The tight market situation has pushed house prices up even more strongly in
2017 than in the preceding years. According to bulwiengesa (which covers 126
cities), house prices rose c. 6 1⁄2% and apartment prices more than 10% on
average. As in the preceding years, the strongest price increases were
registered in metropolitan areas and large cities.
However, many smaller cities
also experienced significant prices rises, and in none of the 126 cities did prices
decline. The price boom has an impact on rents, too. In 2017, rents for newly
completed and existing homes rose 6% and more than 7%, respectively. These
are the strongest increases since 1993. Moreover, rent growth has accelerated
since 2009. The “rent brake” has turned out to be an obstacle to investment and
tends to harm tenants rather than protect them.