Berlin, September 25, 2019 – According to the ACCENTRO Homeownership Report 2019, while the number of condominiums sold in major German cities declined overall in 2018, purchase prices rose significantly on average. The report also noted that several locations in the new federal states experienced particularly positive trends.
High Price Increases in Halle, Chemnitz, and Rostock
For example, Halle (Saale) in Saxony-Anhalt posted the highest price increases of all major cities, with a 35.56 percent rise compared to the previous year. Jena in Thuringia ranks third with a 28.48 percent increase, and Chemnitz also stands out with a 17.56 percent rise. This is because Chemnitz was already one of the frontrunners in last year’s report, recording a price increase of 19.74 percent in 2017. The Saxon city is thus experiencing a sustained upward trend in price development. Rostock, the most populous city in Mecklenburg-Western Pomerania, is another East German city in the top ten of major cities with the largest price increases in 2018. Cottbus, which also saw a strong price increase of 18.23 percent last year, recorded a further rise of 8.40 percent in 2018.
Leipzig is one of the most active housing markets in eastern Germany and nationwide
Leipzig continues to rank eighth in terms of sales volume, just behind the seven “A-cities.” In terms of transaction numbers, the Saxon city even outperforms some of the top-7 locations and ranks fifth nationwide in the number of condominium sales. “Saxony’s largest city is consolidating its position as one of Germany’s most important housing markets, as evidenced by its above-average activity,” explains Jacopo Mingazzini, CEO of ACCENTRO Real Estate AG. In terms of sales per 1,000 residents, Leipzig ranks seventh; last year, it was even ranked second.
New construction is growing more strongly in smaller metropolitan areas
Leipzig, however, shows similarities with the top seven metropolitan areas in the new-construction segment, where—as in most “A-class” cities—a clear downward trend is emerging. The number of new-construction apartments sold fell by 11.58 percent compared to 2017. In Dresden, the capital of Saxony, new-construction sales also declined to 1,205. However, unlike in Leipzig, new construction activity in Dresden is disproportionately high. This places the Saxon state capital in fifth place, behind Berlin, Hamburg, Munich, and Frankfurt am Main. Chemnitz (Saxony) and Cottbus (Brandenburg) also stand out positively, having confirmed their strong price growth from the previous year in 2018. In addition, Jena (Thuringia), Halle (Saale) in Saxony-Anhalt, and Rostock (Mecklenburg-Western Pomerania) posted strong figures in 2018 in terms of new-construction sales, sales revenue, and purchase price growth.
About the ACCENTRO Homeownership Report
ACCENTRO Real Estate AG has now published its Homeownership Report for the twelfth time. The analysis is based on homeownership transactions in the 2018 reporting year across 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 Germany’s ten most populous cities and trends over the past eleven years are also available online in the ACCENTRO database and can be filtered individually.
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 portfolio holders, 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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