How the market has changed since 2008 in Germany

The economic situation improved after the crisis of
2008/2009, in general lower unemployment rates and growing consumer confidence
can be noticed.
Nevertheless rents only increased slightly, even below inflation, thus
it is expected to see moderate rent increases in the future, in metropolitan areas
at the strongest.
Regional differences remain strong, especially eastern German cities
show economic and demographic deficits.
Although the volume of residential completions increased in the last
years, the general level, particularly in multi family houses, remains
Low volatility of residential yields remains constant.
Forecast for the German Residential Market Part 1
Moderate rise in rents in new and existing buildings due to positive
economic cycle, especially in large cities.
Increasing apartment prices, especially in good locations, due to
shortage of supply.
Convenient construction financing and the current discussion on inflation
resulted in an increased demand for owner occupied dwellings during past years; the rise of purchasing prices for owner
occupied dwellings will continue, above of all in A cities.
Still low level of building activity.
Probably negative effect on purchasing behaviour due to adjustment of interest rates
Forecast for the German Residential Market Part 2
Divergent development of high end projects and standard sites
Huge disparity between rural areas and metropolitan areas will
increase with regard to rent levels and demand.
The „back to the city trend determines affordable living space, in order to allow a wide social structure.
Reduction of the size of households vs. increasing living space

Author: arunadevi

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