Norderney has overtaken Sylt. Real estate on the East Frisian Island is the most expensive in Germany. picture alliance / imageBROKER | Helmut Meyer zur Capellen
The major broker Engel & Völkers has published a new market report on holiday properties. The analysis reveals how prices have developed in German holiday resorts.
According to the report, the island of Sylt is one of the most popular and expensive holiday islands for Germans. This result is not new. But: In contrast to previous years, Sylt is no longer the most expensive island.
Over the past year, another coastal region has quietly emerged as a new, elite location. Nowhere else in Germany are holiday apartments as expensive as on Norderney.
There is movement in the market for holiday properties: in recent months, for example, the most expensive holiday destinations for holiday apartments for sale have been reorganized. The new marginal order for Germany has a surprise in store.
The major broker Engel & Völkers has taken a closer look at developments on the holiday apartment market. The results are published in the new market report 2024, about which Handelsblatt now reported. Accordingly, the elite location of Sylt is no longer in first place in the ranking. The luxury island has been displaced by another German island. The purchase price ranking of holiday apartments at a glance.
Lake Starnberg is located around 25 kilometers southwest of Munich and is therefore popular with tourists and Munich residents alike. It is the fifth largest lake in the country and, due to its great average depth, the second with the most water. According to Engel & Völkers, Lake Starnberg appeals primarily to discerning buyers.
It is said that prices of up to 30 million euros for holiday homes are achieved for exclusive, exceptional properties. The proximity to the economically strong metropolis of Munich also has a positive effect on the location. This, the realtors analyze, attracts wealthy buyers who want to get out of the city to live in the countryside.
Despite the positive location factors, prices for holiday condominiums fell significantly in the second half of 2023 compared to the same period last year. According to the market report, the average price is now around 7,927 euros. This corresponds to a decrease of 14.2 percent compared to the second half of 2022. The experts’ price forecast assumes that prices will remain at a stable level in 2024.
The idyll of Lake Starnberg attracts tourists and locals. This affects the prices for holiday apartments. picture alliance / Wagner | Ulrich Wagner
Garmisch-Partenkirchen is a popular travel destination for skiers, ice skaters and hikers. The health resort is located in the immediate vicinity of the Zugspitze. The highest mountain in the country attracts thousands of tourists to the Bavarian Alps every year with its famous mountain panorama. This also affects the prices of real estate there.
According to the Hamburg broker, top prices of up to 14,500 euros per square meter can be achieved for top holiday homes in Garmisch-Partenkirchen. “The region’s buyers are also characterized by a high credit rating, which is why interest rate developments do not have a major influence on purchasing decisions,” says the market report quoted by Handelsblatt.
However, according to the survey, prices for vacation condominiums fell slightly in the second half of 2023 compared to the same period last year. The data shows a decrease of 2.9 percent. The average price per square meter is therefore around 7,932 euros. “Especially in communities where tourism is characterized by winter sports, there are increasing challenges in dealing with the lack of snow security,” says the report. Nevertheless, Engel & Völkers expects stable to increasing demand for 2024.
The health resort of Garmisch-Partenkirchen at the foot of the Zugspitze with its famous mountain panoramas has been one of the most popular holiday regions in the Bavarian Alps for years. picture alliance / robertharding | Nagy Melinda
Around 50 kilometers south of Munich lies Lake Tegernsee, directly in the Bavarian Alps. It is a popular excursion and tourist destination – probably because it is one of the cleanest bodies of water in the country. This fact attracts many celebrities to the lake, which has a shoreline of almost 21 kilometers. For example, national soccer goalkeeper Manuel Neuer has a property there.
Engel & Völkers emphasizes that top prices are still being achieved for dream properties among the holiday homes with the best lakeside location and mountain panorama on Lake Tegernsee. However, the price of holiday apartments showed a clear downward trend in the second half of 2023.
According to the market report, the price per square meter for an average condominium fell by 7.5 percent. Buyers therefore paid an average of around 11,943 euros per square meter. However, the experts at Engel & Völkers do not assume that this negative trend will continue this year. On the contrary: the broker predicts that prices will stabilize in large parts of the region.
A holiday apartment on Lake Tegernsee is as popular as it is expensive. picture alliance / MiS | Bernd Fei
Sylt is still considered the island of the rich and beautiful. It is the dream island of many Germans, where property prices are higher than in many other places in the country. For holiday homes on Sylt, for example, top prices of up to 29 million euros can be achieved. This is what it says in the Engel & Völkers report.
However, changes to the law mean that new holiday apartments are no longer allowed to be built on the island. This results in a lower supply of rentable properties. Accordingly, the responsible district building authority in North Frisia is currently checking whether the holiday apartments on offer are actually located in building areas whose development plan provides for rental. If this is not the case, the owners will be prohibited from holiday rentals. The first cases of this approach are already known.
For the time being, however, this does not have an impact on the purchase prices. According to Engel & Völkers, the average price per square meter for a condominium on the island fell by 3.4 percent in the second half of 2023. According to the market report, the average price is now 12,547 euros per square meter. But that could soon change, especially for properties that are approved for holiday rentals. However, as soon as other municipalities in the region legally restrict rentals, the future price level could increase.
The holiday apartments on Sylt are no longer the most expensive in Germany. picture alliance / Westend61 | Kerstin Bittner
Norderney is one of the East Frisian Islands in the North Sea, which lies off the mainland of Lower Saxony between the mouths of the Ems and Weser in the German Bight. There are still a few relevant corner bars there, but the country’s oldest North Sea resort has long since made something of itself. This attracts wealthy visitors – which is reflected in the prices.
When it comes to holiday homes, the island cannot yet compete with Sylt and Tegernsee in terms of price. But: The North Sea resort is now at the forefront when it comes to apartment prices. According to the market report, the average price for a condominium in the second half of 2023 was around 13,057 euros. This is the highest average asking price among German holiday resorts in the past six months.
The upper end of the price range for holiday apartments in a very good location on Norderney is up to 25,000 euros per square meter. This means that Sylt’s top values for holiday apartments are exceeded. According to Engel & Völkers, the record on Norderney can be attributed primarily to the low supply on the island, writes the Handelsblatt. Because: Due to the very strict regulations, the housing supply there can hardly grow any more. The price forecast for 2024 is “stable”.
According to Engel & Völkers, the record price for a holiday apartment on Norderney can be attributed primarily to the extremely low supply on the East Frisian island. picture alliance/dpa | Hauke-Christian Dittrich