: Statistics on real estate, housing and investment

How is the general economic situation of people developing? When is buying or selling worthwhile? What current studies are available? We have made it our mission to collect the most important results from the Federal Statistical Office for you.

Tip! Classic or exotic: Which property is suitable as an investment? The interview: Real estate as an investment (Part 1) + my Investment Atlas for Germany

House Price Index in Germany

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Current Inflation in Germany

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Attractiveness for Real Estate Investments

The shares of real estate companies in Germany give an impression, as does the Federal Statistical Office. Let’s start with the most important question:

How do you assess Germany’s attractiveness as a location for real estate investments in the year?

More statistics can be found at Statista

Germany’s Position in the European Comparison

How would you assess Germany’s attractiveness as a location for real estate investments in 2019 in comparison to other European countries?

2023: The Real Estate Price Drop -6.8%

The latest figures from the Federal Statistical Office:

“The average price of residential real estate fell by 6.8% in the first quarter of 2023 compared to the same quarter of the previous year. According to the Federal Statistical Office (Destatis), this was the largest decline in residential property prices compared to a previous quarter since the start of the time series in 2000.”

This applies not only to existing properties, but the sentiment is also reflected in new construction.

Completion of residential units in residential and non-residential buildings

Here you can see the official evaluation of: “Completion of residential units in residential and non-residential buildings* in Germany (in thousands)”. The latest figures are still from 2022. In the first half of 2023, construction permits were granted for 135,200 residential units in Germany, whereas 200,000 would have been needed to achieve the planned target of 400,000 new buildings for the year.

• Target 2022: 400,000 newly built residential units
• Achieved: 292,000

Residential construction stagnates: Number of approved housing units

How has the number of approved housing units in residential and non-residential buildings in Germany developed? The number of new approvals is decreasing, as well as the actual newly built units.

– 27.1 % in 20 years

Number of approved housing units in residential and non-residential buildings in Germany from 1995 to 2017.

• 2022: 331,300
• 2018: 346,810
• 2013: 270,34
• 2008: 174,691
• 2003: 296,823
• 1998: 475,711

Tip! Interesting statistics

Further studies and statistics can be found on the websites of the Federal Statistical Office. Read more about:

• Heirs and inheritance statistics
• Money investment statistics
• For new construction: Weather statistics

2019: Stable growth

Income thresholds for classifying individuals and couples as poor or rich

Here you can see the official analysis of: “Income thresholds for classifying individuals and couples as poor or rich based on monthly net income”.

• Poor (1 person): 781 euro
• Normal (1 person): 1.301 euro
• Wealthy (1 person): 3.418 euro
• Poor (couple): 1.171 euro
• Normal (couple): 1.952 euro
• Wealthy (couple): 5.127 euro

More statistics can be found at Statista

Disposable income per employee

Disposable income per employee in Germany from 1960 to 2018. Here you can see the average disposable income per employee in the last 5 years in Germany:

• 2018: 22,792 Euro
• 2017: 22,124 Euro
• 2016: 21,636 Euro
• 2015: 21,098 Euro
• 2014: 20,577 Euro

Unemployment rate on an annual average

Unemployment rate in Germany on an annual average from 2004 to 2019. Here you can see the official evaluation of the unemployment rate in the last 5 years in Germany:

• 2019: 5.3 percent
• 2018: 5.2 percent
• 2017: 5.7 percent
• 2016: 6.1 percent
• 2015: 6.4 percent

Average unemployment number

Average unemployment number in Germany from 2004 to 2019. Here you can see the average unemployment number in Germany over the last 5 years:

• 2019: 2.39 million
• 2018: 2.34 million
• 2017: 2.53 million
• 2016: 2.69 million
• 2015: 2.79 million

2018: Rent Boom

Square meter price for condominium – Top 10

Here you see the cities with the highest square meter prices for condominiums in comparison of the years 2010 and 2018* (in euros per square meter).

