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The rising trend of rent and buying prices is going to continue to increase steadily as in the last couple of years. Housing space is becoming rare, especially in metropolises. In this article we are going to show you in which areas both buyers as well as renters have to pay an especially steep price.

Experts confirm the continued drastic expansion of the Real Estate market. The main reason for this is the current low level of interest rates. This leads to a constantly rising number of investors joining the lucrative Real Estate market – something especially affecting renters looking for a new place.

Housing space still is especially scarce but also desirable in big cities. But this development is also affecting agglomeration areas as well as smaller university areas. As housing space in these areas is scarce rent prices are rising rapidly. A rise of up to 10% is predicted in large German cities for the year of 2018.

Only in rural areas do prices in the Real Estate market remain mostly steady. This is mostly cause by young people being drawn to the city creating a constantly increasing shortage of housing in said cities.

The five most expensive and desirable cities in Germany are:

  • Berlin
  • Munich
  • Hamburg
  • Frankfurt on the Main
  • Cologne

The average rent index in German cities obviously looks different: On average an apartment in Germany cost about 6,78€ to 9,61€ per square meter. This is shown by the rent index of Immowelt which gets its data from analyzing the offers on its platform.

A similar picture is painted when looking at single- and double-family houses. As objects of purchase are in high demand prices are increasing as well. Meanwhile owners can rejoice at an enhancement in value. Prices in Hamburg for example have doubled in the last 10 years.

Due to this, smaller cities close to popular cities are becoming more lucrative. The current level of prices is low but they show great economic potential thanks to steady growth. This phenomenon can for instance be observed around Cologne.