Purchase prices per square metre in major German cities have almost doubled since 2012. Even the Corona pandemic has not put a damper on the real estate market – on the contrary. While some assets such as shares corrected strongly downwards, prices for residential property continue to rise – both in cities and in the countryside. As a new infographic from Kryptoszene.de shows, this upward trend is not just restricted to Germany.
In the second quarter, the purchase price per square metre for a freehold flat in a major German city averaged (median) €2,921. In 2012 it was just €1,500. Munich is still the most expensive city in Germany. Property prices in the Bavarian capital have risen by 6.1% since the third quarter of 2019, according to data from “Empirica”.
In Munich, purchase prices per square metre have risen by 53.7% over the last 5 years. The increase in Potsdam has been even greater, rising by 93.5% in the same period.
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Real Estate In Vogue
Meanwhile, the infographic shows that real estate in rural areas has also recently risen sharply in value. In more densely populated rural areas, prices in the second quarter climbed 8.9% year-on-year.
Google analyses also reveal a growing interest in real estate investments. The Google trend score for the search term pair “Buy home” reached the highest possible value of 100 in this year of crisis. At not point in the last 5 years have more people searched for this phrase.
Real Estate Boom In The USA
In the United States of America, too, real estate is in higher demand than ever. In Washington and the surrounding area alone the real estate industry achieved a turnover of $5.3 billion US in July. This is 26% more than in the previous year, as reported by “Der Spiegel”. Nationwide, sales of single-family homes in the USA rose by 36%.
