Please activate JavaScript!
Please install Adobe Flash Player, click here for download
ePaper created 2014-04-15, 13:56:41 | version 1.30.00
16 Management report – münchener Hypothekenbank eg l Annual report 2013 Property and property financing markets Residential property – Germany The upswing in the German housing market is now in its fourth year and is primarily marked by the following factors: continu- ally rising housing prices and rents, a clearly visible migration of mainly younger people to major cities, a higher level of new construction activity, and a favourable development of income and employment figures. “The favourable development of the German residential property market also reinforced demand for property financing.” The overall pace of price increases only accelerated slightly last year. Based on figures prepared by the Association of German Pfandbrief Banks (vdp), prices for residential property were 4 percent higher than in the previous year, following a gain of 3.9 percent in the 2012. Prices for condominiums posted the highest increase and rose by 4.9 percent, while multi-family dwellings were 4.7 percent more expensive and owner-occupied houses gained by 2.6 percent. The development of prices was primarily influenced by the situ- ation in major cities as well as university cities and prosperous mid-sized centres, where the number of residents has risen sig- nificantly in recent years. Demand continued to exceed supply as new construction of apartments and houses – especially in the major cities – could not keep up with the rapidly rising num- ber of new arrivals. The number of building permits increased again, even though when viewed on a long-term comparative basis this figure was still far removed from previous levels. By the end of November permits to build more than 245,000 apartments had been ap- proved, or 13 percent more than at the same time in the previ- ous year. However, the actual demand for new apartments re- mains higher. Development of property prices in germany (year 2003 = 100) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 120 118 116 114 112 110 108 106 104 102 100 98 122 124 Source: Association of German Pfandbrief Banks As of: February 2014 Owner-occupied residential property houses condominiums