Building land in the Allgäu: Where normal earners find a home!

Building land in the Allgäu: Where normal earners find a home!

Markus Reichart, Mayor of the Marktgemeinde Heimenkirch in the Lindau district and chairman of the Swabian community day, recently addressed the living situation in the Allgäu. There are still some areas in the Allgäu, where building ground is affordable for normal earners - especially in the Westallgäu. In many other regions, especially near Lake Constance and Oberstdorf, it looks very different: there the prices for building ground rise rapidly, sometimes they are considered almost priceless. For many, the dream of home becomes an unattainable illusion, especially in the coveted areas.

Real estate prices in Allgäu have been showing a volatile development for years. In the years 2020 and 2021 there were strong price increases of over 15% and 7% or. From 2022, a decline began that did not come as a surprise in view of market saturation and economic uncertainties. In 2023 the square meter prices fell by around 3.98% and in 2024 a further decline of 3.76% is forecast. These price developments presents many builders and buyers with challenges.

demand and rental prices

The demand for residential properties remains unbroken, especially from towns that want to escape the hectic everyday life and seek the peace of nature. The average purchase price for condominiums in the region is now around € 4,134/m². Rental prices for 1-room studios start at around € 350 per month, while up to € 2,600 per month can be paid for luxurious penthouses. Especially in Kempten (Allgäu), the price range varies significantly depending on the district.

• st. Mang-Kottern: rental prices in the middle area, 2-room apartment from 700 €.
• Lenzfried/Leupolz: higher rental prices for furnished apartments, approx. € 1,230 per month.
• Haubenschloß: Exclusive apartments, 2-room apartments over € 1,700 per month.

High credit costs put a strain on the purchase of real estate and make rental apartments a flexible alternative. Many tenants should therefore pay attention to their flexibility. It is important for investors to rely on sustainable increase in value and a strategic situation in order to ensure the attractiveness of the objects and to meet the requirements of young families and older people who are looking for their living space in rural regions.

The location in the Allgäu

Overall, it can be seen that the situation on the real estate market in the Allgäu has both opportunities and challenges. While rural living space wins anattractivity, high interest rates and increasing construction costs can affect the market. For further developments in the region, both builders and investors are required to show a good knack when choosing their projects. If you want to survive in this lively market situation, you should be careful and plan strategically.

Further information on building plots in Oberallgäu can be found on ImmobilienScout24.

As the current market data show, stabilization of the market could be possible if you observe the trend of falling interest rates. It will be interesting to see how the prices and the demand will develop in the coming time.

For detailed insights into the price trends in the Allgäu, we recommend that the reporting on [Allgäuhit] (https://allgaeuhit.de/wie--die--immobilienpreise-im-allgaeu- Development-Alk-auf-aktuelle-marktdaten/) and if necessary, to the Allgäuer Zeitung to use.