Our figure of the month 05/2016: Reduced price dynamics in the real estate market


The price dynamics of the market for already existing houses seem to decline. While the house prices continue to increase, the growth of the house-price-to-income-ratio has slowed down. Nowadays an employee needs 8 times his annual average gross wage to purchase a detached house.


The strongest downward movement in price dynamics can be observed in parts of the federal states in Eastern Germany (Saxony, Saxony-Anhalt, Mecklenburg-Western Pomerania and Brandenburg). But the same applies to some Western states which belong to the most expensive regions in Germany: Bavaria, Baden-Württemberg and the City of Hamburg. With a price to income ratio of e. g. at least 8.9 (in Hamburg), the purchase of a house is considerably more expensive in these regions than on the national average. In Bavaria even up to 15 annual wages have to be spent on a detached house!

In the German federal capital, however, the price pressure can be expected to continue in the coming years. This cannot be mitigated by rising incomes. An increasing house prices is also observed in the city of Bremen, Hesse and North Rhine-Westphalia.

Other figures can be found here.

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