Residential Dashboard
Key Takeaways
- In 2023, the German residential market was negatively impacted not only by macroeconomic uncertainties and polycrisis-like effects, but also by more difficult and more expensive debt financing conditions.
- German residential construction is in a deep crisis due to this mixed situation. A significant decline in building permits to around 260,000 flats is expected for 2023. For 2024, our calculations indicate a decline to just 200,000 flats.
- Due to the decline in building permits, building completions are also falling, with a slight time lag. Only a good 200,000 completed flats are expected for 2024 and well under 200,000 completed flats for the years thereafter. The new construction gap is therefore likely to widen significantly in the coming years.
- The recent sharp decline in the vacancy rate in Germany already reflects the significantly tighter relationship between supply and demand and suggests that rental price growth will accelerate in the coming months and years.
- For the first time in many years, price momentum in the rental market is significantly higher than in the condominium market. Rental growth potential is also foreseeable for the coming months. Due to the stability of cash flows, investments in flats are still regarded as very solid assets.
State of data: 31.03.2024
Residential rental & purchase price navigator
The residential markets of the most popular metropolises in Germany have been dominated by rising rental and purchase prices for years. But what is the situation in the rest of the country? BNPPRE investigated this question and analyzed all 108 independent cities in Germany.
With the BNPPRE Residential Navigator, which is updated every six months, you can make further progress through the numerous residential markets and keep an eye on rental and purchase price developments (for condominiums) in the new builds and existing stock as well as other key figures.
The dynamically selected axis scaling and the digital format illustrate the large price differences between the independent cities in the different size categories from Zweibrücken (around 34,000 inhabitants) to Berlin (around 3.7 million inhabitants).
State of data: 31.12.2023
KEY FIGURES AND ANALYSES
ON THE GERMAN REAL ESTATE MARKET
Find out more about the latest developments in the investment, office, logistics, retail, hotel, healthcare and residential real estate markets to base your property decisions on a strong foundation of solid market information. We are happy to provide you with an extensive overview of property-related developments throughout Germany and details of the real estate markets of the largest German cities.