Berlin has significantly expanded its dominance as a national and international investment destination. At more than EUR 37 billion, the transaction volume of real estate in Berlin has tripled compared with 2020. Rents will continue to rise in 2022, as demand for residential space remains high and supply low.
At the federal level, the new federal government consisting oft he SPD, Greens and FDP promises stable framework conditions and more new construction as well as more innovation and digitization for the time being. With a target of 400,000 new homes per year, the new coalition is even ahead of the previous government´s goals. The reinstatement of the Federal Ministry of Housing, Urban Development and Construction has sent a clear signal that the government is serious about implementing ist housing market goals.
The transaction volume on the German real estate market was a whopping 111 billion euros. According to JLL, this represents an increase of 36% compared with 2020. This new all-time high impressively documents the attractiveness of German real estate arcoss all types of use, with residential investments clearly dominating, of course. The signs are good that this trend will continue. This is because international investors have so far held back during the pandemic years. This is likely to change in 2022.
According to the German Federal Statistical Office prices rose by an average of 12% year-on-year in the third quarter of 2021. This means that the statistics office has recorded the second top increase in a row for the house price index since the start of the time series in 2000, after prices had already risen by 10.8% year-on- year in the second quarter of this year.