• Germany edition
 
Housing becomes more expensive nationwide
Photo: DPA

Housing becomes more expensive nationwide

Published: 17 Oct 2012 12:01 GMT+02:00
Updated: 17 Oct 2012 12:01 GMT+02:00

The German government has acknowledged the increase in housing prices across the country, saying it is due to significant bottlenecks in construction. A report released on Wednesday suggests prices are rising in both depressed and booming areas.

The Handelsblatt newspaper said the average nationwide rent increase over the past year was around three percent, but that in certain areas this was much higher. Greifswald, in Mecklenburg Western-Pomerania, saw the highest increase of 10.4 percent, followed by Bremen with 8.8 percent and Breisgau, Baden-Württemberg with an 8.1 percent increase.

Prices for people buying flats and houses also rose, particularly for newly built property. Especially in Berlin, Hamburg, Munich, Frankfurt and Düsseldorf, where the paper said prices increased by between seven and nine percent.

Construction Minister Peter Ramsauer, whose ministry compiled the report and presented it to cabinet on Wednesday, said in June he saw a trend emerging from the combination of growing demand and too little building over a number of years.

Figures from the Statistics Office show the net rent in 2011 having increased by just 1.2 percent over the previous year – well under the general inflation rate of 2.3 percent.

But the rate of increase in rent when new contracts are agreed is much higher – the offers advertised were 2.9 percent over the previous year. In western Germany they rose by 2.7 percent to an average of €6.72 a square metre, and in eastern regions they were up by 3.5 percent to reach €5.51 per square metre.

Rents have risen particularly in booming cities and many university towns, and the 20 towns with the strongest upward tendency all had increases of between 5 and 10 percent. Around half the population live in towns where rents have risen by at least two percent, the Handelsblatt said.

The Local/hc

The Local (news@thelocal.de)

Don't miss...X
Left Right

Your comments about this article

15:15 October 17, 2012 by Berlin fuer alles
Great picture. Just what the government would like us to live like. Cheap efficient labour for big businesses.
15:20 October 17, 2012 by BobbyBaxter
This is excellent news as I bought a house in Berlin last year. Hopefully prices will just keep rising making me even more profit should I wish to sell or rent it out......
15:40 October 17, 2012 by whiteriver
I couldn't understand the difference from the first and the fourth paragraph: 3% and 1.2% average increase on rent. are they from different sources? (Handelsblatt x Statistics Office?)
20:04 October 17, 2012 by smart2012
This is time on Germany to sell If u bought 10 years ago., and buy properties in markets where prices are down ie Greece and Spain. And then the cycle starts again :)
20:59 October 17, 2012 by zeddriver
Any person that gazes upon that building and even for a millisecond thinks "Man I'd love to live there" Should without delay seek the help of a mental health specialist.
08:33 October 18, 2012 by Berlin fuer alles
@smart2012

You are right but I fear the German government will tax the s#!7 out of any money I make upon selling. This increase in value is only on paper good.
14:51 October 18, 2012 by smart2012
berlin fur alles, u r correct :-)

The cycle i was meaning is not for normal people like me and u, it is for people with tons of money that drive speculation, prcing etc etc... me and u we shuold better keep what we have, whatever it is, as investing today in stock market is too risky anyway :-)
10:25 October 19, 2012 by bradmoss
Is the building in the picture a real one? If it were real, the picture would be awesome!
14:55 October 22, 2012 by MrNosey
This is good news indeed. My properties in Germany are gaining in value and I can put rents up. I've just managed to secure a nice villa in Greece too for an absolute bargain.
Today's headlines
Berlin's best street art - in pictures
Photo: J. Arthur White

Berlin's best street art - in pictures

The German capital boasts works by some of the world's most prominent street artists. The Local took a walk through the districts of Friedrichshain and Kreuzberg to bring you some of the highlights. READ () »

State checks more bank accounts than ever
Photo: DPA

State checks more bank accounts than ever

German authorities are inspecting bank accounts more often than ever, figures from the finance ministry showed on Friday. READ () »

Dortmund's Klopp rules out Man United job again
Jürgen Klopp. Photo: DPA

Dortmund's Klopp rules out Man United job again

Borussia Dortmund's charismatic coach Jürgen Klopp has reiterated he would not be joining Manchester United despite British media reports linking him to the vacant manager's job following David Moyes' dismissal. READ () »