1. Munich (Bavaria) with 8,342 euros per square meter; from 6,737 euros per sqm in 2014; increase of 1,695 euros per sqm in 4 years
2. Stuttgart (Baden-Württemberg) with 5.925 Euro per square meter; from 4.744 Euro per sqm² in 2014; increase of 1.181 Euro per sqm²
3. Frankfurt am Main (Hessen) with 6.060 Euro per square meter; from 4.373 Euro per sqm² in 2014; increase of 1.687 Euro per sqm²
4. Freiburg im Breisgau (Bayern) with 4.943 Euro per square meter; from 4.740 Euro per sqm² in 2014; increase of 203 Euro per sqm²
5. Ingolstadt (Bayern) with 4.969 Euro per square meter; from 4.287 Euro per sqm² in 2014; increase of 682 Euro per sqm²

More statistics can be found at Statista

Cities with the highest rental prices for apartments

Here you can see the 10 cities with the highest rental prices in the 4th quarter of the house valuation and the common methods can be found here. Year 2018:

1. Munich: 17.56 Euro/m²
2. Frankfurt am Main: 13.96 Euro/m²
3. Stuttgart: 13.64 Euro/m²
4. Berlin: 12, 29 Euro/m²
5. Darmstadt: 12.23 Euro/m²
6. Mainz: 12.17 Euro/m²
7. Freiburg: 12.13 Euro/m²
8. Wiesbaden: 12.03 Euro/m²
9. Hamburg: 11.94 Euro/m²

2017: New Construction Volume

More on the topic:

• New Construction: Single-family home, building land, financing and costs
• Developer: Realizing new construction

Approval volume for new residential and non-residential buildings

2016: Comparison of Federal States

Number of newly built residential buildings by federal state

Here you can see the number of newly built residential buildings by federal state:

• Bavaria: 21,600
• North Rhine-Westphalia: 17,400
• Lower Saxony: 15,400
• Baden-Württemberg: 14,500
• Schleswig-Holstein: 6,800
• Hesse: 6,400
• Brandenburg: 6,200
• Rhine-Palatinate: 5,900
• Saxony: 4,300
• Mecklenburg-West Pomerania: 2,400
• Berlin: 2,200
• Saxony-Anhalt: 2,100
• Thuringia: 2,000
• Hamburg: 1,400
• Saarland: 900
• Bremen: 500

Development of house prices

Development of house prices in Germany from 2000 to 2017 (2015 = index 100).

Development of the rental price index

Development of the rental price index for Germany from 1995 to 2017 (2010 = index 100)

Other

Development of local rental prices

How have local rental prices developed in your region in recent years?

Controversy: Google Street View

Would it bother you if your house were visible up close in Google Street View on the internet or is that not the case?

Condominium Ownership

How high is the homeownership rate in the individual federal states? Here are the “most recent” figures from the federal statistical office. Since 2014, there has been no new survey. As soon as new data becomes available, we will include it here! Here you can see the homeownership rate in Germany between 1998 and 2014 by federal state.

© Statista 2019 – Source: Federal Statistical Office

Sell hotel – Tourism and guest numbers

Munich, Berlin, Frankfurt and nationwide: Tourism in Germany is booming and has been shining with new record numbers for over 10 years. Accordingly, the number of overnight guests is naturally increasing, as is the demand for hotels in the real estate market. From the stylish, luxurious boutique hotel in the city center to hotels with attached gastronomy and event areas. In Germany, people are not only taking more vacations, but also spending more money on them. As a result, prices for overnight stays are rising, and the hotel industry is becoming a lucrative business for more and more companies and entrepreneurs.

Therefore: The real estate market and the tourism market are both currently on the rise. If you sell now, you will achieve a good selling price – why wait for the next real estate bubble?

Overnight stays in German accommodation establishments from 1992 to 2018 (in millions).

Help and Definition

The most important forms of representation and terms at a glance:

Why are the studies so selective?

The Federal Statistical Office only offers a part of the information for free use. A large portion of the statistics that have been prepared for use are only available with a Premium account. This Premium account at the Federal Statistical Office costs 49 € per month.

What is a bar chart?

