Thursday, 10 September 2009

Residential Rents in Germany Rising Moderately in 2009

Residential rents in Germany have risen again in 2009 but more moderately than in the previous year. This is the result of a study comparing the official rent tables (Mietspiegel) in Germany performed by the "Hamburger F+B Forschung und Beratung für Wohnen, Immobilien und Umwelt GmbH". During the previous year, the average rent increase for a 65 sqm apartment with average standard and in an average location was 0.8% and 0.6% in 2009. In 1996 the increase for the same sample was almost 4%.

The differences between various regions, however, are significant: In eastern Germany and North Rhine-Westphalia, rent increases are below average, at 0.4% whereas in Baden-Württemberg and Bavaria saw increases at 1.5%, they are more than double the nationwide average. The City of Munich and a few of its suburbs are in the lead by far. In Munich, tenants pay 71% more than the national average for their apartments. Berlin, at the low end of the scale, is a bargain. In the western districts of the capital, the rent level is currently 7% below the German national average; in the eastern part, it is even 12% less.

For investors the latter indicates a significant developmant potential for mid to long term investments. Here is some catching up to be expected.

For support in the identification of the right investment targets please visit the pre acquisition section of 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 .

Uwe Falkenberg


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