Home market values - Sylt's average square meter cost is approximately 14,400 euros.
Home prices on Germany's sought-after North and Baltic Sea coasts are no longer experiencing sharp declines. However, prospective buyers searching for a dwelling on the North or East Frisian Islands in the North Sea need to be prepared to part with a significant amount of money. The situation is more affordable on the mainland and the Baltic Sea. These findings are part of the latest coast report by the countrywide real estate company, Von Poll Immobilien, shared with the German Press Agency.
These coastal areas, including the UNESCO World Heritage Site Wadden Sea, the world's largest continuous mudflat and sand area, remain attractive to buyers seeking homes. The impacts of the Ukraine crisis, increasing costs, inflation, and interest rate hikes have caused prices to tumble, similar to other German regions. But a comparison between the fourth quarter of 2023 and the first quarter of 2024 reveals that the free fall is slowing down, with prices even showing a slight uptick. According to the managing partner of the real estate firm, Daniel Ritter, this is a substantial indication for hopeful purchasers impatient for additional price decreases - the corrective phase may be coming to an end.
11,704 euros per square meter of living space for the North Frisian Islands
The costliest area continues to be the North Frisian Islands off Schleswig-Holstein. The islands of Sylt, Föhr, Amrum, and Pellworm saw an average price of 11,704 euros for a square meter of living space in the first quarter, representing a 9% decrease from the previous year's quarter but only a 0.7% reduction from the last quarter of 2023. The high prices are largely attributed to Sylt, a perennially pricy location. There, prices dropped by 6%. On average, a square meter of living space on Sylt costs 14,424 euros.
The Ostfriesian Islands off the North Sea also have rising prices, with houses on Norderney, Juist, and Spiekeroog averaging 8,833 euros per square meter - an increase of 2.4% from the previous year's quarter. Prices on the mainland are significantly lower. The average price on the land is less than a third of those on the islands. The most affordable home was in the Wesermarsch district, which had an average of 1,872 euros per square meter in the first quarter.
Rügen, Fehmarn are the most expensive regions at the Baltic Sea coast
The picture is similar at the German Baltic Sea coast, known for its sandy beaches, historic seaside resorts, and quaint fishing villages, but at a much lower price level. The priciest regions with prices above 3,500 euros per square meter in the first quarter were the islands of Rügen in Mecklenburg-Vorpommern and Fehmarn in Schleswig-Holstein. The most expensive mainland areas were Rostock with square meter prices of 3,864 euros and the peninsulas of Fischland-Darß-Zingst and Usedom, each slightly over 3,800 euros. The cheapest homes could be found in the Vorpommern-Greifswald district, with an average of 1,739 euros per square meter.
"At the Baltic Sea coast, cities' properties, as well as those in good and very good locations with water views or unique residences such as thatched roof dwellings, maintain their value," explained Robert Rothböck, the manager for Kiel, Plön, Eckernförde, Neumünster, and Rendsburg at Von Poll Immobilien. His colleague for Lübeck and Bad Schwartau, Thorsten Claus, added, "The regions of Timmendorfer Strand and Scharbeutz, specifically the first to third row by the water, are particularly stable in value."
Read also:
- Despite the decline, East Frisian Island houses in the North Sea still command high prices, with Sylt's average costing around 14,400 euros per square meter.
- Prospective buyers looking for a home in Schleswig-Holstein's North Frisian Islands need to budget around 11,704 euros per square meter.
- The Ukraine crisis and inflation have contributed to price drops in Ukraine, but the North Sea coast is starting to show signs of recovery.
- Mecklenburg-Western Pomerania's Baltic Sea coast remains attractive with regions like Rügen and Fehmarn having prices above 3,500 euros per square meter.
- Lower Saxony's real estate prices on the North Sea coast remain stable despite the market trends, albeit lower than the North Frisian Islands.
- The modest housing prices on the German mainland, such as in the Wesermarsch district, offer a lower cost alternative to the North Sea and Baltic Sea coasts.
- Inflation has affected real estate prices worldwide, but Germany's property market, including the coastal areas, has become more affordable compared to previous years.
- According to the German Press Agency, the real estate price for a square meter of living space on the North Sea coast is lower than on the Baltic Sea coast.
- Fehmarn and the North Sea coast are becoming more popular due to investments in infrastructure and connectivity, resulting in increasing real estate demand and prices.
- Hamburg, known as the "Gateway to the World," has a mix of high and moderate real estate prices, reflecting the vibrancy and diversity of the city's economy.
