The German housing market has been rock-solid for some time now. For example, it was one of the few markets that did not decline after the global financial crisis 10 years ago. Therefore property prices in Germany have been steadily increasing and continue to rise in 2020.
Average real estate prices in Germany
| Jan ’16 | Jan ’17 | Jan ’18 | Jan ’19 | Jan ’20 | |
| Apartments | 2120 | 2508 | 2648 | 2755 | 3114 |
| New Houses | 2323 | 2553 | 2687 | 2789 | 3056 |
| Existing Houses | 1860 | 1990 | 2083 | 2265 | 2596 |
Source: Europace
A great time to get a mortgage in Germany
Interest rates for mortgages in Germany have been extremely low for a few years, and continue to be low in 2020. For example, 1% interest is a very common figure these days. Because of this, demand for property has increased nationwide.
Demand for property in Germany outweighs the supply
Low construction activity has also contributed to the increased property prices in Germany. Due to this, housing supply is not keeping up with demand. This is because of a rising urban population and surge of migrants.
The trend is expected to continue
According to a report by Deutsche Bank, house prices are expected to continue increasing in the future: “Led by immigration and the continuous labour market uptrend, house prices and rents will likely continue to rise. Even at current levels, the willingness to take out loans ought to persist, due to low interest rates. The nationwide cycle looks set to continue until 2022 or beyond.”
Property prices in Berlin
Berlin is buzzing. The city has been growing rapidly for a number of years, due to its high quality of life, cool reputation, and strong job market, specifically in the tech industry. This has attracted many young people over the last 10 years. If you would like to know more about Berlin specifically, here’s an in-depth analysis of real estate prices in Berlin, by international property portal, Govesta. When looking at property prices in Germany, Berlin is still relatively cheap compared to other big cities.