Regional Differences in Future Real Estate Price Development
The price development of real estate in Germany until 2035 will be shaped by various factors, such as the real estate crisis, demographic changes, and regional differences. A comprehensive study on the development of purchase prices in 400 German districts and cities shows a differentiated picture depending on the region.
Metropolises: Low Growth
In the largest metropolises of Germany, for example, Hamburg, only minimal growth in real estate prices is expected. The square meter price for condominiums in Hamburg is expected to rise by only about 0.21% per year by 2035. This stagnation is due to the fact that prices in these metropolises are already at a very high level.
Large Cities with Potential
Cities like Dresden and Erfurt, on the other hand, show more dynamic trends. Dresden expects a growth of about 1.0% per year, while an increase of 0.9% is forecasted for Erfurt. These cities provide growth potential due to their increasing population and economy.
Regions with Stagnant Prices
Especially in some eastern and southeastern German regions, as well as occasionally in the southwest, low or even negative growth of real estate prices of -1 to -2.5% is expected by 2035.
Factors Influencing Price Development
- Demand and Supply: The increased demand for housing meets limited supply, which in the past caused an upward price effect and could promote it in the future as well.
- Demographic Changes: By 2035, Germany will see the highest increase in urban households in Europe, offering lucrative opportunities for property owners and investors.
- Interest Rate Development: In the short term, high mortgage rates could pressure purchase prices, whereas demand favors the long-term rise in prices.
Strategies for Investors and Savers
Private investors should focus on regionally differentiated developments. While high price growth is expected in Munich and Potsdam, other areas may be less lucrative. It is important to consider local market conditions as well as the overall economic situation in order to make informed investment decisions.