Prices for German residential and commercial buildings have essentially remained stable during the early months of 2008. While price yielded somewhat outside conurbations, they stayed the same or picked up slightly in Berlin. This is the result of the latest Real Estate Price Indicator published by Estavis every four months. It captures the mean sales price on the basis of actual rents paid at a total of 1,614 residential and commercial buildings.
Compared to the same period last year, prices for residential and commercial buildings in small and mid-sized German cities dropped by about 7% in April 2008. As a survey of 252 properties revealed, real estate prices outside conurbations currently stand at 12.1 times the annual net rent. As recently as April 2007, the multiple was 13.1 times. "Particularly in smaller and medium-sized cities, initial net yield rates for residential and commercial buildings have perked up. This has made investments in these locations even more attractive than they already are," says Rainer Schorr, Chairman of the board of Estavis AG.
Real estate prices in Berlin rose slightly in April 2008 compared to the same period last year. At present, the prices for residential and commercial buildings represent multiples of 15.4 times the annual net rent, as a survey of 154 properties showed. In April 2007, the multiple was 15.2 times.
Every month, Estavis receives offers for a number of properties that are reviewed using a special costing program. The Real Estate Price Indicator captures predominantly the price segment between