Regional Variation in German Real Estate Prices: Socio-Economic and Pandemic Influences

Andree Ehlert, Andreas Lagemann and Jan Wedemeier ()

No 2402, Bremen Papers on Economics & Innovation from University of Bremen, Faculty of Business Studies and Economics

Abstract: This study examines the real estate market in Germany at the district level, focusing on 401 NUTS 3 regions from 2012 to 2022. Using spatial econometric models, the analysis explores how socio-economic variables and COVID-19-related factors—including infection rates and mobility restrictions—affected regional property prices. Our results indicate that high infection rates and containment measures served as significant housing price drivers, with both direct effects within regions and indirect spillover effects to neighbouring regions. We find that these factors, along with socio-economic variables such as average age and childcare provision, contribute to spatial dynamics in property markets. Robustness checks across regional subgroups and different model specifications support these fin dings. The research contributes to the literature by quantifying the influence of socio-economic and pandemic-related factors on regional real estate price variations and providing evidence of spatial spillover effects. The findings highlight the need for regionally tailored real estate policies to address the diverse impacts of these factors on property markets in Germany, while also offering a framework for analysing similar dynamics in other countries.

Keywords: Regional real estate prices; COVID-19 impact; socio-economic factors; spatial econometrics; NUTS 3 regions; Germany (search for similar items in EconPapers)
JEL-codes: C21 C23 R1 R11 R31 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2024-12
New Economics Papers: this item is included in nep-eur, nep-geo and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:atv:wpaper:2402

DOI: 10.26092/elib/3527

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