diff --git a/lib/private/Installer.php b/lib/private/Installer.php
index a0c7daae293a..164c8bdf041d 100644
--- a/lib/private/Installer.php
+++ b/lib/private/Installer.php
@@ -222,16 +222,18 @@ public static function updateApp($info= [], $isShipped=false) {
 		$info = self::checkAppsIntegrity($info, $extractDir, $path, $isShipped);
 
 		$currentDir = OC_App::getAppPath($info['id']);
+		if (\is_dir("$currentDir/.git")) {
+			throw new AppAlreadyInstalledException("App <{$info['id']}> is a git clone - it will not be updated.");
+		}
+
 		$basedir  = OC_App::getInstallPath();
 		$basedir .= '/';
 		$basedir .= $info['id'];
 
-		if ($currentDir !== false && \is_writable($currentDir)) {
+		if ($currentDir !== false && OC_App::isAppDirWritable($info['id'])) {
 			$basedir = $currentDir;
 		}
-		if (\is_dir("$basedir/.git")) {
-			throw new AppAlreadyInstalledException("App <{$info['id']}> is a git clone - it will not be updated.");
-		}
+
 		if (\is_dir($basedir)) {
 			OC_Helper::rmdirr($basedir);
 		}
diff --git a/lib/private/legacy/app.php b/lib/private/legacy/app.php
index 5cd34e9e2228..1a12c117622c 100644
--- a/lib/private/legacy/app.php
+++ b/lib/private/legacy/app.php
@@ -568,6 +568,20 @@ public static function getAppWebPath($appId) {
 	 */
 	public static function isAppDirWritable($appId) {
 		$path = self::getAppPath($appId);
+		// Check if the parent directory is marked as writable in config.php
+		if ($path !== false) {
+			$appDir = \substr($path, 0, -\strlen("/$appId"));
+			foreach (OC::$APPSROOTS as $dir) {
+				if ($dir['path'] !== $appDir) {
+					continue;
+				}
+				if (!isset($dir['writable'])
+					|| $dir['writable'] !== true
+				) {
+					return false;
+				}
+			}
+		}
 		return ($path !== false) ? \is_writable($path) : false;
 	}
 
@@ -942,6 +956,7 @@ public static function getAppVersions() {
 	 * @return bool
 	 */
 	public static function updateApp($appId) {
+		\OC::$server->getAppManager()->clearAppsCache();
 		$appPath = self::getAppPath($appId);
 		if ($appPath === false) {
 			return false;
@@ -958,7 +973,6 @@ public static function updateApp($appId) {
 		}
 		self::executeRepairSteps($appId, $appData['repair-steps']['post-migration']);
 		self::setupLiveMigrations($appId, $appData['repair-steps']['live-migration']);
-		\OC::$server->getAppManager()->clearAppsCache();
 		// run upgrade code
 		if (\file_exists($appPath . '/appinfo/update.php')) {
 			self::loadApp($appId, false);
diff --git a/tests/lib/InstallerTest.php b/tests/lib/InstallerTest.php
index 4c8eac34afa7..ebaa4ec9e1fe 100644
--- a/tests/lib/InstallerTest.php
+++ b/tests/lib/InstallerTest.php
@@ -17,11 +17,12 @@ protected function setUp() {
 		parent::setUp();
 
 		Installer::removeApp(self::$appid);
+		\OC::$server->getConfig()->deleteAppValues(self::$appid);
 	}
 
 	protected function tearDown() {
 		Installer::removeApp(self::$appid);
-
+		\OC::$server->getConfig()->deleteAppValues(self::$appid);
 		parent::tearDown();
 	}
 
@@ -89,4 +90,69 @@ public function testUpdateApp() {
 
 		$this->assertNotEquals($oldVersionNumber, $newVersionNumber);
 	}
+
+	/**
+	 * Tests that update is installed into writable app dir if the original app dir is not writable
+	 */
+	public function testUpdateIntoWritableAppDir() {
+		$oldAppRoots = \OC::$APPSROOTS;
+		$relativePath = "/anotherdir";
+
+		// Install old version
+		$pathOfOldTestApp = __DIR__ . '/../data/testapp.zip';
+		$oldTmp = \OC::$server->getTempManager()->getTemporaryFile('.zip');
+		\OC_Helper::copyr($pathOfOldTestApp, $oldTmp);
+		$oldData = [
+			'path' => $oldTmp,
+			'source' => 'path',
+			'appdata' => [
+				'id' => 'testapp',
+				'level' => 100,
+			]
+		];
+		$installResult = Installer::installApp($oldData);
+		$this->assertEquals('testapp', $installResult);
+		$oldAppPath = \OC_App::getAppPath(self::$appid);
+
+		// Mark the first app as dir non-writable and create the second as writable
+		$firstAppDir = \array_shift(\OC::$APPSROOTS);
+		$firstAppDir['writable'] = false;
+
+		$path = \dirname($firstAppDir['path']) . $relativePath;
+		\mkdir($path);
+		\clearstatcache();
+		\OC::$APPSROOTS = [
+			$firstAppDir,
+			[
+			'path' => $path,
+			'url'  => $relativePath,
+			'writable' => true
+			]
+		];
+		\OC::$server->getAppManager()->clearAppsCache();
+
+		// Update app
+		$pathOfNewTestApp  = __DIR__ . '/../data/testapp2.zip';
+		$newTmp = \OC::$server->getTempManager()->getTemporaryFile('.zip');
+		\OC_Helper::copyr($pathOfNewTestApp, $newTmp);
+
+		$newData = [
+			'path' => $newTmp,
+			'source' => 'path',
+			'appdata' => [
+				'id' => 'testapp',
+				'level' => 100,
+			]
+		];
+		$updateResult = Installer::updateApp($newData);
+		$this->assertTrue($updateResult);
+		$newAppPath = \OC_App::getAppPath(self::$appid);
+
+		$this->assertNotEquals($oldAppPath, $newAppPath);
+		$this->assertStringStartsWith($path, $newAppPath);
+
+		\OC_Helper::rmdirr($path);
+		\OC::$APPSROOTS = $oldAppRoots;
+		\OC::$server->getAppManager()->clearAppsCache();
+	}
 }