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Residential News 4/2014

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Ongoing high value growth for condominiums in the first half of 2014 - increasing differentiation with rental price dynamic

The housing market in the eight German metropolises recorded moderate rental price increases in the first half of 2014. While asking rents in Cologne and Munich are stable and those in Hamburg are even decreasing, Berlin, Leipzig and Düsseldorf recorded annual rental growth of up to 8% in the first half of 2014. This illustrates an increasingly differentiated movement of rental rates among the analysed cities – after a period of substantial growth in recent years.

This contrasts with the development of condominium sale prices, which continue to rise. The markets in Berlin, Cologne and Hamburg have even gained significant momentum. Asking prices in Stuttgart increase by more than 18% year-on-year.

In the first half of 2014, the transaction volume was marginally higher than in the same period in 2013. Berlin remains by far the most important regional investment market in Germany. Please refer to our newly published Residential City Profiles for more information.

Frankfurt

Residential rental/purchase prices 10% 25% Median* (50 %) Development since H1 2013 75% 90%
Rental price (in €/sqm/month) 8.65 10.00 12.05 1.0% 14.50 17.65
Purchase price
for condominiums
(in €/sqm)
1,890 2,620 3,540 11.7% 4,580 5,980
*Median rent: 50 per cent of the listings are above 50 per cent below this figure.
Building activity 2013 Development 2013 vs. 2012
Building permits 4,680 37%
Building completions 2,930 49%
New housing demand 2,990 k.A.
Transaction market 2013 H1 2014
Frankfurt (in € million) 523 90
Germany (in € million) 15,800 6,900
  • 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