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Twenty years after the reunification, Germany is still a divided nation in many respects. This is particularly apparent in the discrepancy between gross income and property prices. The gap between gross income and property price tends to be narrower in the federal states that once belonged to East Germany. Saxony-Anhalt tops the list, closely followed by the federal states of Thuringia and Brandenburg, where less than three times the annual salary is spent on property. The widest gap between income and property price is found in Schleswig-Holstein. The inhabitants of this northern federal state have to spend more than four times their salary on a house. This gap puts a strain on families who want to fulfil their dreams of having their own house and private garden. According to the Federal Statistical Office of Germany, the average net income for full-time employees is €3,049 in western Germany (inclusive of Berlin) and €2,570 in eastern Germany. These figures refer to the third quarter of 2009. Projected to 12 months these figures are 40,908 and 30,840 Euros, respectively. The highest gross income (€3,706 per month) is attributed to people in Hesse. Employees in Mecklenburg-Western Pomerania earn the lowest average salary (€2,509 per month). If there was a direct relationship between a low average income and low property price in each federal state, an ideal location would be Mecklenburg-Western Pomerania. Mecklenburg-Western Pomerania provides secluded beaches on the Baltic Sea and a lovely lake district, making it the first choice for would be property hunters. The calculation, however, does not add up. Although in January 2010 the quoted price for property was below national average in Mecklenburg-Western Pomerania, the prices are even lower in some other federal states. The lowest property prices for January 2010 were found in Thuringia, with an average of €85,000 per property. The gross income to property price ratio is most favourable for the inhabitants of Saxony-Anhalt. Here, the average price for a house amount to €86,000 and the average gross income per year is €30,732. What is the situation like in the wealthier parts of Germany? Wealthier parts of Germany are traditionally towns like Baden-Baden in the south west, the region around Lake Starnberg near Munich or the city of Hamburg. The quoted property prices in these parts of the country are about €30,000 above national average, but their inhabitants also earn more than their fellow countrymen. The largest financial burden, whilst comparing gross income and property prices, is on residents in the most northern part of Germany. Cities located in this region, such as Hamburg and Bremen, are an expensive place for property hunters! The federal state with the highest gross income, Hesse, is found at number 12 on the comparison list. It is apparent that Hesse is the most desirable place for Germans who are looking for property. Not only can they afford properties in the federal state they live in, but their high earnings allow them to purchase a summer residence in the Alps or the Black Forest. In conclusion, both property prices and income tend to be lower in eastern Germany, however specific cases should to be analysed individually. Isla Campbell writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.
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