions 2,972 1%
New housing demand 3,890 n/a
Transaction market H1 2015 2014
Frankfurt (in € million) 450 330
Germany (in € million) 17,500 12,900
  • Development of rental prices (median in €/sqm/month)

  • Rental price bands for condominiums

  • Development of purchase prices (median in €/sqm/month)

  • Purchase price bands for condominiums

  • Housing supply and demand for new buildings

Frankfurt H2/2013 Download full report