High demand - Germany's top cities
Where do you prefer to live in Germany? In cities such as Munich, Frankfurt am Main or Berlin, the demand for housing is continuing. Instead, there is a glaring mismatch between housing supply and demand. The situation is completely different in structurally weak regions, where the population is shrinking immensely. Real estate investors should keep this in mind.
Most people are drawn to the city
In some parts of Germany, particularly in structurally weak regions, the population is threatening to age particularly quickly. The majority of people of working age emigrate to find jobs in structurally stronger regions. The same counts for young talent. He is also drawn to the large, important cities of the Federal Republic of Germany to study, train and get his first job. As a result, real estate markets in structurally weak areas are stagnating. In some cases, there is even an oversupply of living space and vacancy.
Ways out of misery
Politicians from all parties are constantly addressing this difficult issue of strengthening weak regions. This is done with funding to break the vicious circle of high municipal debt, population emigration and economic decline. But so far, these solutions have hardly shown any far-reaching success. Supermarkets continue to close their doors in structurally weak areas. Entrepreneurs don't even consider these locations for themselves, although they can rent cheaply. The locational disadvantages prevail. Parts of the Ruhr region are a concrete example of the failure of numerous structural-promoting measures: This once very strong region of Germany was based on coal. With the end of hard coal came structural change, which was unable to absorb the countless jobs lost — often not to this day. The same applies to the development of East German cities after the fall of the Wall. The promised blooming landscapes did not blossom to the extent expected. And so there seems to be no promising recipe that enables a way out of this unequal development in Germany. Instead, the situation is getting worse.
Despite high rental and purchase prices
Hardly a day goes by without the high rental and purchase prices for real estate being discussed in the German press. If you listen carefully, you will quickly discover that it is mostly about the seven major cities in Germany: Berlin, Düsseldorf, Frankfurt am Main, Hamburg, Cologne, Munich and Stuttgart. People have been drawn to these big cities for many years, which is causing the demand for housing to rise rapidly. Despite high rental and purchase prices, demand is not slowing down. Why The range of jobs is diversified and large, the infrastructure is excellent and the quality of life is high. In addition, incomes are often at an above-average level, which can cushion some of the additional costs.
Consequences of Germany's regional differences for investors
Experienced investors who want to combine attractive returns with maximum security focus on real estate investments in Germany's top cities. While other German cities are weak candidates in terms of positive real estate market development, the seven A-cities are considered safe havens for a small or large investment volume. Demand for housing there will be no decrease in the short or long term. On the one hand, this prevents rent losses and, on the other hand, ensures stable returns. Anyone looking for a smart combination of minimizing risk and increasing the value of a real estate investment will find what they are looking for in the top cities in the Federal Republic of Germany.
