Saturday 27 January 2018

The German housing market in 2018

Price and rent outlook for Berlin, Düsseldorf, Frankfurt, Hamburg, Munich and Stuttgart

The following information was provided by Deutsche Bank Research in their Germany Monitor.

Metropolitan areas in Germany are booming. The current real-estate cycle started in 2009 and has led to significant price increases for residential property in many cities. Prices for apartments have as much as doubled in some cities. Strong population and employment growth and declining unemployment rates are driving demand, and supply elasticity is low. New construction is slow to pick up, and vacancy rates are declining. As a result, rent growth is accelerating. Regulatory measures are unlikely to provide sufficient relief. House prices and rents look set to rise markedly in 2018.

Data from a number of cities confirm that demand is high and supply insufficient. In Munich, the vacancy rate is near zero. In Berlin, employment increased by c. 4% in 2017. Frankfurt was already 40,000 residential units short in 2015 – which suggests that 2017’s 15% yoy apartment price increase was not just Brexit-related. Stuttgart’s location in a basin restricts construction activity, contributing to the doubling of apartment prices during the current cycle.
Prices in Hamburg and Düsseldorf have risen strongly as well, even though demand growth has been slower in these two cities than in other metropolitan areas. The local housing-markets might therefore be more sensitive to interest-rate changes than their peers. Still, as our baseline scenario foresees only marginal interest rate increases during 2018, Hamburg and Düsseldorf should experience
price and rent uptrends, too.
Overvaluations are rising, and the risk of a price bubble in the German housing market is increasing. The price uptrend is likely to continue for several years, at least in most major cities in Germany.

The full report is available for download here: >>> The German housing market 2018 - DB Research


Wednesday 24 January 2018

CBRE: Berlin Office MarketView Q4 2017

Berlin Office MarketView Q4 2017


Berlin Office Market
Foto: Uwe Falkenberg

• Year-earlier take-up record exceeded by 4%

• Prime rent at the €30 mark, up 9% y-o-y

• Weighted average rent rises 22% to €19.31/sq m/month

• Vacancy rate declines steadily to 3.1% – full occupancy in central locations

• Only one quarter of office space to be completed in 2018 still free

The full report is available for download at


Tuesday 23 January 2018

Berlin Housing Market Report 2018

The Berlin Housing Market Report has developed into a tool widely accepted in the Berlin Housing Market. Initiated by GSW an originally City-owned but now privatised property company it has experienced a change in sponsorship over the years and is now published by Berlin Hyp and CBRE. The report for 2018 is being published on 25.01.2018 and will be available for download for our clients and readers at the bottom of this page. If you have signed up before, you will receive the newest version automatically.

The report covers these areas:

  • City comparison
  • The city of Berlin
  • Rents, sale prices, investments, transactions and financing
  • Furnished housing
  • New Construction
  • The city: Expert interviews
  • How cities and markets will develop by 2030 – and beyond
  • Housing Cost Atlas: Introduction
  • Housing Cost Map covering the whole of Berlin
  • Berlin's 12 districts and their 190 postcode areas
  • Explanatory notes on the rental map
  • Rental map covering the whole of Berlin
  • Special residential areas


Friday 12 January 2018

What does it say about Berlin? Avison Young releases 2018 North America and Europe commercial real estate forecast.

Change and opportunity will abound in 2018

TORONTO, Jan. 11, 2018 /CNW/ - Rapid change is underway in the world's commercial real estate industry, and the dynamics are in flux as the current investment cycle enters its latter stage. The industry continues to contend with differing property fundamentals across asset types, markets and regions, with occupier behaviour, innovation and technology acting as key sources of change that are taxing the sector. The current interest-rate environment is another contributor to this change – albeit a somewhat limited factor.

These are some of the key trends noted in Avison Young's 2018 North America and Europe Commercial Real Estate Forecast.


German capital remains on its remarkable growth path.


Demand from national and foreign investors for investment product will remain high in 2018. As major assets, such as the Sony Center and the Upper West, were sold in 2017 and availability of product is expected to decrease, investment volumes could fall short in 2018. As in most German markets, investors continued to move up the risk curve in 2017 and showed great interest in value-add product and forward-sale deals. Strong interest and high investment volumes for development land underscore this trend. Accelerated yield compression was recorded between 2015 and 2017 –
especially in the office segment, where Berlin now represents the country’s prime yield. However, prime yields are likely to have reached their low and all signs point to a gradual stabilization at this level.

