The housing shortage is the main reason for the increase in prices since the
start of the current property cycle in 2009.
House prices, as well as the cost of
undeveloped land have risen by around 25% in Frankfurt, while prices in other
major German cities have undergone even more dynamic growth of 40-80%.
This is due on the one hand to Frankfurt prices and rents already being
relatively high in comparison to the rest of Germany at the start of the cycle. On
the other hand, it is also due to new challenges faced by the financial industry,
meaning that hiring is only taking place in selective areas.
Given that it accounts
for 10% of employment, the financial industry is an important economic sector