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The German Property Market

Plunging mortgage rates and foreign investment from the inflow of international people serve to liven up Germany’s previously flat property market. 

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Areas in Germany

Berlin Munich

Over the past five years, house prices in Germany have increased despite the German penchant for renting. Apartment prices in particular have been rising in major German cities such as Berlin (average 12% per annum in the last 5 years) and Frankfurt as young people strongly gravitate to urban areas, increasing the demand exponentially and making Berlin in particular Europe’s leading city for property investment. On-going price increases are also expected as Germany proves more and more popular and supply chases the demand for housing. On the whole, property prices are lower than those of other major European cities and with interest rates comparably low, a shift towards home ownership in Germany looks to be on the horizon.

For more information, take a look at our Inside View Germany.