Real estate market on Sylt: Strongly increasing supply, but no bargains

The North Sea island of Sylt is one of the most exclusive real estate markets in Germany. But the supply of existing homes is increasing faster than in any other luxury community. However, these do not become more affordable.

More and more houses are for sale on the popular holiday island of Sylt. The supply of existing houses has increased more than sixfold (plus 514 percent) since the second quarter of 2022, as the real estate portal ImmoScout24 announced in an evaluation. For four years now, the offering on Sylt has been growing significantly more than in the rest of the country.

“Even in comparison with other high-priced residential locations such as Starnberg or Rottach-Egern, the development is exceptional,” the study said. Nationwide the increase is 110 percent, in Starnberg it is 185 percent and Rottach-Egern is 174 percent.

“Those interested in buying can now find significantly more choice on Sylt than just a few years ago,” said ImmoScout24 managing director Gesa Crockford. The development is also reflected in the so-called advertising activity. On average in the past second quarter, 13 times more houses were advertised in the municipality of Sylt than in an average German municipality.

“There are no bargains”

Several factors are responsible for this development - from changing market conditions to stricter rules for holiday apartments on the island. Sylt is one of the most exclusive real estate markets in Germany. Prices per square meter of more than 12,000 euros are quoted for existing houses - significantly more than in Munich.

Although the supply on Sylt has grown significantly more, the price correction is not any greater. “There are still no bargains on Sylt,” emphasized Crockford. "After the correction, offer prices have stabilized at a high level."

Since the peak in the second quarter of 2022, the asking prices for houses have reportedly fallen by twelve percent. This means that development is at a similar level to that in the luxury communities of Starnberg (minus 14 percent) and Rottach-Egern (minus 11 percent). Across Germany, the price correction in the same period is significantly lower at two percent, emphasized ImmoScout.