8
GERMANY
ISSUE
I
INFOGRAPHIC
Dusseldorf
Affordable apartments are only located in the outskirts of the
state capital. The average rent price for first-time occupancy
is still slightly increasing. In Dusseldorf there are more luxury
apartments than in the other large German cities, compared
to the number of inhabitants.
Münster
The vacancy rate is quite low and highlights the intense
residential market. Thanks to the strong influx of popu-
lation, the supply of residential space is lower than the
demand. Young families and others, who can’t afford
the central locations, move to the cheaper outskirts or
surrounding areas instead.
Bonn
Affordable living space is missing on the residential
market in Bonn, but the number of new-builds has been
rising for years, although not enough to satisfy demand.
The residential vacancy rate is below 1%. Instead,
people are moving to surrounding areas.
Bremen
Inner-city working-class districts such as Walle are becoming
the focus of the market. This traditional harbour- and
industrial district rapidly became the second most expensive
residential location of Bremen.
Cologne
The number of affordable apartments in the city center has strong-
ly declined in the past years. Consequently, people are moving into
surrounding areas instead. The former industrial and commercial
quarters on the right bank of the Rhine, such as Deutz and Mül-
heim, have achieved the largest rent increases.
Essen
There is a relatively high availability of residential space,
but at the same time quite low public building activity.
The residential market is split, as it is in other cities in the
Ruhr area: poor north and rich south.
Hanover
The amount of completion of residential units in the last 10 years in
Hanover is very low. The consequences are higher price increases and
also an influx into the surrounding areas of Hanover. The average rent
price for first-time occupants has increased from approx. 6.6 €/sqm in
2006 to 9.4 €/sqm in 2016.
Stuttgart
Of the new-build apartments on the market in 2015/2016 only approx. 10% are affordable
for households with an average income. The first residential high-rise building in Stuttgart is
currently being developed in the Europaviertel, while more are in planning .
Heidelberg
The residential property market is intense and in almost all segments there is
excess demand. In the mid-term, the situation should relax due to the construction
of “Bahnstadt” as well as the construction of apartments on conversion areas.
Mainz
The region around Mainz is continuously growing into one market in the
residential sector. The living space situation in Mainz is intense with a vacancy
rate of approx. 1 %. Especially in the more inexpensive segment a lack of
apartments seems to be developing.
Wiesbaden
Two new districts are being
constructed; a further one
is being planned, with
a number of residential
sections in each one. There
are sufficient residential
building areas, but the land
prices are high with a va-
cancy rate of approx. 2%.
BREMEN
HANOVER
ESSEN
DUSSELDORF
COLOGNE
BONN
MAINZ
FRANKFURT/M.
HEIDELBERG
STUTTGART
MÜNSTER
Kiel
Kiel is divided into the expensive western banks – with the city center and University
Campus – and the more inexpensive eastern bank which is close to the city’s indus-
try. It is to be expected that the split of residential locations will grow even further.
HAMBURG
Freiburg
The small amount of new living space developed in the last 10 years was
largely in the upscale segment and has experienced massive price surges.
In order to counteract the lack of apartments – especially in the affordable
segment – the development of new districts will be necessary in future.
FREIBURG
Darmstadt
In the past years, especially multi-storey residential
constructions in the west of Darmstadt were built. The
conversion of former military areas of the US-army opens
up opportunities for residential spaces in prime locations.
DARMSTADT
KIEL
WIESBADEN
Explaining Germany 2017 – Investment
Opportunities in the Residential Sector
Explaining Germany means presenting a multitude of extraordinary facts
that are characteristic of the country, compared to the rest of Europe:
›
Construction activity will accelerate significantly, creating
investment opportunities. Supply across the existing building
stock will remain extremely scarce.
›
Even more stringent regulations in the rental market are expected,
the forthcoming federal election could see housing policy playing
an important role.
›
The phase of fusions and takeovers with residential investors
seems to be calming down – movement can be expected on
the level of property volumes with up to 500 residential units
nevertheless.
›
Looking at the property level, the urge towards serviced
apartments as well as solutions for densifi cation and affordable
housing will further increase. Especially affordable housing will
form a measureable factor on the market this year.
City type
Big 7
Regional Centers
GDP per capita per federal state
Well above average
Above average
Average
Below average
Well below average
German average GDP per capita: 37,853 EUR
Source: Statista 2017
