Our figure of the month 05/2017: The acquisition of property has become increasingly expensive over the last six years
The purchase price for apartments in Germany has dynamically risen over the past six years and has further decoupled from wage developments. This means that a person with an average income has to spend more than his three-year annual gross wage to gain such a property. In the year 2015, this price-income ratio was still slightly below 3; in 2010, this ratio amounted to only 2.4. The acquisition is most expensive in Bavaria, where the 5.4-fold annual gross salary is required for an apartment.; the lowest price-income ratio of less than 2 can be found in Saxony-Anhalt. Investigations were carried out about all mid-sized residential estates (3-room, around 75 sqm, average equipment and location) which were sold last year in Germany.
The trend of price increase is most pronounced in Hesse, where the price-income ratio rose by over 10 % compared to the previous year. In no other federal state the prices for apartments increased so strong with a comparatively wage increase below average. In contrast, the price-income ratio in Berlin has declined slightly, i. e. housing has become more affordable. This development is due to an increasing creation of highly qualified jobs in Germany’s capital, which has led to a rise in wages above average. In addition, the price dynamics for apartments have calmed down here. However, Berlin's housing price level remains one of the highest in Germany. In total, almost four times the average annual gross salary is required to buy an apartment.
Other figures can be found here.
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