Potsdam: seventh most expensive city in Germany - rental and purchase prices continue to rise

Potsdam: seventh most expensive city in Germany - rental and purchase prices continue to rise

According to a report by www.tagesspiegel.de, Potsdam has now become the seventh most expensive city in Germany in terms of rental prices for newly built apartments. According to a current market analysis by the Berlin research institute Empirica, the basic rent for a square meter of new apartments averaged 15.48 euros in the fourth quarter of 2023 - an increase of 13.7 percent compared to the previous year. In the Germany-wide ranking for the price of newly built condominiums, Potsdam is in seventh place, with the price per square meter being 7,080 euros.

The rising rental and purchase prices in Potsdam are having an impact on the real estate market in the city. Investors may balk due to higher interest rates and increased construction costs, which could lead to a decline in building permits. However, demand for rental apartments remains high, which means that rental and purchase prices are decoupled.

A long-term comparison shows the high purchase prices for real estate in Potsdam, especially in the area of ​​condominiums. These have practically doubled within five years. For experts, this is an indication of the ongoing shortage of supply and the city's growth, which cannot keep up with the need for housing.

However, the current analysis does not take the entire rental market into account, as cheap apartments from cooperatives that are not advertised are not included. This could mean that actual rental prices could be even higher.