Residential rent price increases in large cities are slowing for the first time
Quoted rent prices in the seven largest German cities increased by 4.2 % during Q4 of last year, according to the current Empirica-Index. That is less of an increase than the year before (5.9 %). That means that the increase rate of rent prices declined for the first time since 2014, which Empirica considers to be “a partial success of increasing new construction on the supply side”. However, more and more young families, low-wage earners and students are moving away to the surrounding areas or emerging cities like Magdeburg or Heilbronn. In the individual large cities, increase rates ranged from 1.3 % in Hamburg to 6.4 % in Berlin. Purchase prices for apartments, meanwhile, are still on the rise. They increased in the Top 7 by 11.4 %, which is more than the previous year (9.5 %). Across the nation as well, purchase prices are rising more significantly than rent prices.
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