Buying real estate: profitable locations

Langenhagen, 15 May 2019  |  News

With the “Residential Atlas 2019”, the German Postbank publishes its forecasts for the development of purchase prices of German residential real estate. Not only major cities will experience strong increases in value.

Postbank has published the “Residential Atlas 2019”. Under the direction of the Hamburg Institute of International Economics, the Germany-wide development of purchase prices was examined until 2030. In order to calculate in which regions real estate prices are particularly strong or stable, data from 401 cities and municipalities was collected. The results are based on an analysis of supply and demand trends, the demographic structure, development of incomes and household sizes, housing costs and vacancy rates.

Prices are increasing – even in rural areas

The key finding: With a constantly growing population and a positive economic and income development in the catchment areas of major cities, the demand for housing is increasing, which means that prices are also growing. Accordingly, strong price increases are no longer expected only in large cities. This phenomenon is recognised, for example, in the Greater Berlin area: by 2030, the average price increase per year in the northern district of Oberhavel even exceeds the price growth of the capital. Potsdam also receives good forecasts for a price increase, as it can benefit from the economic development of the conurbation with its location in Berlin’s commuter belt.

This does not mean however, that real estate investments in structurally weaker regions will not pay off as the population grows. The “Residential Atlas” stresses that a negative price forecast does not apply to every property. Crucial is the exact location and features of an object. By this, a purchase in these regions can still provide financial security and represent an essential component in the personal life planning.

Further growth is expected in big cities

Also, there was no trend reversal in Germany’s largest cities. In addition to the demographic and economic price drivers, the still prevailing demand surplus will continue to drive prices higher. Investors from Germany and abroad are increasingly interested in apartments in popular locations, so that individual properties in coveted neighborhoods are offered at significantly higher prices. Here the “Residential Atlas” recommends to hire an expert to search and valuate real estate.

Langenhagen, 15 May 2019  |  News
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