The result is a boom in the market demand for residential property. With a balance of both old and new buildings, the main quality criteria when choosing a location include proximity to the city centre, local amenities and excellent transport connections. The new residential areas both in the city and in the towns and communities in the Hannover region meet these demands.
According to the rent index, the average rent in Hannover is around €9.23/m², and the top rent in a new build is around €14.50. Newly built owner-occupied apartments fetch on average €3,800/m2, and up to €5,500. The price for a detached single occupancy house is well above €300,000 on average, with an annual rate of increase of 5%. The vacancy rate has been below 2% for several years, which is much lower than the so-called fluctuation reserve. Despite the dynamic development of the market, rents and purchase prices for building sites and residential property in Hannover are extremely modest compared to other major German cities.