Real estate experts in Germany say they’re confident the country will remain the global leader in the area of real estate prices.
“We are definitely looking forward to the upcoming months, but also for next year,” said Tobias Pohlmann, president of the Berlin-based Realtor.com Group.
The United States, Germany and Japan are the biggest sellers in the country, followed by China, Australia and the United Kingdom.
Realtor.com said in a statement that real estate is expected to remain the fastest-growing segment of the global real estate market in 2020, driven by a combination of economic factors such as a rising number of homebuyers and the impact of the Brexit vote in the United States.
“It’s a global trend,” said Pohlman.
“In many countries, particularly in Europe, people are looking to sell their homes.”
Real estate prices in Germany were the highest among the three countries studied, rising by 9.9% to €1.9 trillion ($2.9 billion) in 2020.
But the average price for homes in the German capital increased by just 0.5% to around €1,300 per square foot, according to Realtors.com.
Real estate in the Netherlands saw a drop of 3.5%, while prices for houses in Paris were the most expensive in the world at €2,300 ($3,300) per square feet.
Germany’s home price gains in 2020 were offset by a slight increase in prices in France and a slight decrease in prices across Europe.
The number of sales in Germany for the first time in a decade was 7,711 in 2020 with the average sales price in the capital rising by 5.5%.
In 2019, the number of homes sold rose by just 2,822.
Germany is the world’s second-largest exporter of homebuilding and home renovation equipment after China, with the country importing almost 30% of its construction materials and 80% of the equipment used in home building, according the real estate consultancy IHS Markit.
Home sales in 2020 in the UK, France and Spain totaled 2,919, 2,769 and 2,691, respectively, according Realters.com, and Germany has the second-highest number of foreign buyers in the European Union behind Sweden.