Essen Germany Real Estate
According to the latest data from the Federal Office for Housing and Urban Development (BGL), the affordability index for housing in Germany has reached its highest level since the mid-1990s.
Average prices for houses and apartments in Germany have risen, and in some conurbations there have been very significant increases since 2011. However, these increases were mainly driven by high-priced regions such as the former East Germany, which is generally more expensive in terms of property prices than the rest of the country. The average cost of a home in East Germany in 2011 was $1,895, compared with $2,943 in Berlin, $3,073 in Hamburg and $4,058 in Cologne.
M apartments can be rented out for 1,700 euros a month, which, according to the Bundesbank, yields 3.7 percent. In the German real estate market, the interest rate profile has provided considerable stability, as it does not tend to lead to a sudden fall in the value of the houses. This explains why there have been no significant rate hikes in recent years and why demand for the choice of location remains high.
One of the main reasons for buying a house is to protect against rising rents, and for now it seems that Germany remains a stable investment opportunity. Rents in Germany are rising slowly and banks "interest rates are low, but that has not stopped the flow of capital into the real estate market, which has not stopped the price rise. In addition to the scarce housing supply, one problem is that refugees tend to settle in Berlin, where housing supply is even tighter. Property prices and rents were high, both for purchases and investments.
It should also be noted that properties in Germany are at best very well built, high-quality materials are used and strict building regulations are observed.
German rental costs are rising due to the steadily increasing demand for housing and the rising cost of living. In the first three quarters of 2016, the cost of new properties in Germany rose by around 6%. The German real estate market, which makes life in Essen ever more attractive and thus creates the chance to profit from the high quality of the housing market in the largest city in the country and one of the most attractive cities in Germany.
In Hanover, prices for apartments rose by 11.88% to a median price of 2,750 euros for an apartment. In Hamburg, the median price for an apartment rose to €1,739, which is an increase of around 3.5 percent compared to the previous year and the highest value in the country.
Düsseldorf recorded the highest price increase for apartments in the region with an increase of 12.83 percent, while in Cologne the median prices for apartments rose to 1739 euros, around 3.5 percent more than in the previous year.
The Bavarian capital Munich at the other end of the scale is by far the most expensive, but Essen is worth mentioning because it is Germany's financial centre and rightly ranks fifth. It ranks at the top of the overall standings ( The city is known for its high quality of life and high quality hotels, and as one of the most attractive real estate cities in Europe.
Construction activity in Munich has shifted to the edge of less densely built-up districts. However, most construction activity is concentrated in the upper price range, with the exception of some high-quality residential projects in the city centre and outskirts.
Others argue that the supply of rental housing is high, and that Germany's decentralized approach to housing leads to a more affordable housing market. Note that homes in Germany and other European countries tend to be smaller than those built in North America. Houses and apartments are expensive in many major cities, especially in the conurbations around the city. The typical cost of owning a home in Germany has risen significantly in recent years, especially in cities such as Munich, Frankfurt, and Berlin.
As the economist Jim Kemeny writes of Germany, "In Germany, the role of public policy is to pursue a third way, which involves a delicate balance between uncontrolled market rip-off and market strangling through hard intervention." Some economists believe that German housing policy strikes the right balance between government intervention and private investment in the housing market. If Germans have a need for housing and a lack of affordable housing, then some sort of government program is the only way to build it.
In an essay on the low home ownership rate in Germany, Voightlander writes: "Landlords and homeowners throughout Germany are hardly subsidised. Property prices in Germany have risen very slowly by historical standards, and this is because German banks want to borrow for the long term and also to lend for the long term. This means that rents in Germany are rising, but not very fast; their rental yields are low and moderate, while investment housing, including buy-to-let, is heavily subsidized by tax breaks. Recent rising house prices in the US and other countries are a very different story.