Avison Young's 2018 North America and Europe Commercial Real Estate Forecast

The Full report is availabel on

For local support in Berlin during all phases of the investment cycle please contact us through our website or directly


Wednesday 10 January 2018

AFIRE Global Ranking for Real Estate Investment: 1. London, 2. New York, 3. Berlin, 4. Los Angeles and 5. Frankfurt

The results of a new survey taken among the members of the Association of Foreign Investors in Real Estate (AFIRE) was recently released.
AFIRE members are among the largest international institutional real estate investors in the world and have an estimated $2 trillion or more in real estate assets under management globally. The 26th annual survey was conducted in the fourth quarter of 2017 by the James A. Graaskamp Center for Real Estate, Wisconsin School of Business. Press Release

Strong Showing for Germany; Emerging Markets Shift

For the first time since the question was first asked, two German cities are included among the top five global cities: Berlin in third place, falling from second last year, and Frankfurt, making this list for the first time.

The top 3 have shifted places, Los Angeles remained on 4th while Frankfurt made top 5 for the first time coming from #13 last year.
1.London (#3 last year)
2.New York (#1 last year)
3.Berlin (#2 last year)
4.Los Angeles (#4 last year)
5.Frankfurt (#13 last year)

Looking at the cost side of property investments in these cities, Berlin is still by far the best bargain as property prices still have not caught up with other major cities.

We support property search and assessment for investments in Germany


Monday 8 January 2018

Eastern Germany Property Market Report and Investment Opportunities

The Berlin Residential Property Market has been on the forefront of the German property boom of the last 2 years and signs are pointing at a continuation of this trend. With increasing rents, purchase prices are rising as well and lately faster than the rent level. See Rent levels in the German Big 7.
As a reaction, investors are looking for alternative locations with similar prospects for the future but lower price levels. One of the obvious choices could be East Germany with a generally still lower price level. But caution is required: Some of the regions have been losing population while others have (re-)gained workplaces and inhabitants.
Research on alternative locations is complex and wrong decisions can be costly. To help your assessments for informed decision making we enclose the link to this report at the bottom of this message.

Through our Network we can provide 3 investment opportunities in this region

1. Multi-tenant home Leipzig with development potential, balconies
04179 Leipzig
asking price € 930k€
642.31 m²
33,807.72€ net rent p.a.
potential for increase
2. Multi-tenant home Leipzig with balconies
04177 Leipzig
asking price € 1,270k
581 m²
38,200.08€ net rent p.a.
potential for increase
3. Multi-tenant home in attractive location in Halle
06110 Halle
asking price € 650k
571 m²
34,619.64€ net rent p.a.
at its current potential

For more information on these properties, please contact me directly


Friday 5 January 2018

Berlin's residential property market has been outperforming since 2006

Press release from: Accentro GmbH

Residential real estate worth 5.64 billion Euros changed hands in Berlin in 2016. This is the upshot of the latest ACCENTRO Homeownership Report. It suggests that revenues from residential property sales in Berlin almost tripled over the past ten years, up from just 1.97 billion Euros in 2006. ACCENTRO assumes that revenues will cross the mark of six billion Euros this coming year.

The ACCENTRO Homeownership Report highlights the brisk outperformance of Berlin’s residential real estate market over the past decade. It is perhaps best illustrated by the surge in the number of completions. While just 363 new-build properties were sold in 2006, the sales total was up to 5,608 properties ten years down the road, more than 15 times as many.

Equally unrivalled by any other German metropolis are the price hikes in Berlin. Between 2006 and 2016, revenues per residential property sold went from 96,141 Euros up to around 250,215 Euros, an increase by 160.26 percent. None of the other cities that were studied showed a comparable price growth.

Declining Number of Transactions, Rising Revenues

The above-average growth in revenue per sale is apparent not just in the ten-year comparison but in the short-term track record as well. Between 2015 and 2016, the growth in revenue per sale equalled 16.73 percent, whereas the 20 biggest German cities averaged a growth rate of merely 8.03 percent. Despite the fast growth over the past years, prices in Berlin remain quite affordable when compared to price levels in other major German cities. The German capital ranks only twelfth in terms of revenue per sale, trailing mid-sized cities like Heidelberg, Mainz or Regensburg.

Lately, however, the number of condominium sales has slowed in Berlin, or so the ACCENTRO Homeownership Report suggests. Specifically, the number of transactions dropped by 7.42 percent between 2015 and 2016. ACCENTRO blames the fact not on a lull in demand, but primarily on short supply. The fact that revenues in 2016 went up by 8.07 percent year on year in spite of the declining number of transactions reflects the persistently keen demand for residential real estate in Berlin.

For local support in the fast-moving Berlin Property Market 

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