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Prices for residential and commercial buildings: Hannover is about to have a comeback
Discover the current trends in the German real estate market! The average offer price for residential and commercial buildings is continuously increasing. In this article you will learn everything about price trends, purchase price factors and the expected development of the transaction volume in the top 7 cities. Inform now and benefit from stable returns!
Prices for residential and commercial buildings: Hannover is about to have a comeback
The real estate markets in Germany are on the rise again! A phenomenal increase in prices for residential and commercial buildings brings new life to the industry. According to current analyzes by Engel & Völkers Research, the average offer price is now an impressive value of 1,932 euros per square meter - an increase compared to 1,920 euros per square meter in April. This positive tendency is particularly evident in the country's top 7 cities.
The numbers speak a clear language. In Munich, the square meters currently cost 7,508 euros, which means an increase of 1.76 %. Frankfurt/Main can also shine with 4,440 euros/m² (+3.11 %) and Hamburg with 4,285 euros/m² (+4.67 %). Stuttgart even recorded an astonishing increase of 5.48 % to 4,176 euros/m²! But Berlin has it more difficult - there was a slight decline from 0.06 % to 3,552 euros/m².
purchase price factors remain stable
The offer rents in German metropolises continue to rise - compared to the first half of 2023, an increase of almost 7 % was recorded. This could mean that the purchase price factors that indicate how many years an investment amortized will remain stable. In Düsseldorf it is between 17.5 and 22.3, while it varies between 20.0 and 28.0 in Berlin.
The forecasts for 2024 show a strong comeback from the investment market. Engel & Völkers Research predicts between 2,250 and 2,600 transactions for the overall year - this is an increase of up to 22 % compared to 2023!
Return of institutional investors
to evaluate positively is the return of institutional investors! After months of restraint, large transactions are now made again, driven by sunken building interest rates that make financing easier. "The market situation is promising," explains Till-Fabian Zalewski, CEO von Engel & Völkers for the D-A CH region. "In 2024 we will not experience any price reductions, and prices could even rise slightly."
Jawed Barna, Group CEO, also warns: "The demand for living space will continue to grow, which will increase rents further." For owners, this means very good rentability and secure rental income. With attractive returns of around 4.7 % in a medium location, the real estate market is still a lucrative investment.
So if you invest in residential and commercial buildings in 2024, you can benefit from these high returns- the future of the real estate market looks promising! Investors should now secure the best pieces!
The data comes from the analyzes of Engel & Völkers Commercial and impressively show how dynamic the real estate market in Germany is currently.