DGAP-News: Accentro Real Estate AG: Continued Growth in Condominium Prices in Major Bavarian Cities
DGAP-News: Accentro Real Estate AG
/ Key word(s): Real Estate
Continued Growth in Condominium Prices in Major Bavarian Cities
Berlin, 02 October 2019 - The number of condominiums sold in Munich has decreased slightly and remains in the 4-digit range with 9,846 units sold (2017: 9,950). This implies a dip by roughly 1.05 percent. At the same time, the trend in revenues points up. Sales revenues in 2018 totalled 4.761 billion euros (2017: 4,454 billion euros). This equals a revenue increase by 6.89 percent. The growth was achieved despite the drop in new-build property sales, with the number of new units sold dropping by around 9.00 percent to 2,730 (2017: 3,000 units). "The supply of new-build property continues to lag far behind the strong demand for homeownership in Bavaria and specifically in Munich," explained Jacopo Mingazzini, CEO of ACCENTRO Real Estate AG. This is the gist of the new 2019 ACCENTRO Homeownership Report that is based on the analysed data of property valuation committees of the 82 largest housing markets in Germany.
Out of the eight housing markets captured in Bavaria, the ones in Würzburg, Nuremberg, Augsburg and Fürth also registered a drop in the number of transactions. In Würzburg, the decline amounted to an actual 16.2 percent. Inversely, the number of transactions positively soared in Ingolstadt and Erlangen with an increase by 37.72 percent and 17.29 percent, respectively. Regensburg registered a modest upward growth by 4.09 percent.
The price trend, however, presents a different picture. Price growth was reported from all cities except Würzburg and Ingolstadt. In fact, Augsburg registered a double-digit price hike by 18.00 percent. Similarly, Nuremberg suffered a decline in the number of transactions and total revenues but achieved an increase in revenue per sale by roughly 6.89 percent. This contrasts with a slight decline by 2.46 percent in Würzburg. "The keen interest in homeownership in the major cities of Bavaria is reaffirmed by these figures," elaborated Mingazzini, adding: "Demand continues to exceed supply."
Munich Remains Most Expensive German City
The average selling price in Munich, state capital of Bavaria, rose by around 8.02 percent year on year, climbing from 447,638 euros in 2017 to 483,547 euros a year on. Accordingly, Munich continues to top the ranking of the most expensive German cities in terms of condominium prices.
New-Build Transactions Keep Slowing down
The-in some places rapid-decrease in the number of sales is most conspicuous in the new-build segment. The supply in new condominiums is drying up. Erlangen is the only city where the number of transactions in the new-build segment went up. "So, the slowdown remains one of the main reasons for the brisk price trend in major Bavarian cities. But housing construction is also hampered by the shortage in development land and long-winded permit procedures. This appears to be the obvious reason for the decline in new-build construction despite robust demand. Now, as then, it is up to the body politic to pave the way for more housing construction," said Mingazzini. Specifically, the number of new-build transactions decreased by 45.00 percent in Würzburg, by 43.34 percent in Augsburg, by 10.78 percent in Nuremberg and by 6.86 percent in Fürth. Dips of around 9 percent each were reported from Munich and Regensburg. Only Erlangen and Ingolstadt took exception to the trend with increases by around 20 percent and 8.55 percent, respectively, in the number of transactions.
About the ACCENTRO Homeownership Report
This year's edition marks the twelfth time that ACCENTRO Real Estate AG published its Homeownership Report. The analysis is based on residential property sales transacted in all of Germany's 82 major cities during the reporting year of 2018. A significant distinction that sets the report apart from similar publications, most of which rely on expert appraisals or on analyses of supply-side data, is that it draws on the data of the cities' property valuation committees.
Detailed findings of the ACCENTRO Homeownership Report on Germany's ten most populous cities and the trends of the past eleven years are also available online in the ACCENTRO database, and can be retrieved in the form of selective drilldowns: https://www.accentro.ag/publikationen/wohneigentumsreport/
About ACCENTRO Real Estate AG
ACCENTRO Real Estate AG is Germany's market leader in housing privatisations. In addition to its home market of Berlin, the company focuses on auspicious metro regions such as Hamburg, Rhine-Ruhr, Rhine-Main and Leipzig. In its Privatisation business unit, ACCENTRO retails condominiums from its proprietary portfolio to owner-occupiers and buy-to-let investors or-bundled into portfolios-to institutional investors. In its Services & Ventures business unit, ACCENTRO sells apartments on behalf of investors and property developers-including through equity investments in its own right within the framework of joint ventures. ACCENTRO Real Estate AG is listed on the Prime Standard segment of the Frankfurt Stock Exchange (German securities code number WKN: A0KFKB, ISIN: DE000A0KFKB3).
Press and Public Relations Contact:
Karl-Philipp Jann, PB3C GmbH
02.10.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|Company:||Accentro Real Estate AG|
|Phone:||+49 (0)30 - 887 181 - 0|
|Fax:||+49 (0)30 - 887 181 - 11|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||879761|
|End of News||DGAP News Service|
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