“Fatal development”: Housing prices are rising sharply despite the Corona economy

Anyone who wants to buy their own apartment or house must reach deeper and deeper into their pockets. At the end of the third quarter of this year, the Federal Statistical Office “Destatis” even announced accelerated price growth. With an increase of 7.8 percent compared to the same quarter last year and 2.6 percent compared to the second quarter, “prices in Q3 2020 rose on average by as much as in Q4 2016, despite the Corona crisis.

The federal office limits the fact that these numbers are a “flash estimate.” This is based on “limited information” compared to that included in the regular publication of house price developments on 28 December. Due to the “acute interest in the possible effects of the Corona crisis on developments in the real estate market”, these preliminary results have been published.

“Alarming,” said Chris Kühn, spokesman for construction and housing policy for the Greens in the Bundestag, “an uncontrolled rise in residential property prices.” Meeting the “basic social needs” is becoming a problem for more and more people in the country. This “fatal development” also proves the “failed housing policy of the federal government.”

Only the prices of flats and houses are rising in Berlin

At the end of the first half of the year, the Real Estate Valuation Commission stated that the Berlin market had halved sales of both developed and vacant real estate compared to the same period last year. In the area of ​​residential and commercial buildings, cash turnover fell by 34 percent. Experts have combined this with rent restrictions, which freezes rents, sets state limits and prohibits higher prices.

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Background: With a limited rent, the prospect of an increase in the value of the property is blocked because the price depends on the level of the available rent. The expert committee calculated an eleven percent lower “average purchase price” for residential and commercial buildings. The committee’s calculations are based on signed and legally binding purchase agreements, so the data are considered to be particularly valid.

Seven percent plus house prices

According to the main appraisers in Berlin, the prices of apartments and houses are still rising. Although fewer properties were traded here than in the same period last year, it was at higher prices. The average purchase price of apartments increased by six percent. In the case of private homes, it was even seven percent. Average free land prices for this “individual housing construction” have even risen by ten percent.

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