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German Condo Affordability Improves as Five Metros Stay Out of Reach

The index gauges affordability for likely buyers using a 35% mortgage-to-income benchmark mapped to 100 points.

Overview

  • The Interhyp/IW Köln affordability index stands at 128 this autumn, higher than in 2023 yet well below the 2015 peak of 221.
  • Model households in the upper 30% of incomes spent an average of 29% of disposable net income on financing, under the 35% threshold.
  • Munich, Hamburg, Berlin, Frankfurt and Cologne remain below the 100-point benchmark, with Munich’s burden around 43% of income.
  • Rural regions average about 26% of income, highlighting a sharp urban–rural divide; among the seven largest cities, Düsseldorf and Stuttgart are the least expensive relative to incomes.
  • Researchers attribute the recent improvement to rising wages and slightly lower interest rates alongside moderate price increases.