Bar charts are the most common form of statistical results used by the Federal Statistical Office. In a bar chart, different values are displayed on a scale. The scale extends along one axis and contains a value, such as the number of inhabitants or the average income. The other axis then carries the different types or classes, for example, different age groups or the subdivision into different districts.

What is a pie chart?

The pie chart format is used relatively rarely by the Federal Statistical Office. A pie chart displays statistical values in a 100% distribution. A pie, meaning a circle, represents 100%. When entering individual values, a straight line is drawn from the edge to the center, creating small triangles, one side slightly rounded. This creates the optical effect of a pie slice. That is why this form of presenting statistical values is also called a pie chart.

What does the Federal Statistical Office do?

As an authority, the Federal Statistical Office is responsible for collecting general, relevant data. This data is used, among other things, by various ministries, as well as by associations, private individuals, and naturally also by students and students. The Federal Statistical Office is based in Berlin, but is also represented by various offices throughout the country.

Are the statistical data representative?

Yes, the surveys conducted by the Federal Statistical Office are mostly representative surveys or results from extrapolations. The data are therefore interesting for many population groups, from the real estate agent who wants to observe the demographic development of a particular area to students preparing for a presentation or a major research paper. Thus, the Federal Statistical Office fulfills a major and important task in Germany.

Further studies and statistics can be found on the internet pages of the Federal Statistical Office. Read more about:

• Heirs and Inheritance
• Saving money / Investment
• Weather in Germany

Decisions before your Purchase

If you would like to buy an apartment, you have the choice of different objects. You can invest in an expensive apartment in an advantageous downtown location to rent it on the free housing market or to move in yourself and live in an attractive and popular residential area. Alternatively, you can opt for an apartment that is located on the outskirts of a city or in the countryside. There are also multi-family houses there, where the apartments are sometimes offered at very reasonable prices. If you are looking for a form of housing that is cheap in terms of monthly costs and if you cannot invest a high purchase price, this option is a very good choice for you.

Purchase Apartments Before Completion

As an alternative to buying an apartment that is already ready for occupancy or rented, you can purchase apartments before the house is built for the purpose of rental or for your own use. When the construction project becomes known, contact the developer to reserve the property of your choice. This is possible if the apartments are to be sold individually to different owners after completion of the construction project. Other construction projects are commissioned by a developer. In most cases, the purpose of the developer is to rent out the apartments himself. It will not be possible to buy the apartments individually.

Rental or Personal Use

Having acquired an apartment, you are free to do with it what you will. This may be renting it out, or using it as a residence. Of course, renting is a smart investment, given that it gives you the chance to pay off your mortgage from the rent you receive from tenants. There is of course also the downside of the time it takes to invest in the property. This may be a time investment beforehand, such as in the form of renovation, or in repairs, given that you do not have a property manager.

Real Estate as Capital Investment: Special

1. Part: Classical or exotic investment – Which real estate is suitable as capital investment?
2. Part: Real estate as capital investment – What do I have to pay attention to?

Purchase of an Apartment in Need of Renovation

The purchase of apartment buildings which are in need of renovation is becoming increasingly popular. There are advantages and disadvantages associated with the renovation of apartments, which you should know before you make the purchase. The disadvantage is that you cannot use the apartment immediately after the purchase. You have to make further investments.

Investment Despite Need for Renovation

The advantages outweigh this disadvantage, however, so that many investors consciously decide to buy an apartment in need of renovation. You have the opportunity to design the apartment as you imagine it in the course of a renovation.

You can integrate new windows and doors and change the room layout. The laying of pipes and electrical lines is much easier when an apartment is renovated. If you already live in the apartment, it is more complicated and costly to adapt the structure of the electrical system or piping to your ideas.

Design the ceilings, walls and floors exactly the way you want them. An object in need of renovation is usually available at a reasonable price.

However, please make sure that there are no conditions imposed by the monument protection authorities for this object. Otherwise, it is important that you consider whether you are prepared to meet these conditions before you buy. Often the editions are connected with a medium or high financial expenditure. You will have to pay this in addition to the purchase price of the apartment and the costs of the renovation.

