The increase in real estate prices in Berlin has outpaced rising incomes in the capital since 2012, according to a Postbank study.
The price of an average 100 square meter apartment has climbed 38.3% since 2012 in Berlin while wages rose just 9.2%.
“The situation in real estate markets is the result of the ongoing low-interest phase,” said Postbank chief economist Marco Bargel in a release. Bargel, like any good bank economist, recommended people buy real estate.
Postbank compared average local salaries with local real estate prices in a convoluted study to discover that Hamburg and Munich are the only cities more expensive than Berlin. Berliners must pony up 15.8 years of an average salary for a 100-square-meter abode while their contemporaries in Hamburg pay 15.9 years and Munichers (Munichians?) 21.
The study said the average annual income in Berlin is €20,529 while people down in Bavaria rake in an average €29.255 a year. Meanwhile the average 100-square-meter condo costs €320,470 in Berlin but €610,490 in Munich.
Still, cities don’t have Germany’s most expensive real estate, the study shows. That honor goes to the county of Nordfriesland, home to the tony island of Sylt with 23.3 years worth of pay.
Cheapest? Osterode county in the Harz mountains. Work for 2.8 years and you own your home. But you’re still stuck in the Harz.