According to an analysis by the real estate service provider Savillis, investments in multi-family houses in Germany are very popular among European capital investors. In the first quarter of this year, about 70 percent of the European transaction volume in investments in multi-family houses fell in Germany. In the study of Savillis 12 markets were examined. Thus, Germany leads the ranking of investment activity in multi-family houses, in second place is the United Kingdom with 8 percent market share, followed by Sweden with 6 percent.
According to Savillis forecasts, investment demand is expected to remain stable to higher. Despite the impact of the COVID 19 pandemic, the housing market in Germany remains stable. The reasons for this are the fairly high yield stability and the prospect of constant to rising yields. The rental housing market in Germany meets many of the requirements of international investors with regard to changes in the real estate market. From the demand for smaller households and the trend toward urbanization to the rising demand for greater flexibility and tailored services, rental apartments have good fundamentals in the European rental housing market.
Residential real estate also represents a good form of investment for lenders due to secure rental income. According to the experts at Savillis, it can be assumed that less populated locations with a good infrastructure will also increasingly come into focus in the future. Thus, it can be assumed that the rental housing market in Germany will continue to represent the largest investment market in Europe in the future.
Source: Savillis
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