Berlin, October 4, 2018 – The number of apartments sold in Munich has declined slightly and, at 9,950 (2016: 11,057), is below the 10,000 mark. This represents a decline of about ten percent. However, the decline in transactions does not reflect the trend in sales revenue. In 2017, sales revenue totaled 4.454 billion euros (2016: 4.668 billion euros). This represents only a slight decline of 4.58 percent. This decline is primarily attributable to the drop in sales figures for new construction. The number of new construction units sold fell by about 27 percent to 3,000 (2016: 4,120). “Demand for home ownership remains very high in Bavaria and especially in Munich. However, the supply of new construction is insufficient to meet demand,” explains Jacopo Mingazzini, CEO of ACCENTRO Real Estate AG. This is evident from the latest ACCENTRO Homeownership Report 2018, which analyzed data from appraisal committees for the 81 largest German housing markets. These include eight housing markets in Bavaria.
Of the eight housing markets surveyed in Bavaria, Ingolstadt, Regensburg, Erlangen, Würzburg, and Augsburg also recorded a decline in transactions. In Regensburg, the decline was as high as 25.78 percent. Only in Fürth did the number of transactions increase significantly (up 12.21 percent), while Nuremberg also recorded a slight increase of 0.51 percent.
The situation is different, however, when it comes to price trends. All cities except Würzburg saw price growth per sale. Ingolstadt and Fürth even recorded double-digit price increases per sale of 12.47 percent and 11.60 percent, respectively. Augsburg, which saw a decline in the number of transactions and total sales volume, also achieved sales growth per sale of about nine percent. In Würzburg, a slight decline of minus 1.80 percent was observed. “The figures confirm the continued high level of interest in home ownership in all major Bavarian cities,” said Mingazzini. “Supply cannot keep up with demand,” he added.
Munich Remains Germany’s Most Expensive City
The average sales price in Bavaria’s state capital rose by about 6.03 percent to 447,638 euros, compared to 422,176 euros in 2016. This means that housing prices in Munich are about 2.5 times higher than the average for major German cities, making the Bavarian capital the most expensive city in Germany. The 6.03 percent increase was also higher than the average of 4.56 percent for the 82 cities surveyed. This means that prices in Munich are about 70 percent higher than in Berlin. Compared to other major cities, however, prices in Munich are losing some ground. Home prices in Frankfurt (9.01 percent), Hamburg (13.17 percent), and Düsseldorf (18.82 percent) have risen this year.
New-construction transactions are declining
In the new-construction segment in particular, transaction numbers are showing very significant declines in some cases. The supply of new-construction apartments is declining. “This is one of the main reasons for the strong price trends in Bavaria’s major cities. Policymakers must now set the course for more new construction,” says Mingazzini. For example, the number of new-construction transactions fell by 47.63 percent in Regensburg and by about 27 percent in Munich and Würzburg. Erlangen, Ingolstadt, and Augsburg also recorded declines of around 20 percent. Only in Fürth did the number of transactions rise by about 21 percent.
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 from 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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