Minister's jet grounded twice in a month
Foreign Minister Steinmeier reboards his plane after the delay. Photo: DPA

Minister's jet grounded twice in a month

German Foreign Minister Frank-Walter Steinmeier had to wait for two hours on a runway on Wednesday night due to a technical glitch on his plane - the second problem the jet has had in a month. READ () »

German of the Week
'It's important people are confronted with cancer'
Photo: Marina Proksch-Park

'It's important people are confronted with cancer'

Images of children with cancer often evoke weakness and defeat. But Marina Proksch-Park shows them enjoying life. The photographer who has sparked an online campaign with her pictures is The Local's German of the Week. READ () »

CDU candidate forced to remove Turkish logo
Yasar Calik. Photo: Facebook/Yasar Calik

CDU candidate forced to remove Turkish logo

A Christian Democrat (CDU) town council candidate has apologized and withdrawn campaign bags on which he had printed a new party logo where the Turkish crescent appeared inside the "C" for Christian. READ () »

Cheap flights get pricier as airlines expand
Lufthansa's daughter company Germanwings is one of the faster-growing budget airlines in Germany. Photo: DPA

Cheap flights get pricier as airlines expand

Budget airlines are expanding their range of routes from Germany but ticket prices are climbing along with them, a report from the German Aeronautics Centre (DLR) revealed on Thursday. READ () »

Ecclestone lawyers: Bribes never happened
Bernie Ecclestone with his lawyers in a Munich court on Thursday morning. Photo: DPA

Ecclestone lawyers: Bribes never happened

UPDATE: Formula One supremo Bernie Ecclestone went on trial in Germany on Thursday, denying charges of bribery that threaten to land the British billionaire in jail. READ () »

Minister praises Erasmus 'success story'
Photo: DPA

Minister praises Erasmus 'success story'

A revamped version of European student exchange programme Erasmus officially launched in Berlin on Thursday with Germany's education minister praising the scheme as a Europe-wide “success story”. READ () »

Turkey tourists lose call to prayer refund bid
Photo: DPA

Turkey tourists lose call to prayer refund bid

A German couple has lost their legal fight to get a refund for a Turkish holiday which they said was ruined by the calls to prayer from a nearby mosque. It is just one of a series of court claims by picky German tourists. READ () »

RECEIVE OUR NEWSLETTER AND ALERTS
Photo: DPA
National
Germany sold €40 million of arms to Russia
Photo: DPA
National
Girls find live ammunition in Easter bonfire
Photo: Facebook/screenshot
Berlin
Germany's most viral advert for an apartment?
Gallery
11 things you need to know about German beer
Photo: DPA
Politics
Interview with AfD - 'If Britain goes, Europe is lost'
Photo: DPA
National
Police damage own water cannon with eggs
Photo: DPA
National
Let us start work later after World Cup nights, unions says
Photo: DPA
Society
Crystal meth use hits record level
Photo: DPA
Rhineland
Elderly man taped €200,000 to his genitals
Photo: DPA
Business & Money
What's the unemployment rate in your area of Germany?
Photo: Galerie Bilderwelt
Gallery
World War I in colour photos
Photo: DPA
Society
JobTalk: Why you should teach English in Germany
Advertisement:
Photo: DPA
National
330,000 sign up against TV licence fee
Photo: Submitted
Frankfurt
'I'll get even with my old pal Schwarzenegger'
Photo: DPA
Gallery
Ten great inventions you (probably) didn't know were German
Photo: J. Arthur White
Berlin
Clashes in Berlin as refugees tear down their own camp
Photo: DPA
Gallery
The 10 best German employers to work for
CurrencyFair
Sponsored Article
Why it pays to avoid banks when making overseas transfers
Mr. Lodge
Sponsored Article
How to find a furnished rental in Munich
Sponsored Article
How to make a lasting impression in business
Photo: DPA
Society
Nine jobs you can only do in Germany
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
Photo: DPA
Features
The Local List Archive - Your guide to all things German
National
Share news tips with The Local Germany
Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

3,081
jobs available
Toytown Germany
Germany's English-speaking crowd