Published on 19/09/2008

Compared to the rest of Europe, the German property market has become a more attractive investment market. For the first time in four years Hamburg, Munich, Frankfurt and Berlin are now included in the list of top ten European locations.

In an international comparison, the financial crisis has had no major impact on the German economy. Although there has been a noticeable decline in the property investment market, Germany as well as international investors continue to invest in the German property market.

An improvement can be expected, particularly in the area of commercial office space. Moreover there is a strong demand for private properties in top quality locations.

Nevertheless, investments in the German housing industry are on the decline. More and more bureaucratic regulations and administrative barriers challenge the profitability of investments in the housing market.

There exists a shortage of supply of affordable rented flats in most of the flourishing economic regions and the number of building permissions have reached a record low, leading us to presume that the property market will not remain undamaged by an international declining market.

Christine Füssel and Stephan Schmacks,
Wuppertal, Germany
cfuessel@rinke-gruppe.de
sschmacks@rinke-gruppe.de