Berlin, October 2, 2019 – The number of apartments sold in Munich has declined slightly and, at 9,846 (2017: 9,950), remains below the 10,000 mark. This represents a decline of approximately 1.05 percent. Sales performance, however, remains positive. In 2018, sales totaled 4.761 billion euros (2017: 4.454 billion euros), representing a 6.89 percent increase. This increase was achieved despite a decline in sales of new-construction units; the number of new-construction units sold fell by approximately 9.00 percent to 2,730 (2017: 3,000). “The supply of new construction continues to lag significantly behind the strong demand for home ownership in Bavaria, and in Munich in particular,” explains Jacopo Mingazzini, CEO of ACCENTRO Real Estate AG. This is evident from the latest ACCENTRO Homeownership Report 2019, which analyzed data from the appraisal committees for the 82 largest German housing markets.
Of the eight housing markets surveyed in Bavaria, Würzburg, Nuremberg, Augsburg, and Fürth also recorded a decline in transactions. In Würzburg, the decline was as high as 16.20 percent. However, Ingolstadt and Erlangen saw significant increases in the number of transactions, with gains of 37.72 percent and 17.29 percent, respectively. In addition, Regensburg recorded a slight increase of 4.09 percent.
The situation is different, however, when it comes to price trends. All cities except Würzburg and Ingolstadt saw price growth. Augsburg even recorded double-digit price growth of 18.00 percent. Nuremberg, which saw a decline in the number of transactions and total sales volume, also achieved a 6.89 percent increase in sales revenue per transaction. In Würzburg, a slight decline of 2.46 percent was observed. “The high level of interest in home ownership in Bavaria’s major cities continues to be confirmed by the figures,” explains Mingazzini. “Demand continues to outstrip supply,” he adds.
Munich Remains Germany’s Most Expensive City
The average sales price in Bavaria’s capital has risen sharply by about 8.02 percent to 483,547 euros, compared to 447,638 euros in 2017. As a result, Munich, the Bavarian capital, continues to lead the ranking of Germany’s most expensive major cities in terms of housing prices.
New-construction transactions continue to decline
In the new-construction segment in particular, transaction volumes have shown very significant declines in some cases. The supply of new-construction apartments is declining. Only in Erlangen have transaction volumes in the new-construction segment increased. “This decline remains one of the main reasons for the strong price trends in Bavaria’s major cities. Housing construction is also hampered by a shortage of building land, high construction costs, and lengthy approval processes. This appears to be the reason for the decline in new construction despite strong demand. Policymakers must continue to set the course for more new construction,” says Mingazzini. For example, the number of new-construction transactions fell by 45.00 percent in Würzburg, by 43.34 percent in Augsburg, by 10.78 percent in Nuremberg, and by 6.86 percent in Fürth. Munich and Regensburg also recorded declines of around 9 percent. Only in Erlangen and Ingolstadt did the number of transactions rise, by approximately 20 percent and 8.55 percent, respectively.
About the ACCENTRO Homeownership Report
ACCENTRO Real Estate AG has 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 sale of apartments to owner-occupiers and private investors at market-rate rents, 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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