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Bavaria: Real estate prices are exploding – rents are unaffordable!
Bayreuth offers affordable real estate compared to expensive cities like Munich. The article highlights the affordability of home ownership in Bavaria and analyzes current market trends.
Bavaria: Real estate prices are exploding – rents are unaffordable!
Bavaria is currently the most unaffordable state for property buyers in Germany. A study by the Cologne Institute for the German Economy (IW) and the credit broker Interhyp shows that the affordability index for Bavaria is 84 points. This puts the state well behind the Germany-wide average of 100 points, which is defined as healthy affordability. Whether Munich or the surrounding area - real estate prices are extremely high, especially in the expensive regions on the edge of the Upper Bavarian Alps, which increases the burden for buyers. In cities like Miltenberg, Straubing, Ingolstadt, Erlangen and Bayreuth, however, residential buildings are noticeably more affordable, as sueddeutsche.de also states.
The Miesbach district, known for the popular Tegernsee, is particularly eye-catching - it has the lowest index value of just 52 points. These figures make it clear that purchasing a home in Bavaria has become a financial burden for buyers. On average, buyers here have to spend the highest proportion of their net income to fulfill their dream of owning their own home. According to the study, an apartment is considered affordable if buyers do not spend more than 35% of their monthly net income on it. But the reality is different in the big cities: the seven largest German cities, including Munich with an index value of 59, are all below this threshold, which makes the situation difficult for buyers.
Growth forecasts and new construction funding
Affordability has worsened in recent years, although there was a short-term improvement two years ago. Experts expect that purchase prices and rents will continue to increase by three to five percent annually. These forecasts are supported by stagnating construction activity, which is further driving up prices. Jörg Voigtländer, an economist, calls for comprehensive support for new construction in order to defuse the tense situation on the real estate market, as sueddeutsche.de reports.
In a nationwide comparison, Saarland is the most affordable federal state with an index value of 151, while Holzminden in Lower Saxony has the highest affordability in Germany with 174 points. These cities offer space for buyers without overspending financially. The index not only reflects city prices, but also citizens' disposable income, which was precisely recorded by IW Cologne and Interhyp.
In summary, property price developments in Bavaria are causing a lot of discussion. Purchasing in expensive cities has become unaffordable for many, while other regions in the Free State offer cheaper prices. The solution could lie in increased housing construction and support for new construction projects in order to counteract the tense market situation and give prospective buyers a better chance.