Price developments during the pandemic

At the start of the coronavirus outbreak in spring 2020, we were often asked how prices were likely to develop in the course of the pandemic. Will the restrictions on economic and private life have an effect on purchasing behaviour, and thus a negative impact on purchase prices?

Twelve months on from the outbreak of the pandemic, it is fair to say that, no, there have been hardly any negative effects on Berlin’s property market. According to various studies, purchase prices continued to rise in 2020. The number of people searching for a home of their own has even increased. Thus, compared to 2019, there were just under 38 % more enquiries [10] for owner-occupied apartments in Berlin. And it’s not just Berlin – demand has increased throughout Germany.

Developments in the demand for owner-occupied apartments


[11]

When I talk with our estate agents about the current situation and about our conversations with our customers, I notice that the search criteria of prospective buyers have changed. The pandemic has greatly increased the importance of an apartment, and for many people it has become more crucial than ever to have a living space that meets their wishes. In this context, two search criteria have proved especially important and altered:

1. The size of the apartments / the number of rooms has become more important.

2. A balcony or terrace has become increasingly essential.

The life of a major city such as Berlin lives rests on the ability to meet people. In restaurants, in parks or when shopping in the shopping districts. There has been a change here. The desire for a large apartment with a balcony or separate room has always been very important, but has become even more so.

With its regulations, reduced working hours and the requirement to work from home, the pandemic has ensured that people’s apartments have become more important than ever as places of sanctuary. An additional room for a home office, and a balcony in order to get some fresh air and sunshine, have changed the search behaviour of many potential buyers. Thus the number of enquiries for apartments with balconies has increased by 29 %, and apartments between 100 m2 and 150 m2 in size have received just under 65% more enquiries. [12]

The unwaveringly high demand for acquiring living space by moving to the city or within the city, or as an investment, has resulted in a further increase in prices. Within Germany, the greatest increase was in Berlin. Compared to the rest of Germany (9.4 %), prices increased by 12.5 % in Berlin . [13]Prices have continuously developed throughout the metropolitan area and have grown constantly since 2012. In the fourth quarter of 2020, the average price per square metre was €4,596/m2, according to statistics published by empirica/Value AG.

Purchase price development for owner-occupied apartments in Berlin 2012 -2020


[14]

The general conditions of Berlin’s property market and the pandemic mean that demand for property remains constant and that prices have continued to rise. Unfortunately, the pandemic is far from over and we must therefore wait and see how the market will react to the additional measures.

We will continue to monitor the Berlin property market for you and keep you continuously updated on any developments via our newsletter.

If you have any questions regarding prices or if you wish to know how the price of your apartment has developed, please get in touch with us.

You can reach us at:

E-mail: contact@aden-immo.com
Telephone: +49 30 61 67 51 15

Legal note: This article does not constitute tax or legal advice in individual cases. Please have the facts of your specific individual case clarified by a lawyer and/or tax advisor.

Photo: © malpetr/Depositphotos.com

_____________________________________________________________________

[10] https://www.immobilienscout24.de/wissen/verkaufen/corona-und-die-immobilienpreise.html
[11] https://www.immobilienscout24.de/wissen/verkaufen/corona-und-die-immobilienpreise.html
[12] https://www.immobilienscout24.de/wissen/verkaufen/corona-und-die-immobilienpreise.html
[13] https://www.presseportal.de/pm/31321/4812728
[14] https://de.statista.com/statistik/daten/studie/553618/umfrage/kaufpreise-fuer-eigentumswohnungen-in-berlin/

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