The German property market
House prices and statistics
The statistics of Private owners is those make up about 40% of the market and are around 6% each social housing and cooperative rentals.During the financial crisis of 2008 Germany kept its economic stable and is currently the strongest economy in the Euro-zone. The real estate market survived the economic crisis. They showed some of the best results in terms of price stability globally. In Germany the recent increase in property sales has forced house prices up.
House prices in major German cities
In Germany the prices and the demand for property are very different, that depends on the region. Munich is known as Germany’s most expensive city and consequently house prices there are higher than other cities. The normal prices for 2011 illustrate these differences:
- Munich: €3,920 per square meter (sqm)
- Hamburg: €2,840 euros per sqm
- Düsseldorf: €2,600 per sqm
- Frankfurt: €2,900 per sqm
Reflecting lower incomes and a decreasing population housing prices in East Germany are lower than in West Germany. Even in some bigger cities population and prices are expected to increase in the future. In 2011 prices were the following:
- Berlin: €2,400 per sqm
- Dresden: €1,850 per sqm
- Leipzig: €1,600 per sqm
The purchase price in small cities per square meter can be as low as €700.
Buying property in Germany
In Germany the procedure of buying a house is easier than in most European countries. Looking for a house through a real estate agency is not always necessary. Since only authorized individuals (notaries) can carry out a property purchase hiring a notary is required.Germany in general has no limit on foreign ownership. You only need a valid passport and enough money to buy property. Munich, Berlin, Frankfurt and Hamburg are the top relocation destinations in Germany for both locals and foreigners.
