The German real estate market is interesting for several reasons: the economy is booming, the political system ensures legal certainty for property owners and through the refugee crisis and the upcoming Brexit demand for residential and commercial property is high. As a foreign investor, real estate firm or as a supplier for the construction industry, it is essential to know the key facts about the German Real Estate Market.
Where are Germany’s Prime Real Estate Locations?
Especially Germany’s metropolitan areas are essential to the real estate industry. Prime locations are mostly found in:
- Berlin, capital city and centre of the startup scene
- Cologne, central to the Ruhr district, many industrial companies
- Dusseldorf, famous for fashion and art
- Frankfurt, financial industry
- Hamburg, trade centre and hotspot of creative industry
- Munich, automotive industry, culture, travel
- Stuttgart, automotive industry
Residential and office construction is lagging behind the increase in demand for years. As a consequence, rents and thereby property prices are increasing from year to year in these cities. First occupancy residential rents are highest in Munich, with 17€ per sqm. For the next years, rents are expected to increase between 2-3% per year. As office space is scarce, prime rents for office space were 34,7€ per sqm on average in Munich.
Which companies are essential to Germany’s Real Estate Industry?
- Commerz Real, investor, associated with one of Germany’s major banks
- Deutsche Wohnen, residential property
- Aareal Bank, real estate financing
- Bulwiengesa, research and consulting
- Immobilienzeitung, real estate news
- Immobilienscout24, housing exchange
Lists of the most important players of Germany’s Real Estate Market
There are two ways to get to know specific companies: Either get our lists (see below) or write us through our live chat. We have close relations with many of Germany’s most important firms of the real estate market – so simply drop us a line and we will see how we can help you.