More than one in three single-family homes on offer in one of Germany's eight largest cities costs more than one million euros, according to an analysis by the property portal ImmoScout24. At the same time, demand for these properties is lower than the available supply, the company announced on Tuesday. In rural areas, the same imbalance applies to the lowest price bracket: supply is plentiful, while demand is weaker.
According to ImmoScout24, 34 percent of all single-family home listings in the metropolises of Berlin, Hamburg, Munich, Cologne, Frankfurt, Düsseldorf, Stuttgart and Leipzig fall into the highest price bracket of more than one million euros. Yet only one in four contact enquiries made through the portal (24 percent) relates to these properties. The strongest demand is for houses priced between 500,000 and 750,000 euros, which attract 30 percent of enquiries. Supply in this bracket is slightly lower, at a share of 27 percent.
In the countryside, demand is concentrated above all on single-family homes priced between 250,000 and 500,000 euros. Forty-nine percent of all contact enquiries concern such properties, while this price bracket accounts for 44 percent of listings. Thirty-one percent of the single-family homes advertised cost less than 250,000 euros, but only 26 percent of contact enquiries are directed at this price bracket.
Supply and demand also diverge considerably in parts of the metropolitan hinterland and in independent cities, according to ImmoScout24, particularly in the 250,000 to 500,000 euro bracket. In the areas surrounding the metropolises, just under half of all enquiries relate to these houses, yet they make up only 39 percent of the supply. The situation is similar in independent cities, although the gap there is smaller.
"Single-family homes are scarce in the metropolises and are therefore usually high-priced," explained ImmoScout24 chief executive Gesa Crockford. "In rural areas there are considerably more affordable offers, but these are often older, in need of renovation, or located in regions with lower demand. Accordingly, a large share of demand there also goes to higher-priced properties."
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