Germany 2017 - page 9

9 INFOGRAPHIC
Berlin
The residential vacancy rate is currently at approx. 2%, in the
city center under 1%. In the past years not enough residential
space was built in relation to the population growth. Until
2020 every year 20,000 new apartments would have to be
completed to satisfy the demand. In accordance with this, the
rent prices have risen by 30% between 2010 and 2016.
Dresden
The demand for construction is high
and renovations and constructions
have been undertaken for the more
prestigious property owners. The num-
ber of available apartments has
stagnated for a long time, only since
2014 is has sunk through increasing
level of new-builds.
Frankfurt
The target group of project developments are the so called “global
knowledge nomads” and not the local population on average income.
The pressure to move into the cheaper surrounding areas has been
large for years and has further intensified in the recent years.
Hamburg
Only approx. 5% of the new-build apartments are affordable for the average household in
Hamburg. From 2007 until 2012 there was a rent increase (for first-time occupancy) above the
German average of 37%, which led to more people moving to the surrounding areas.
Leipzig
The city has the highest housing stock in relation to
the number of households in Eastern Germany. In 2015
however, rent prices exploded. The locational advantage
existing so far (a large city with enough affordable living
space) seems to be in danger.
Magdeburg
The increase of population in the coming years has
led to a reduction of vacancy rates. In the upper-class
residential segment with waterfront locations beside
the Elbe there is a lot of building activity with projects
and prices comparable to Leipzig or Dresden.
Munich
Until 2030 the city will have a demand for 152,000 new apartments.
Next to the possible construction of skyscrapers there are only two large
new-build areas: in the north-eastern part of the city, east of the S-Bahn
route and in Freiham.
Nuremberg
Rent prices have increased in the last 10 years by 33%. By 2030 there
will be a demand of approx. 23,000 residential units. As a result of this, a
regional residential market between Nuremberg, Erlangen and Fürth will
develop.
Erfurt
Currently all building activity is almost exclusively for affluent inhabitants, for
example for owner-occupied flats either in the center or in the outskirts. The
city is planning 4 ,000 new, affordable rental apartments for the next five years.
NUREMBERG
ERFURT
LEIPZIG
MAGDEBURG
BERLIN
LÜBECK Wolfsburg
Thanks to the project of the city
to build 6,000 new residential
units by 2020, the idea of “in-
ner-city living” is being enforced.
The current residential projects
make this possible and
consequently a good
infrastructure is
developing.
Potsdam
Potsdam’s residential market is the most dynamic in East
Germany and split between an expensive north and city
center and a less expensive south. There is a lack of apart-
ments, even though there is a lot of building activity. The
housings tock increased from 2008 to 2014 by almost 5%.
POTSDAM
Jena
Jena is on a growth course: in the past years (2008-
2015), 5% more people have moved to the city. In
the past 10 years, the rent prices have increased by
25 %. Meanwhile the rental price brake has taken
form and social housing is a much discussed topic.
MUNICH
Ingolstadt
There is a steady boost in rent price levels. An even stronger increase
was prevented by the fact that there were many investments into living
space from public and private investors. It’s questionable if this trend can
be continued in future, due to the increasing lack of available land.
INGOLSTADT
Lübeck
The residential construction is only slightly expanding, but the large number of planning
permissions granted in recent months can lead to a revitalization of building activities. Water-
front apartments are particularly in demand. In the coming year, an increase of rent prices by
approx. 2 or 3% is expected.
DRESDEN
JENA
WOLFSBURG
Source: Catella Research 2017; As of February 2017; Contact: research@catella.de
2004–2010 2011–2016
TOP 7:
Growth rate of residental net rents –
existing stock, 60-80 SQM (in %)
25
20
15
10
5
0
Berlin
Cologne
DusseldorfFrankfurtHamburgMunich Stuttgart
TOP 10:
Residential transaction volumes by
federal state in 2016 – single and portfolio
transactions above € 5 Million (in mnEUR)
Source: Catella Research, RCA
Berlin
North Rhine-Westphalia
Hesse
Hamburg
SaxonyBavaria
Saxony-AnhaltBrandenburg
Baden-
Württemberg
Rhineland-Palatinate
1,500
1,000
500
0
2,000
2,500
Germany
Former Federal Republic
Eastern states and Berlin
Building completion by units
(in thousands)
350
300
250
200
150
100
50
0
2000200120022003200420052006200720082009201020112012201320142015
400
Source: Destatis