Berlin, October 1, 2018 – In 2017 , a total of 7,316 condominiums were sold in the Rhine-Main region—specifically in the cities of Frankfurt, Wiesbaden, Mainz, Darmstadt, and Offenbach. This represents a 7.65 percent decline compared to the previous year (7,922 units). However, sales volume remained largely stable, falling only slightly by 0.2 percent to 2.46 billion. “The largely stable sales volume in the residential property markets of the Rhine-Main region shows that there is excess demand, which is leading to further price increases,” explains Jacopo Mingazzini, CEO of ACCENTRO Real Estate AG. The findings are taken from the latest ACCENTRO Homeownership Report 2018, which analyzed data from the appraisal committees for the 82 largest German housing markets.
Significant Decline in the Number of Apartments Sold in Frankfurt
The number of condominiums sold in Frankfurt am Main fell significantly by 12.54 percent to 3,556 units (2016: 4,066). The sales volume declined to 1.4522 billion euros (2016: 1.5232 billion euros), a decrease of 4.66 percent. In Offenbach, sales fell by 9.65 percent to 627 units, and in Wiesbaden by as much as 11.19 percent to 1,230 units. Mainz and Darmstadt, on the other hand, are among the locations with the comparatively highest growth rates in the immediate vicinity of these major German cities. Both cities saw their sales figures rise by 6.64 percent to 1,317 units and by 8.12 percent to 586 units, respectively. “Cities in the surrounding area, such as Wiesbaden, Mainz, Darmstadt, and Offenbach, are benefiting from the price trends in Frankfurt,” explains Mingazzini.
Tight Supply Leads to a Price Increase of Just Under Ten Percent The already strong excess demand is further fueled by the decline in sales, driving apartment prices even higher. Between 2016 and 2017, the average apartment price in the Rhine-Main region rose from 268,000 euros to around 295,000. This corresponds to a price increase of nearly ten percent. The Rhine-Main region, with the cities of Frankfurt, Darmstadt, Wiesbaden, and Mainz, is now represented four times in the top 10 cities with the highest average apartment prices. With a price increase of 9.01 percent and an average price of 408,000 euros (2016: 374,619 euros), Frankfurt remains Germany’s second-most-expensive city, behind Munich (448,000 euros) and ahead of Hamburg (401,383 euros). “In Frankfurt in particular, the price trend is unlikely to change in the near future given the strong population growth,” said Mingazzini.
New Construction Slumps Despite Excess Demand
Sales figures for newly built condominiums in the major cities of the Rhine-Main region fell by 8.96 percent. A total of 2,844 newly built condominiums were sold in the five housing markets during the reporting year. Just under 60 percent of the transactions took place in Frankfurt am Main. Here, 1,704 newly built condominiums changed hands during the reporting year (a decline of 14.89 percent). By contrast, Darmstadt (up 39.47 percent) and Wiesbaden (up 7.73 percent) recorded the strongest percentage growth.
About the ACCENTRO Homeownership Report
This marks the eleventh time that ACCENTRO Real Estate AG has published the Homeownership Report. The analysis is based on homeownership transactions during the 2017 reporting year in all 82 major German cities. By drawing on data from appraisal committees, the report differs significantly from similar publications, which are usually based on expert estimates or the analysis of listing data.
Detailed results from the ACCENTRO Homeownership Report on the top 7 cities and trends over the past 10 years are also available online in the ACCENTRO database and can be filtered according to your specific criteria.
About ACCENTRO Real Estate AG
ACCENTRO Real Estate AG is a residential real estate investor and the market leader in residential privatization in Germany. As of December 31, 2020, its real estate portfolio comprised approximately 5,200 units. In addition to Berlin, its regional focus includes major East German cities and metropolitan areas, as well as the Rhine-Ruhr metropolitan region and Bavaria. ACCENTRO’s business activities encompass four core areas. These include the tenant-oriented sale of apartments to owner-occupiers and private investors, the sale of real estate portfolios to institutional investors, the development and management of its own real estate portfolio, and the marketing of apartments for property owners, investors, and project developers. The shares of ACCENTRO Real Estate AG are listed on the Prime Standard of the Frankfurt Stock Exchange (WKN: A0KFKB, ISIN: DE000A0KFKB3). investors.accentro.de
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