Market Conditions

Regional and local housing markets in Germany are heterogeneous. Strong demographic changes result in a massive decline of population and demand in many regions. A stable or even increasing excess demand is characteristic in other, especially metropolitan areas.

Apart from that, demands raised by tenants are permanently increasing regarding building conditions and equipment while the product requirements cannot always keep up with the economic capabilities. In addition, the competitive pressure increases along with the structural weakness of a region.

Only housing providers who assess market forces correctly and who use their resources for the most effective economical measures will have long-term success.

Thus, the knowledge of local market structures is the key to success.

Investment Objectives

The housing market in Germany has considerable potential for national and international investors. Even sophisticated expected returns can be met. However, the investment risks must be recognized appropriately and require adequate tools to master them.

The supposedly safe acquisition of core properties can involve significant risks and, in contrast, investments in minor locations can be extremely profitable.

We provide comprehensive and reliable market and portfolio analyses and a thereof derived risk-return profile that is closely linked to the local housing market. With this knowledge, investment decisions can be made that ensure the achievement of the projected investment objectives.

Energy Efficiency

A major economic burden for real estate companies will be constituted by legal requirements, technically more demanding from year to year, as well as requirements of the building structure and the quality of energy saving restructuring demanded by the market and competition. At first glance the necessarily increased application of funds appears to be a serious disadvantage, which investors have to accept when investing in German residential real estate.

Taking a closer look, however, shows that there is a number of positive effects that lead to a significantly improved net income and increased net value:

  • additional potentials to increase the rent arise, which are enforceable in the market
  • expenses for operating costs and ongoing maintenance will be permanently limited
  • structural vacancy can be sustainably reduced

A clever allocation of funds, such as sustained investments in energy efficiency can be equally attractive for both owners and tenants and create a win-win situation.