While Demand for Property Remains High in Munich, Figures Project a Dip. The Abendzeitung in Munich explained why.
Munich's housing market is stalling, as the sixth Homeownership Report by Accentro suggests. It is based on the analysis of surveyor committee data nationwide, and returned to following outcome: The number of flats sold in Munich showed a clear year-on-year drop in 2012. It added up to a total of 13,160 condominiums, or twelve percent less than 2011. Here is why: “Demand for condominiums in Munich remains as high as ever, but the city has a supply issue,” said Jacopo Mingazzini, head of Accentro GmbH. Munich reportedly ranks first still in terms of sales – and yet the sales total dropped by 5.8 percent down to 3.8 billion euros. If this trend continues, Mingazzini added, Berlin could actually take the lead.
The supply shortage has prompted prospective buyers to go flat-hunting in Augsburg, an hour's drive from Munich. The city ranks tenth in the list, easily outperforming larger cities like Leipzig, Hanover or Dresden. “For some condominium buyers, Augsburg is a genuine alternative to Munich: a major city with plenty of flair, but smaller in scale and more affordable,” said Mingazzini.