Brexit Factor

Getting in on the Boom before it Busts

Farbig präsentiert sich am 03.09.2014 die Innenstadt von Berlin beim Übergang vom Tag zum Abend. Foto: Paul Zinken/dpa +++(c) dpa - Bildfunk+++
Berlin's property market is heating up. Could it be overheating?
  • Why it matters

    Why it matters

    In big cities like Berlin, Munich or Frankfurt, high prices mean it is hardly possible to achieve returns, which mostly are between 2 and 3 percent.

  • Facts


    • In the latest survey of German real estate firms, 95 percent rated the apartment sector as “good.”
    • The number who believe future market conditions will be more favorable is falling, the survey showed.
    • Most real estate professionals expect international investors to show increasing interest in the German housing market as a consequence of the Brexit vote.
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The German real estate market is hot, whether for hotels, retail warehouses or parking garages. Big investors in particular are putting their money into any piece of property that still offers returns, even if only partly promising.

Anyone who can get a piece of multi-family apartment blocks in cities like Berlin, Munich, Frankfurt or Hamburg has particular cause to rejoice, because competition is this segment is extremely intense. Investors are making a grab for uncomplicated properties, even if returns are declining.

The current climate of the German real estate industry continues to be excellent, said Michael Voigtländer, head of financial and real estate markets at the Cologne Institute for Economic Research (IW).

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