Purchase of Modern Apartments Without the Need for Renovation

Very popular on the market are apartments that have no need for renovation and are equipped with modern facilities. You buy such an apartment for a higher purchase price. The apartments are ready for immediate occupancy. They have a positive energetic balance and can also be retrofitted to a certain extent according to the individual ideas of the new owner.

Old Building or Apartment in a Modern New Building

Before buying, consider whether you would prefer a old building flat or an apartment in a new building. Both types of living differ from each other. Old buildings are characterized by high rooms and large windows. The rooms are very spacious. Many buyers find this an advantage. However, you should also consider the heating costs for these apartments. These are much higher than in modern apartments, where the room height is usually lower, due to the room height and the resulting larger volume.

In modern apartments the rooms are often smaller. Apartments in an old building also have a special charm, which many potential buyers love very much. It is a very individual decision and also a decision of individual taste whether they prefer an old building apartment or an apartment in a newer building. If you decide on an old building, it is important that the building has already undergone an energetic renovation. This measure can reduce heating costs quite significantly.

Purchase of a Rented Apartment

With the decision to buy a rented apartment, you take over the rental contract in its current form. You do not have the right to make changes to this contract. Rent increases are only permitted within the framework of the legal regulations.

If you are planning a renovation of the apartment, you are obliged to agree this with the landlord. You may not demand that the tenant leave the apartment for the period of the renovation. However, you have the option of providing the tenant with a replacement apartment. You will have to pay for the costs.

Furthermore, it is important to know that you can only terminate the rental agreement if you register your own needs or if the tenant persistently breaches obligations under the rental agreement. This includes repeated non-payment of rent, but also taking in another resident without you having been informed.

Cancellation of Own Use

If the landlord behaves in such a way, as it is given in the lease, only the own need notice remains to you. You can only give this notice if you really intend to live in the apartment yourself. Sometimes you even have to prove this. Before buying a rented out apartment, you should be sure that you do not want to live in the apartment yourself or that your claim for personal use will be upheld by a court. Every tenant has the right not to accept a notice of termination for own use at first and to demand a review by a court. In this case your move into the apartment would be delayed. Of course you have the possibility to contact the tenant before the planned sale. Inform him/her about the planned personal use so that he/she can prepare for it. In many cases the tenants are willing to move out and you can settle the matter amicably.

Demand for Living space

The size of average apartments in Germany is between 30 and 150 m². The apartments have one to five rooms. They are equipped with a private bathroom and a kitchen. If you buy an apartment on the current housing market, you will hardly get offers without your own bathroom. Even a coal heating system is only available very sporadically. The preferred types of heating for apartments in apartment buildings are gas, district heating or heating oil.

Before you decide to buy an apartment, it is important that you determine your real housing needs. In doing so, you should not only start from the current situation. Try to imagine how you want to live in a few years. Most buyers who buy their own home make an investment for life. And so you should know if they want to enlarge their family in the future, if they need a study after finishing a professional training or if they want to set up a guest room for friends or family members.

Unlike the purchase of a single-family home, buying your own apartment offers you only limited possibilities for expanding your living space. You can only share very large rooms. An extension, as it is possible in many single-family homes with a large garden, cannot be realized in an apartment. For this reason, it is recommended that you choose a property that offers one or two rooms more than you currently need. If the purchase price is right, you will also be very well prepared for future life situations after buying the apartment.

On average, apartments in Germany have two to four rooms. The three-room apartment is particularly popular. It is considered an ideal form of living for singles, for single people with children and for couples who do not have children. The average size of the three-room apartment is about 80 m².
Apartments with one room are rather unsuitable for purchase, as they offer only limited possibilities for individual development. Very large apartments with more than five rooms are rare and are often only offered in larger cities. They are located in old city villas and are often very expensive.

Community of Owners

As the owner of an apartment in an apartment building, you become part of a community of owners. The community of owners makes decisions regarding matters that affect all owners. These include the design of the facade, the renovation of the roof, but also the installation of a TV system and the design of the garden.

The majority of the owners’ association has a quorum. This means that you may have to accept decisions that you would have made differently yourself.

