High demand for luxury German homes
There has been a significantly high demand for luxury properties in major German cities, with some of the most expensive German homes selling for €16.8million.
The impressive sale came in Neuhausen, Munich, but the highest demand from international buyers for luxury German homes is concentrated in Berlin, says leading international agent, Engel & Völkers.
Top prices for luxury residential properties in Germany’s major cities have developed at a dynamic pace over the past three years. Kai Enders, Member of the Board of Engel & Völkers AG, says that the German market for luxury properties is witnessing a consistently high level of demand.
“The demand from abroad focused mainly on the capital Berlin. We expect the high level of demand for exclusive properties in Germany’s premium locations to continue.”
The report covers data of luxury properties in seven major German cities including Berlin, Düsseldorf, Frankfurt, Hamburg, Cologne, Munich and Stuttgart.
The luxury market within Berlin is continuing to thrive. A particularly popular area of the German capital is the Charlottenburg-Wilmersdorf district. Within Berlin’s luxury market, 41% of sales were generated in this area for freehold apartments and 55% for houses. Top house prices in Berlin are around €8 million.
As a result of many new construction projects, Frankfurt has begun seeing significant market growth. Apartment purchases are on the rise due to the growing trend of ‘vertical living’. The 40 storey One Forty West is a perfect example.
The majority of luxury homes purchased within Frankfurt come from areas such as Sachsenhausen, Ginnheim, Eschersheim, Eckenheim. It is predicted that buyers will continue to be attracted to the Frankfurt luxury market due to employment and educational opportunities.
Luxury property within Cologne has also seen significant growth over the past three years. The most sought-after areas of Cologne for houses include Lindenthal and Rodenkirchen, which are responsible for 90% of total sales. In terms of luxury apartments, 80% of sales came from the city centre and Lindenthal.
Hamburg’s luxury market also continues to flourish, with the bestselling suburbs for houses including Elbe and Groß Flottbek. When it comes to apartments, Alster Lake appears to top the list. The highest priced property sold in the north German city was in Nienstedten, fetched €6.9million.In the freehold apartment sector, Hamburg overtook Berlin, which topped the table the previous year.
In Munich, Nymphenburg is a top target for luxury house buyers, although sales in Munich were more spread out geographically. Most exclusive freehold apartments changed hands in Altstadt, Schwabing, östliche Maxvorstadt and Sendling/Isarvorstadt. An apartment in Sendling/Isarvorstadt achieved the third-highest price overall at €20,700 per square metre.
Dusselforf has seen particularly high demand within the Heerdt district, and the Oberkassel area. The top price in Düsseldorf was in the Heerdt district at €26,100 per square metre, a rise of over 60% in the same period in the previous year (H1 2016: €16,000 per square metre).
Compared to Munich and Hamburg, transactions in Stuttgart’s premium segment were not concentrated on any particular geographical area of the city. The highest sale was for €4million in the Dachswald district.The most expensive luxury properties were sold in the Degerloch district.
Engel & Völkers believe that premium German homes will continue to be a solid investment due to the consistently high demand within the luxury market in Germany’s major cities. House buyers are placing more emphasis on natural materials used within home furnishings, whilst apartment buyers are concerned with high quality finishes.
It seems that a high-end German home in an exclusive location will never lose its allure