What effects does Corona have on property prices?

During the lockdown, many people spent much of their time at home. As a result, the importance of real estate has increased again, which is clearly shown by the prices on the house and apartment market. In many large cities, for example, the prices for houses rose by almost 50,000 euros, which unsettled many interested parties. We would therefore like to tell you where properties are still available and what you have to pay for them.

Sharp rise in property prices in Germany stopped for the time being

Even before the corona pandemic, the prices for apartments and houses were constantly rising in this country. But the price increase during the corona pandemic was already quite high in some places. The prices in the Munich area rose by an average of around 10%.

Prices rose even higher at 13% only in Nuremberg and the highest price increase in the real estate sector was 14% during the corona pandemic in Hamburg and Frankfurt am Main.

One reason for this price increase is, among other things, the demand for cozy, spacious properties, which is owed to the fact that many people spent an above-average amount of time in their own four walls during the lockdown.

Real estate prices are rising across Germany. Find out more then decide to find a new home

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Purchase request is just postponed

Experts assume that many young couples simply postponed their purchase wish during the corona pandemic and are now just waiting for the right moment to strike. Because previously the situation was difficult for many people to assess, which is why they were reluctant to make high investments.

But public life is slowly picking up speed due to an ever higher vaccination rate, and in some countries there are no longer any restrictions.

If you want to find out more about the price development in your own region, you can rate properties at miete-aktuell.de and in this way find out what your dream property is currently costing you.

Find out about the development of real estate prices before you decide to buy a new apartment.

Munich real estate market unaffected by Corona

It is true that the price increase in Germany seems to have stopped for the time being, at least with the exception of Munich, where real estate prices continue to rise.

On the other hand, the situation is different for rents, which continued to rise in the second quarter of 2021. Compared to the previous year, rents for houses and throughout Germany rose by around 3.2 percent, which is still less than in the previous year.

Where can a real estate purchase still be worthwhile?

The prices for houses and condominiums are not rising as strongly everywhere as in Munich, Hamburg, Frankfurt, Cologne or Berlin. Especially away from the big cities, in suburbs and in the country, you can still find real bargains. And since many employees have been working from home on a regular basis since the pandemic, the distance to the place of work no longer plays as important a role as it did before.

However, there are also some large cities in which buying property is still worthwhile, such as Leipzig, Dortmund or Essen. And the cheapest is to buy real estate in Bremen, where you pay around a quarter less than in Munich.

Rent or Buy? You decide!

Metropolises are almost bought empty

Above all, residential properties are in great demand on the property market and experts expect sales of 237.7 billion euros in this area this year. This would increase sales by another 7.5 compared to the previous year, while the number of transactions would only increase slightly by 1.4 percent.

A standstill was not observed at all during the corona pandemic, as the events on the market have shifted over time from the big cities to the surrounding regions. One and two-family houses are in particular demand there, as 259,300 purchases / sales in 2020 clearly show.

As a result, the price dynamics in the area of ​​owner-occupied properties have increased again, as clearly shown by an increase in home ownership of 10.8% and an increase of 7.2% in the area of ​​condominiums.

Buying a new property makes the whole family happy!