There was an interesting piece in the Sunday Bild (Bild Am Sonntag) today. They went and researched via Immobilien Scout 24.....an internet service that helps to sell properties. The topic was.....just how fast housing prices are moving.
The trend over the past five years for condos? A thirty-two percent increase over the entire landscape of Germany on average.
In areas of larger and more urbanized cities? It went even higher. Wolfsburg was cited with almost 70 percent increase, and Ingolstadt with a 68 percent increase.
Berlin over five years is sitting over a 55 percent increase.....with Hamburg ten percent behind Berlin.
If you had bought a two-bedroom condo in Berlin back in 2010 for 200,000 Euro (the likely price for a mid-upper-scale two-bedroom deal with a balcony and underground parking....nothing fancy but in the moderate appearance).....today it'd probably be worth 310,000 Euro. In another five years? It might actually go up over 480,000.
The lesser cities....their prices are mostly stabilized and haven't seen any growth in the past five years. If you go and look at S-bahn construction trends....more and more towns around the massive urban areas are trying to get a line out to their village or town.....and get into the pricing escalation business.
The odds of some lower middle-class guy being able to afford this type of condo? It just won't happen. This guy won't have the down payment or the type of job that would allow him to pay 2,000 Euro a month on some mortgage like that.
A housing bubble growing? If you watched Florida and California back in the 1990s and up to 2008....that's the type of atmosphere that people accepted as 'normal', and no one questioned that. You just come to sense that the trend is repeating itself here in Germany.