Germany's population has been growing more strongly than expected, even before the influx of refugees. Consequently, in the core growth areas in particular, there are now scarcely any apartments available and the low completion figures mean that a continued shortage is certain.
Apartment rents have also risen at an above-average rate in recent years as a result. Asking rents across Germany as a whole have risen by 6.5% since 2012. Cities with more than 500,000 inhabitants have even witnessed double-digit growth in many cases.
In addition to the favourable fundamental data, the German residential market is also characterised by very high liquidity. When low bond yields are added to the equation, residential property therefore remains a sensible cornerstone of portfolios, particularly for risk-averse investors.
Source : Savills