Real estate in Germany and Europe - main trends

Every year, real property in Germany has become an increasingly attractive investment field, not only for Germans themselves but also for non-residents. This is understandable: for years now, the German real estate market has traditionally been considered the safest and most favourable in Europe.

According to the DZ Bank experts ' projection, Germany ' s real estate in 2016 will hold high positions: in the major cities such as Hamburg, Berlin, Cologne, Dusseldorf, Frankfurt, Stuttgart and Munich, the commercial real estate segment shows good results. This is due to the sustainability of the economy and the steady gradual rise in the personal income of the population, which in turn leads to increased rent. In particular, this trend is visible in German real estate segments such as office, trade and housing.

Comparing the commercial real estate market in Germany and the pan-European market, it can be said that German megapolis show a marked improvement in the average. Moreover, while in 2009 German real estate accounted for about 20 per cent of investments in the five largest European markets (also including Britain, France, Italy and Spain), this share increased to 30 per cent in 2013. And since the acquisition of real property in Germany continues to be a profitable investment in both local and foreign investors, the experts believe that Germany ' s future role as the economic locomotive of Europe will only be strengthened. Moreover, most professionals believe that the German market for commercial real property will be back to the end of the previous year. On the other hand, many economists have also predicted a slowdown in the growth of average rents across the country.

It is because of the combination of these two factors that most investors prefer to invest in the most secure real estate, albeit with less income. These include primary-market items that do not require additional financial bonds; the premises should be leased and long-term contracts.