Moderate price increase in owner occupied housing in Germany persists

Office property markets also see a positive development

In the third quarter of 2011, prices for owner occupied housing increased by 1.1 percent compared with the previous quarter. The Price Index for Owner Occupied Housing published by the Association of German Pfand­­brief Banks (vdp) climbed to 110.9 points to reach its highest level since the index value was first calculated in 2003. Compared with the corresponding quarter one year before, the index was 2.7 percent higher.


Contrasting with the previous quarters, in the third quarter of 2011, the index rose primarily because of rising prices for single-family and semi-detached houses. The subindex in question was 1.4 percent higher than three months earlier to stand at 110.9 points. Year on year, this is equivalent to a 1.7 percent increase. Prices for condominiums, on the other hand, saw a somewhat more moderate performance in the third quarter than in earlier quarters. The index moved up by 0.4 percent to 111.0 points. By contrast, measured against the corresponding period in 2010, there was a sharp increase in prices for condominiums to the tune of 5.2 percent.


The German office property market also recorded an upward trend in the third quarter of 2011. The vdp Capital Value Index for Office Buildings advanced by 1 percent to 111.3 points. This is equivalent to an increase of 5.9 percent year on year. This development was driven almost entirely by growth in new rental contracts; the vdp Rent Index for Office Buildings rose likewise by 1 percent against the previous quarter. The empirical cap rate index was virtually unchanged.


“Demand both for owner occupied housing and for office premises benefited from a still positive economic development in Germany. Given the uncertainty on the financial markets as a result of the debt crisis, real estate also profited from the fact that it is considered by investors to be a comparatively safe investment. As long as the macroeconomic development in Germany does not suffer a significant and lasting decline, the trends we are seeing at present should continue,” said Jens Tolckmitt, General Manager of the vdp.


The vdp price index for owner-occupied homes comprises two hedonic price indices for owner-occupied single-family houses and for condominiums respectively; these are weighted according to the total number of single-family houses and condominiums in existence.  The two sub-indices of the vdp’s Capital Value Index for Office Buildings (Rent Index and Cap Rate Index) are calculated on the basis of hedonic processes too. The calculations of all indices are made on a quarterly basis by vpd Research GmbH, a vdp subsidiary, using the vdp transaction database, which contains systematically compiled data on prices and value-determining factors of properties going back to 2003.  This information is gathered in connection with properties bought with finance provided by vdp member banks. Today, the database has over 670,000 transaction- and property-related data records made available by 21 credit institutions.

November 15, 2011

additional information

Press materials:

Facts and Figures
Press contacts
Dr. Helga Bender
Head of the Communication, HR & Finance
Phone +49 30 20915-330
send e-mail »
Yvonne Sternkopf
Phone +49 30 20915-380
send e-mail »
Christian Walburg
Manager Investor Relations 
Phone +49 30 20915-340
send e-mail »

   Where we are:   Georgenstrasse 21
   10117 Berlin, Germany

   how to get there
Imprint   |   Privacy  |  Statutes