How is the property market faring in the wake of the coronavirus crisis?
The impact of the coronavirus crisis on the property market is the subject of intense debate. Whilst some experts
Whilst price corrections are expected, the latest figures show that demand for residential property in Germany
has continued unabated. Prices continued to rise in the third quarter of 2020 as well, albeit at a slightly slower pace than before.
Condominiums and detached houses in particular saw significant price rises in 2020. For example, the
Housing index up by almost 6 per cent As for detached houses, the growth was
even when 9 per cent. Experts believe that the desire for more living space and gardens
triggered an additional surge in demand during the lockdowns.
Slight price rises in the third quarter
- Existing owner-occupied flats: +2.4 per cent compared with the second quarter
- New-build flats: There were declines in some regions, e.g. Munich at -1.5 per cent
- Existing detached houses: Declines in cities such as Berlin (-0.9 per cent) and Munich (-3.8 per cent)
Despite regional fluctuations, prices have remained stable overall. Declines in certain
Major cities could be seen as a counterbalance to previous sharp price rises.
Property market remains robust
So far, the German property market has shown impressive resilience in the face of the crisis. Low interest rates
and sustained high demand continues to ensure favourable conditions. However, experts warn that should the
If the economic situation is weighed down by rising unemployment and falling incomes, this could
may have an impact with a time lag. So far, however, there is no evidence of any major slumps.
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