Real estate prices up 9.59% for the year to Q1 2021
Real estate prices in Germany continue to rise as the economy recovers from the worst recession in history caused by the coronavirus pandemic. The average price of apartments rose 9.59% in the year to Q1 2021. On a quarterly basis, home prices rose 2.09% in Q1 2021.
Germany’s real estate market has been steadily growing for the past six years, with home prices up nearly 67% from Q1 2014.
High demand, growing construction activity
Demand remains strong, aided by low interest rates, urbanization and good household finances. In recent years, the migration crisis and strong economic growth have boosted already strong demand in the country.
Moreover, despite the pandemic, housing construction activity continues to grow. According to the Federal Statistical Office, in Q1 2021, the number of housing permits rose nearly 20 percent from a year earlier to 95,916 units, after a year-on-year increase of 2.2 percent in 2020.