Several media have highlighted lately the positive market trends seen in the German property sector. From Berlin to Munich, and Cologne to Leipzig, the country is experienced a boom across all asset categories. At Get Estate INV, we have seen four key trends develop in the last few years:
Rise and Shine: Property prices have risen steadily in several places, especially cities where families and young people want to live. (Berlin and Frankfort are among the top 10 preferred places.)
Renters and Investors Galore: High rents and property prices are attracting hundreds of thousands of investors and professionals seeking quality of life and taking advantage of the strong German economy and labour market. The ECB’s near-zero interest rates also have been a boon for property investors, as financing options are attractive and fast.
More Housing Projects on the Horizon: Residential property owners have recorded significant profits in the last few years, in part thanks to economies of scale realized in large residential property transactions and the resulting consolidations. Given the surge in profit, low interest rates, and favourable real estate trends, residential property owners are likely to reinvest earnings into new housing projects that will ultimately provide diversity and quality to the overall market.
An Investor-Friendly Market Asking prices and rents have been rising quickly in German metropolises like Berlin, Munich and Frankfort. Again, here the beneficiaries are listed residential property owners, who can then use cheap debt to reinvest and renovate the current supply of assets or construct new ones.