The prices for houses and condominiums continued to rise sharply throughout Germany in the first quarter of the year. The increase is particularly steep in seven cities.

One of countless: Search advertisement for an affordable apartment on a bulletin board in Frankfurt's Goethe University.

Dhe prices for residential property continued to rise across the board at the beginning of the year. In the first quarter they were on average five percent higher than in the same period last year, as the Federal Statistical Office announced on Wednesday based on preliminary results.

Accordingly, prices climbed both in cities and in rural regions. The increase in the seven largest metropolises was particularly strong at 8.6 percent for condominiums and 6.9 percent for single and two-family houses. In rural districts with a more densely populated population structure, the price increase was lower: apartments rose by 1.7 percent, houses by 4.3 percent.

Since the end of 2015, the prices for residential property have risen by 22 percent nationwide. With an increase of 40.8 percent, condominiums in the metropolises had above-average price dynamics. One- and two-family houses rose by 36.4 percent in the seven largest cities. In other large cities and outside the metropolitan areas, prices have also increased significantly since 2015, according to the Federal Statistical Office.

The low interest rate policy of the European Central Bank is seen as a driving force behind the flight into concrete gold. The Bundesbank has long been warning against excessive exaggerations in real estate prices in German cities – especially in the seven metropolises of Berlin, Düsseldorf, Hamburg, Frankfurt, Cologne, Munich and Stuttgart.