Housing market data Q2/2021: Rents and purchase prices continue to rise
The empirica housing price index continues to show rising prices, especially in the condominium segment (+3.2% quarter-on-quarter) and detached and semi-detached houses for sale (+2.9% quarter-on-quarter).
The increase in rental flats is also positive at +1.1%, but continues to lag behind the purchase prices. In some rural districts, purchase prices, especially for existing properties, are jumping sharply. Compared to the same quarter of the previous year, there are increases of +30% to over +50% for flats, albeit from a rather low starting level.
Stopped rent cap impacts offered rents in Berlin
Until 2018, it looked as if new contract rents for flats from the existing properties were increasingly catching up with other growing economic centres in Germany. Since the second half of 2018, however, these rents had fallen again somewhat in the empirica property price index and then remained at a relatively constant level between 9.25 and 9.35 euros/m² since the spring of 2020 when the cap began. On 25 March 2021, the Federal Constitutional Court ruled that the law on rent caps in the housing sector in Berlin (MietenWoG Bln), i.e. the “rent cap”, is null and void. In the second quarter of 2021, a jump to the mid-2018 level of around 9.80 euros/m² can now be observed. In the coming months, it will be necessary to observe more closely in which direction the trend will now continue.
How to Get Our Data
Our clients can access the current data of the empirica property price index with further time series on Berlin and other important property markets via the Market Studio. The empirica regio Housing Market Reports also contain the latest quarterly data and much more information on the respective region. Further information on the current price index can also be found on the website of empirica ag (in German).