As an owner in a multi-family house, you build up reserves for possible renovations. You also participate in the insurance that has to be paid for the building. Property tax is also paid proportionately. These reserves are paid into an account on a monthly basis and are similar to the service charge payments that a tenant has to make. As the owner of the apartment, you are obliged to pay these benefits.

Conclusion: Buying an Apartment

Buying your own apartment is considered very lucrative, especially in larger cities. If you are interested in buying an apartment, Lukinski can be your partner for the purchase. We have specialized in this region and offer you not only a professional purchase transaction, but also a very good knowledge of the market. Get in touch with us by phone to clarify any questions that may arise. We would be happy to arrange a personal appointment with you and present various properties to you.

Roof renovation – Roof renovation refers to the repair of a roof in terms of thermal insulation and waterproofing. Often the roof renovation is carried out as soon as minor damage, such as loose or loose tiles, are noticed. In exceptions and in the case of larger damages, a complete new covering of the roof is also carried out. For this purpose, above-rafter insulation is often used, which is attached to the roof truss over the entire surface. If there is a desire for photovoltaics on the roof, it is a good idea to plan a system as part of a roof renovation.

Requirements & possibilities

However, before starting the renovation, the craftsman looks at the exact structure of the house. It is looked whether it is an old building, new building, with flat roof or pitched roof. Then the options are discussed with the owner of the property and the duration of the work is planned. If they happen to be a roofer themselves, or are very handy, they can also do the roof renovation themselves. In any case, the last step before the actual renovation is to obtain the necessary building permits.

Costs, promotion & free photovoltaic system

The costs of a roof renovation are calculated from the material costs and the personnel costs for architects and craftsmen. Depending on the type of roof renovation, there is the possibility of receiving a grant of 10% from the KFW or a subsidy in the form of a particularly favorable loan. Compare rates: mortgage comparison. There is also the option to receive a completely free roof renovation. After the total costs are determined, the exact costs per square meter can be calculated. To do this, they must apply to a photovoltaic power producer and then receive in the best case a free roof renovation, including installation and lease income for the provision of their roof.

Roof renovation at a glance

• Repair, thermal insulation and waterproofing of the roof
• Full-surface insulation with above-rafter insulation
• Analysis: old building, new building, flat roof or pitched roof
• Do it yourself – only with craftsman expertise
• Building permits are necessary
• KFW subsidy 10% or favourable loan
• Free roof renovation with photovoltaic system & lease possible

Back to the wiki: Real Estate

What will happen to the joint house after the divorce?

Clear conditions regarding the property prevail if the spouses have agreed on the separation of property in a marriage contract. Although the separation of property can save nerves, it is still the exception in Germany today.

• Tip. Our guide for house and apartment: Selling real estate after divorce.

Instead, most spouses live on the principle of community of accrued gains. In concrete terms, this means that the spouses share the assets, goods and debts acquired during the marriage. During the divorce, lawyers ensure that neither spouse suffers any financial disadvantage from the years of marriage.

What happens to property that can’t be easily divided?

Real estate holds enormous potential for conflict during divorce because it cannot simply be divided.

Living separately, but still under the same roof: Hardly any phase is more emotionally upsetting and difficult than the fresh separation and the phase in which both still live in the same property.

Those who suddenly find themselves living separately must note that the departure of one of the partners does not change the ownership of the property. Joint property remains joint property, while sole property remains in the hands of the sole owner. The one who moves out can even claim compensation for use from the other partner. This is based on the rental conditions of the locality.

The case that the property was already owned by one of the spouses before the marriage is rarely the case in Germany.

Instead, both spouses are usually legal owners of the house. In this case, the spouses cannot demand that the other move out. If both are emotionally attached to the house and property and neither wants to leave the four walls permanently, this can develop into a stressful dispute.

What becomes of the shared house in a divorce?

Who is allowed to stay in the apartment when separated?

