DIE WELT on 20 September 2013 “Metropolitan Supply Virtually Dried up”
“The boom on Germany's residential property market has now reached the mid-sized cities,” read a line in DIE WELT, citing the Accentro Homeownership Report. The report suggests that the number of condominiums sold in 2012 in five of Germany's largest seven conurbations declined, whereas transactions in a number of regional centres with populations of half a million or less surged noticeably.
The number of flats sold in Düsseldorf, for instance, totalled 2,871, a decline of 22.4 percent since 2011. The report says further that the number of sales dropped by 12.4 percent in Munich, by 7.9 percent in Cologne, and by three percent in Stuttgart. “The market in Hamburg actually registered a second drop in as many years,” said Jacopo Mingazzini, the Managing Director of Accentro. He added that while the interest in homeownership in Germany's conurbations remains high, the supply in many places has dried up. Then again, condominium sales in Frankfurt and Berlin rose by 11.1 and 6.7 percent, respectively, year on year, because the supply in either city expanded due to construction and housing privatisation. Sales figures have also surged in numerous mid-sized German cities, including Halle an der Saale, which experienced a growth of 131 percent. Private investors who hunt in vain for attractive assets in the major metropolises were said to have started straying into the regional centres.