The weekend Wiesbaden Kurier put out an interesting piece on real estate and pricing over thirty years. It's an average on price per unit.....within the city, within the neighboring areas, and within Mainz.
For example....a family house in 1985 within Wiesbaden....would have run you around 417,000 Euro. Around 2000, it would have gone up to 810,000....then hit a number of bumpy years...advancing and decreasing....sometimes losing ten percent of value in one year. In 2013, the average house price would have finally hit 1,052,000 Euro (yep, over a million for a place in the city).
In 1986, Mainz would have set at 233,000 for a place within the city.....yet today....as close as Mainz is to Wiesbaden....the same house would run you around 547,000.
A one-room condo? Most Americans would shake their head and vow never to waste money such a small-sized item....but here? It's appreciated by single people and seen as an investment worth making. In 1984, it would have cost you 54,000 Euro in Wiesbaden to buy a simple one-room place with a bath and kitchen. It would have peaked around 2000 with a unit running around 80,000 Euro. Today? Prices have retreated and it's around 73,000 (actually hitting 57,000 back in 2004) for today.
Mainz prices with the one-room condo? In 1988, it would have cost you 43,000 Euro. This year, it'd run you around 63,000 Euro.
What all these trends say? Typically....German housing normally advances in most regions at around one to two percent per year. In the Rhein Valley area....various factors screw up the trends, and you can watch a house that was 650,000 one year.....lose sixty thousand Euro the next year, and then two years later....bump back up to 680,000. If you held the house for ten years.....and got into a peak-period.....you'd likely see the house value go up by thirty percent minimum. If you held for ten years and got into a bottom-out period....you might see the value of the house a quarter less than what you valued the house originally.
All of this says alot about buying houses, and the strategy of when you ever decide to sell or move on. You might be standing there with a significant amount of income put up against a house, and in a bad three-year period where it's stupid to sell, but left with the option of renting it out or just paying out of your pocket....until good times arrive.
The difference in pricing for outlying areas....like Taunustein or Idstein? You could cut your cost by half for a house or a four-room apartment/condo. But you need to add on the stress of driving into work or having all the accommodations of a major city versus a smaller town. Cost difference between Wiesbaden and Mainz? Well....it's kind of obvious.....Mainz might be twenty to forty percent different on houses and apartments....with Mainz seeming to be a lesser valued area. More of a working class town? Maybe so.
All these figures lead a person wonder what comes in twenty years. A house in Wiesbaden running a minimum of three million Euro? Yeah. Who can afford a four-room apartment/condo in Wiesbaden....that costs one million Euro? For the working class....I don't see any solutions and more people will be forced out of the city. You can figure Idstein and various smaller communities will grow more with lesser-paid residents....and Wiesbaden will squeeze out the working class who simply can't afford outrageous costs and property taxes.
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