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Housing market in Germany - statistics & facts

The German residential real estate sector is one of a kind: Due to the fact that Germany is the most populous country in Europe and roughly half of its population rents, it also has the largest multifamily market in Europe. Not only have investments increased during the coronavirus (COVID-19) pandemic, reaching 25 billion euros in the twelve months between June 2020 and June 2021, but the housing market has seen an unprecedented boom.

Development of house prices

House prices are arguably the most important indicator in understanding the development of the residential market. In recent years, house prices have grown steadily and according to Eurostat’s house price index, increased by over 50 percent since 2015. Just in the past year, in the period between the third quarter of 2020 and 2021, house prices surged by over 13 percent or nine percent when accounting for inflation. In the second half of 2021 and the first half of 2022, the prices for residential dwellings, newly built and existing houses and apartments, are forecasted to continue increasing, but at a slower pace. Among Germany’s top markets, Munich is notoriously known for being the most expensive housing market. While concerns of a housing bubble in "the secret capital" are often discussed, the real capital of Berlin is the true battleground for more affordable housing.

Rental market

Compared to other cities in Germany and Europe, Berlin is a fairly inexpensive city for renting an apartment, making it a popular destination for young professionals and students. Rising rents and waning affordability, however, have been causing a commotion among renters. In 2020, a rent freeze was briefly introduced before being deemed unconstitutional and in 2021, the results of a non-legally binding referendum showed that over 50 percent of Berliners would support the resocializing of housing held by companies owning 3,000 or more apartments.

Interesting statistics

In the following 5 chapters, you will quickly find the 30 most important statistics relating to "Housing market in Germany".


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