By Gert Ewen Ungar
As reported by the Federal Statistical Office, home ownership prices rose significantly in the second quarter as well. The change compared to the same quarter of the previous year shows a price increase of 10.2 percent. It’s the fifth rise in a row above 10 percent. The increase of 2.5 percent compared to the previous quarter is also significant.
Despite a slowdown in inflation, home ownership has again become significantly more expensive year-on-year. There are large regional differences. The increase was most pronounced in sparsely populated rural areas, followed by large cities. In the seven German metropolises, the prices for single and two-family houses rose by more than 12.2 percent on average and by 10.6 percent for condominiums.
The development on the housing market is counteracted by an overall declining number of building permits. The number of newly approved residential buildings fell by more than two percent in August compared to the same period last year.
The goal of more than 400,000 new buildings per year set by Finance Minister Christian Lindner at the beginning of the year will be clearly missed this year. The figure of 400,000 new apartments per year is already low. As the German Tenants’ Association determined last year, there is a shortage of 1.5 million apartments in Germany. There is a lot of catching up to do in Germany, especially in the area of social housing and the provision of affordable housing.
more on the subject – BlackRock & Co: The largest owners of rental apartments in Germany