Prices for existing apartments are rising despite interest rate increases - especially in Gelsenkirchen

Prices for existing apartments are rising despite interest rate increases - especially in Gelsenkirchen

According to a report by www.waz.de, a five-year comparison of the asking prices of existing apartments in 75 major German cities shows the enormous inflation in Gelsenkirchen. Despite declining average prices per square meter in most of the major cities examined over the last twelve months, the data shows that prices are still significantly higher than in 2018. In more than every second major German city, real estate has become more expensive by over a quarter within five years, which indicates massive inflation.

The highest percentage inflation rates are found in cities with low price levels compared to other regions. The average asking prices in Gelsenkirchen have risen by 45 percent since 2018 to 1,561 euros per square meter. Cities such as Leipzig, Mönchengladbach, Hildesheim and Bremerhaven are also recording similarly high growth.

What is striking is that, despite significant increases in some cases, the average price per square meter in some cities is still below the 2,000 euro mark. In addition to Gelsenkirchen, this also affects cities such as Chemnitz, Herne, Hagen, Oberhausen, Duisburg and Hamm, especially from the Ruhr area.

It is clear that this price increase is having an impact on the real estate market in Germany. Particularly in cities with lower price levels, an increase of 45 percent within five years can make home ownership significantly more difficult to access. Potential buyers and tenants could face major challenges due to rising prices. This development could also lead to an increased shift of real estate investments to regions with lower price levels.

The database for this analysis included the asking prices of existing apartments in 75 selected large cities. The values ​​calculated using hedonic methods reflect the square meter prices of existing apartments as of December 1st, 2018 and December 1st, 2023. These are offer prices, not final prices.

Overall, the findings from this analysis illustrate the current development on the German real estate market and provide important information for potential buyers, sellers and investors. Observing and analyzing long-term trends in different regions is crucial to making informed decisions in the real estate market.