The recent economic crisis, which in 2009 threatened to jeopardize even Germany’s economy, can finally be considered water under the bridge. The quality of life in Germany today has reached extraordinary levels, so that more and more people pack up and head to Berlin, Dusseldorf, Munich or Frankfurt. Among the consequences of this is the full recovery of the housing market, which in the years of recession had suffered an abrupt halt. It is now in excellent health and flourishing- although in some areas more than others. Things are particularly bright in the property market in Munich, a city that is now crowded not just with tourists but an influx of people who have decided to make a new life in the attractive city. Life is sweet in the land of Octoberfest: taxes are minimal, people frequently chose a bicycle over a car since the streets are so accommodating to pedestrians and cyclists.
Housing prices in Munich are higher than in the rest of Germany. The cost per square meter for an apartment in the center of the city is an estimated four thousand euros, up more than 10% from 2013. Increases were also seen in detached homes and villas, which are highly sought after and currently cost 2,167 euro per square meter (up 5.7% in the last year). This is a significant but not shocking increase, given that Munich stands to replace Berlin as the iconic symbol of Germany.
This upward trend is reflected in Berlin as well, although not as pronounced as in Munich. Real estate costs less in Berlin and there is less movement. The average cost for a condo is approximately 2,500 euro per square meter, up 7% in respect to 2013. A villa however costs around 1,800 euro per square meter, more or less unchanged in respect to last year, reflecting the fact that there has not been much growth when compared to Munich, but remaining at pace with cities such as Dusseldorf, Dresden and Cologne.
Hamburg, on the other hand, seems poised to become one of the most expensive cities in Germany. Prices for central and suburban properties roughly mimic those of Munich. At the other end of the price spectrum is Dortmund, which offers the lowest housing prices. An apartment in the Ruhr costs just over 1,200 euro per square meter, quite competitive and affordable when compared to a similar home in Berlin or Munich.