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Particularly in Germany’s major cities the demand for housing continues to increase dynamically. This is due to the contrasting demographic trend in subregions of Germany according to a study by the Bundesinstituts für Bau-, Stadt- und Raumforschung (BBSR) from July 2015, which analysed data from ongoing spatial monitoring on regional immigration and emigration movements.

Many investors see residential properties, particularly in the major German cities, as a safe and comparatively profitable investment. The current lack of alternative investment opportunities created by the ongoing low interest rate policy of the European Central Bank is additionally reinforcing the trend for real estate investments.

The German housing market is characterized by an extremely high demand for investment properties. In the first half of 2015, residential properties worth a total volume of 17.5 billion euros were traded across Germany according to the consulting and research firm JLL.

Where housing is scarce, rents are rising. According to calculations of the real estate association IVD, the nationwide average rent for a standard apartment in an average was 5.78 euros per m² net cold in 2014. Compared to 2013, this corresponds to an increase of 2.1%.