A new study has found that property prices in most German cities saw a significant uptick in the first half of 2024.
The study, by real estate portal immowelt, examined the average asking prices for existing apartments in 77 major cities across Germany.
Cologne sees the biggest increase
It found that apartment prices have risen considerably in 39 cities, with Cologne experiencing the highest increase, with prices rising by 7.9% since January 2024.
The average price per square metre for an existing apartment in Cologne now stands at €4,729, up from €4,383 earlier in the year.
Munich saw a rise of 4.9%, with average prices increasing from €7,772 to €8,153 per square metre. Similarly, Frankfurt also reported a 4.9% increase, with current prices at €5,199 per square metre. Hamburg saw a more modest increase of 2.7%, bringing the average price to €5,904 per square metre.
Beyond these expensive hotspots, noticeable price hikes have also been observed in less costly cities. Hanover saw a 7.2% increase, with average prices climbing to €3,266 per square metre. Other cities such as Bremen and Leipzig also experienced price increases of 4.2% and 3.7%, respectively. In Koblenz, prices rose by 4.5%, while in Darmstadt and Rostock, prices increased by 3.6% and 3.3%, respectively.
Decline in property prices
Despite the overall upward trend, some cities have seen a decline in property prices. Berlin, which has struggled with falling prices since the interest rate hikes two and a half years ago, reported a decrease of 0.9% in the first half of 2024. The average price per square meter in Berlin now stands at €4,879.
Overall, 37 of the 77 cities surveyed experienced housing price declines, with Göttingen seeing the most significant drop at -5.3%. Saarbrücken followed with a decrease of -3.7%, while Wolfsburg and Chemnitz recorded declines of -2.9%. Eastern German cities such as Jena and Potsdam also experienced notable decreases, as did several cities in the Ruhr area.
“The market for purchasing property has picked up noticeably in the last six months,” commented Piet Derriks, CEO of immowelt. “The significant price drops following the interest rate shock two and a half years ago have made buying property more affordable again.
“With current construction interest rates lower than last year, interest in property buying is gradually returning, leading to rising prices in almost every second major city.”
