In recent months, prices for condos and houses in Stuttgart have risen yet again. For years there at the Stuttgart real estate market excess demand. According to the IVD a real estate bubble is still not in sight.
The cause of the rising real estate and land prices appoints Stephan Kippes, director of the IVD market research institute, with the ongoing fear of inflation given the current financial crisis in Europe. Kippes is convinced: “The flight into real values continues.” Another reason is certainly the place just increase the real estate transfer tax from 3.5 to 5.5 percent.
Significant price increases in the last six months
According to the latest report of the IVD pay must be for a condo on average 2,550 euros / sqm. In the spring of this year, there were still 100 € / m² less. A more significant increase is recorded for newly constructed condominiums. Here, the average price per square meter increased within one year from 3,500 € to 4,000 €. Exclusive apartments in prime locations can cost over € 6600 even / m². For condominiums in a very sought-after locations, especially Stuttgart-Mitte, it came to price increases of up to 30 percent.
Even with single-family homes, townhouses and duplexes, an increase in property prices is noted. Currently, buyers have to pay for a detached house on average 700,000 euros. Stuttgart-even prices in prime locations of 3.5 million euros will be offered.
Forecast: 2012 will be higher prices, especially in middle layers further
The high demand in the good to very good locations has meant that the amount of living space has become very scarce. Especially the local real estate agents get the boom to feel positive. Agents in Stuttgart as self-service real estate currently have many inquiries from potential buyers who want to invest in different types of objects. Groups of buyers, both investors and private buyers who want to use the property yourself. Investors are now even willing than the calculated Market value the real estate investing.