Possible solutions for heirs

The following possible solutions are available in this situation:

1. The house is signed over to one of the spouses before the divorce. The latter pays the other spouse
2. The house is sold during or after the divorce, the amount is divided
3. If an agreement is not possible, a partial auction of the house can be applied for.
4. The house will be divided (through conversion measures) into condominiums
5. The house remains in the possession of the spouses and is rented out

Keeping the property together

The thought of continuing to own the property may seem tempting, but it carries a huge disadvantage. It doesn’t matter whether the property is converted to include two condominiums or the spouses rent out the house: Both mean that the couple will be connected in the future.

Spouse wants to continue living in the house?

If one of the two wishes to continue living in the acquired house, this partner is obliged to pay the other partner half of the value of the house. This often presents a great difficulty financially for those involved. Furthermore, the person who wishes to remain living in the property in the future must check their finances. In addition to paying off the spouse, there are additional costs associated with taxes, alimony, and utilities. Any repair costs for the property must also be taken into account.

It is not always possible for the individual spouses to meet these high expenses.

Selling the house is often the only sensible solution if both spouses want to leave the marriage without financial damage. After the sale of the house, the proceeds of the sold property can be divided between the two.

Disputes are prevented, as neither of them feels disadvantaged vis-à-vis the ex-partner. In addition, joint obligations, such as the loan that was signed by both of them for the purchase of the house, expire with this.

It should be noted that the sale of the joint property can only take place jointly. Only with the mutual consent of both can the house be sold to a third party.

By the way, you do not have to wait until you have filed for divorce to sell the property; you can already do so after the separation.

The procedure for selling a house before divorce

Experience shows that loose promises are often not kept when it comes to emotional matters. If it has been jointly decided that the house will be sold, it makes sense for the spouses to agree on specific dates for vacating the house. This ensures that the house will be empty at the necessary time.

In addition, it is in the best interest of both if a minimum sale price is set for the home.

The next step is to create an energy certificate for the property. This is a prerequisite for the sale of the property. Afterwards, the real estate agent can already be contacted. He can inform the spouses about the asking price and explain all further steps.

We would also be happy to advise you personally on your property. Please contact us.

Divorce: guide, help and tips

Divorce is complex, it’s true. But you are not alone! Many let themselves separate and in fact, a large part always finds a good solution. Only a small part ends in a quarrel. So that you can prepare well, you will find here our small guides and tips on divorce, family, money and real estate.

• Divorce: Guide

When is there an obligation to present an energy performance certificate?

Spätestens bei the viewing must property owners who want to sell their property present an energy certificate. When advertising, central data such as final energy demand or consumption in kilowatt-hours per square meter (kWh/m²) and year, the main energy source of the heating system, and the year of construction of the building must be stated. Caution is advised if information is missing, as fines of up to 14,000 euros may apply. The certificate or a copy must be handed over to the new owner upon completion of the purchase agreement. There is only one exception to note, these are buildings with less than 50 m² of usable area and listed buildings.

Summarized:

• Energy certificate required when selling
• Required information when advertising: final energy demand/consumption (kWh/m²/year), main energy source, year of construction
• Fines up to 14,000 Euro for missing information
• ID/copy must be handed over to the new owner upon purchase
• Exceptions: buildings under 50 m² usable area, listed buildings

Which energy efficiency classes are included in an energy certificate?

Energy certificates for residential buildings issued after May 1st, 2014 are assigned an energy efficiency class from “A+” to “H”. This classification should also be stated in property advertisements. This allows potential buyers to get a clear impression of the building’s energy efficiency at a glance.

“A+” classified buildings have an end energy demand or consumption of less than 30 kWh/m² per year. The efficiency class “H” refers to residential buildings with a demand or consumption higher than 250 kWh/m² per year. The classification is combined with the band scale already known from the old energy certificate, which visually represents the energy efficiency in colors from green (very efficient) through yellow (moderately efficient) to orange and red (not very efficient).

What are the differences in the energy certificate?

There is a distinction between the consumption certificate and the demand certificate. The consumption certificate is based on the actual energy consumption, such as gas or heating oil. The demand certificate calculates a heat balance of the building. The expected energy consumption for heat losses of the building components, the building ventilation, and the operation of the building services is calculated and compared to a reference building.

What is an energy certificate and how do you read it?

Examples, costs, when which one