Real Estate prices in and around Munich have risen up to over 50 per cent in the period of the last five years, according to the German Association of Real Estate Consultants, Brokers, Managers and Experts (Immobilienverband Deutschland IVD Bundesverband der Immobilienberater, Makler, Verwalter und Sachverständigen).
The prices for rent and purchase have been growing steadily for years, as the five-year comparison of prices in report of the Association show. Rental prices are growing slower than the buying prices for houses. Rent prices in Bavaria have risen about 30 per cent within the past ten years. While the average rent price per square meter in Kempten, Nuremberg and Augsburg has risen to a little over 9 Euros per square meter, the average price for Bavaria as a whole is close to 8 Euros.
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First time renters in Munich are currently paying an average of 17 Euros per square meter, but prices go up to over 30 Euros. The prices force more and more employees to move from Munich towards Augsburg and to commute, which again causes higher prices in and around Augsburg. The rent for an attached house in Augsburg some ten years ago was somewhere in the neighbourhood of 650 Euros, now it’s about 1.300 Euros.
There are a host of reasons for the prices skyrocketing. The prices of building land have risen during the Euro crisis. New provisions, most of them regard energy saving and environmental protection, are driving the prices up for builders. The owners are trying to compensate this with higher rents, and there is of course the growing housing demand. In one of our next articles we’ll give you examples of prices house-buyers are paying in and near Munich