Wednesday, 5 August 2009

Residential Market: Lowest number of new built apartments in Germany since 1990

New construction of residential units is still declining in Germany. It is at the lowest level since the reunification 1990. This is a phenomenon across Europe and is not likely to change at the short term due to the difficulties financing new projects.

Despite decreasing unemployment, economic recovery and moderate interest rates in 2008 there were only 152.000 new units built in Germany. There are regional differences as pointed out by the Munich based ifo Institute and in most regions there are no shortages to be expected, but attractive locations with influx through new jobs this development might cause shortages in the rental market.

An analysis of the regions can help to identify investment targets in the German residential market with potential for rent increases supported by the still robust state of the German economy (see other recent posts in this blog).

For support in the identification of the right investment targets please visit our website at www.berlin-portfolio.com. Especially for international Private Investors and Property Funds we provide a task force service for quick reaction to interesting opportunities.

We provide independent support for the property search including foreclosure or auction properties and their valuation or appraisal. (Also see our free property market Research Service)

Please use this link to the contact facilities provided there to place any requests .


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