Photo: Alexander Kagan on UnsplashTo prepare the sector study, which was published on Friday, experts from the consulting firm Deloitte compared data from 68 cities in 23 European countries. Deloitte's head of real estate in Germany, Michael Müller, confirmed that construction prices have risen across Europe, and predicts that rents and property prices in Germany will continue to rise next year.
Disrupted supply chains and material shortages increase risks in the planning and implementation of construction projects.
Construction prices are driven up by both labor shortages and general inflation. However, the rise in interest rates can slow down demand and price growth, Miller said.
According to Deloitte's findings, "it can be said that the construction of new properties in Germany is still below the European average".
In Munich, according to Deloitte, buyers had to pay an average of 10,500 euros per square meter last year for an apartment in a new building. Only Paris, with 13,462 euros, was more expensive.
London, Oslo and Frankfurt are cheaper with 8,400 euros. In Amsterdam, the square meter was 7,600 euros, and in Copenhagen, 7,300 euros. In Hamburg, according to a study by Deloitte, buyers paid 6,900 euros, in Berlin 6,500 for a square meter of living space.
On the other hand, it was favorable in the Bulgarian Black Sea cities of Varna and Burgas, where a new apartment could be bought on average for 900 euros per square meter.
When it comes to monthly rent, Paris was also the most expensive at 29.19 euros per square meter, followed by Oslo, London and Amsterdam. Munich is in tenth place, with 18.90 euros. For Frankfurt, Deloitte determined that the average rent is 15.90 euros per square meter, in Berlin it is 14.30, and in Hamburg 13.60.
In terms of the number of apartments, Germany is in the top third with 43.1 million, or about 51,800 apartments per 100,000 inhabitants. Deloitte, however, believes that there is potential when it comes to new construction, because last year only 372 apartments were built per 100,000 inhabitants, and construction started on 299.
In many countries, the reception of refugees from Ukraine was felt on the housing market, and mostly in Poland, Slovakia and Hungary.
"In the second quarter of 2022, the supply of apartments for rent decreased, as many were used to house Ukrainian refugee families," the study states, according to blic.rs.
Source: blic.rs
