Residential rents and purchase prices rising more slowly
Apartment rents in the top 8 German markets rose by an average of 2.3 % during the first half of 2019, JLL reports. The rate of increase thus slowed markedly compared to the previous year’s period (+4.9 %) and the five-year average (+5 %). In Munich, Düsseldorf, and Leipzig quoted rents even dipped slightly on average, but Munich remained the priciest location with €19.45/sqm. The largest increase of +4.7 % to €11.65/sqm was recorded in Berlin; rents also rose in Frankfurt (+3.4 %), Cologne (+3 %) and Hamburg (+2.4 %). Purchase prices for condominiums also climbed more slowly than they have been at an average of +6.7 % (five-year average +8.3 %). The peak of the rent and purchase price hike is likely behind us, says JLL, adding that as a result of the slowed price growth, willingness to pay high purchase prices has also declined.
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