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DZ HYP publishes new research report on the German residential real estate market

30.09.2024

  • Dynamic rent increases for new contracts and first occupancies
  • Demographic trends creating more and more tension on the market
  • Good investment opportunities with moderate potential for value increases

Earlier today, DZ HYP published its new research report “The German Residential Real Estate Market 2024 | 2025”. This is the Bank’s first in-depth analysis of the opportunities and challenges associated with a particularly relevant asset class. The report looks at current market developments for residential real estate and provides an outlook for the segment from an investor’s perspective. Specifically, DZ HYP examines underlying factors such as demographic trends and the current status of new construction and refurbishment in the sector. This is followed by an analysis of Germany’s seven largest cities and twelve key regional centres. 

The research shows an increasingly tight housing market, where rising demand and stagnating new construction activity combine to drive rental prices across the various locations. At the same time, this scenario offers good investment opportunities, as DZ HYP CEO Sabine Barthauer explains: “The residential investment market is showing clear signs of recovery. The price correction phase appears to be over. Now that the ECB has begun to cut interest rates, investors will have greater planning certainty. Prices for multi-family homes remain high despite the decline in valuations over the past two years, which makes rental yields even more important for investors.”

Continue to full press release

 

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