The real estate market in Germany is experiencing unprecedented demand for residential properties, according to the latest WohnBarometer from ImmoScout24 for the fourth quarter of 2024. The trends paint a clear picture: both prices and interest are reaching new heights.
Rising Demand: An Overview of the Trends
Demand for residential properties has reached new record levels:
- Condominiums: Nationwide demand increased by 31% compared to the previous year.
- Single-family homes: A rise of 8% quarter-on-quarter and 24% year-on-year.
- Cities and Metropolises: Demand in cities is 14% higher than the previous peak in 2020, while metropolises show a 21% increase compared to the peak in 2021.
- Suburban and rural areas: The suburban regions around metropolises saw an increase of 27%, and rural areas grew by 20%.
Price Trends: Existing and New-build Apartments
Existing Apartments
Prices for existing apartments remained largely stable in Q4 2024, with a slight nationwide decrease of -0.7%. However, some metropolises saw moderate increases:
- Hamburg: +1.8%
- Stuttgart: +1.1%
- Leipzig: +1.1%
Year-on-year, there is a clear upward trend:
- Stuttgart: +4.2%
- Hamburg: +3.3%
- Cologne: +3.2%
- Berlin: +2.1%
- Leipzig: +1.7%
New-build Apartments
Prices for new-build apartments remained almost unchanged nationwide (-0.2%), with regional differences:
- Cologne: +1.9%
- Hamburg: +1.8%
- Stuttgart: +1.5%
- Leipzig: +0.5%
The most expensive metropolis remains Munich, with a square meter price of €11,200, followed by Berlin (€6,575) and Frankfurt am Main (€6,564).
Rental Market: Dynamics and Regional Differences
Existing Apartments
Rental prices for new leases increased nationwide by 0.3% quarter-on-quarter to an average of €8.57/m². Year-on-year, this represents a growth of 1.8%.
New-build Apartments
New-build rents show strong growth:
- Quarter-on-quarter: +2.1%
- Year-on-year: +7.8%
Leipzig stands out with a 12.7% increase year-on-year, yet remains the most affordable metropolis at €13.09/m². Cities like Düsseldorf (+2.2%) and Cologne (+2.0%) show particularly strong increases in rental prices for new leases.
Conclusion: Stability and Growth in the Real Estate Market
The ImmoScout24 WohnBarometer highlights a continued strong demand for properties, accompanied by moderate price increases in many regions. Particularly in metropolises and their suburbs, the market remains dynamic, while rural areas offer affordable alternatives. With stable trends and growing interest, the German real estate market remains attractive for both investors and buyers.
