Investment locations Germany 2019 Residential – rents and yields The situation on the German housing markets is a reflection of social changes and economic consequences. All in all, a high center-focused and demand-based development can be seen, while at the same time the heterogeneity of supply is increasing. Urbanity and the desire to live in cities result in a different price ratio. The scarcity of supply is increasingly being countered by means of post-consolidation measures and neighbourhood development. The view outside the conurbations is different: less the lack of building land than emigration shapes these housing markets.
Kiel 7.85 10.50 4.40 Rostock 7.13 10.56 4.50 Lübeck 8.01 10.21 4.60 Schwerin 7.09 Hamburg 8.58 12.00 Lüneburg 5.50 16.29 2.70 8.99 11.05 Oldenburg 4.30 8.08 10.16 Bremen 4.30 9.06 11.66 4.70 10.13 17.00 2.40
8.67 8.52 Berlin 11.31 11.23 7.76 4.10 4.90 9.76 Hanover Wolfsburg Potsdam 4.90 Osnabrück Reckling- 9.84 Braunschweig 12.16 hausen Hildesheim 10.07 7.02 3.80 5.79 9.14 7.90 12.72 6.40 10.21 Magdeburg 7.42 3.80 4.50 6.20 8.20 4.90 5.97 Bielefeld 5.30 Herne Münster 7.77 6.95 Detmold 6.23 5.30 6.03 6.08 7.91 7.77 10.75 Gütersloh Cottbus 4.70 7.27 6.00 5.60 7.00 6.34 Paderborn 8.73 7.26 6.04 Oberhausen 7.70 8.92 11.10 6.46 6.00 7.43 Göttingen 4.90 7.49 5.00 9.39 6.80 5.97 8.73 5.30 4.90 8.18 Hamm 7.19 5.70 Bochum Dortmund 9.74 7.74 6.84 Duisburg 4.70 9.43 8.74 Essen 6.37 Ratingen 5.00 Leipzig 5.30 Krefeld Wuppertal 8.11 5.30 Kassel 7.37 Remscheid Mönchen- 10.49 Dusseldorf Dusseldorf 6.05 3.60 gladbach Solingen 7.23 Dresden 11.27 6.67 6.50 7.10 8.18 16.16 Neuss Leverkusen Weimar 7.82 3.20 12.85 5.70 10.43 4.20 Erfurt Cologne 7.53 Siegen Jena 3.60 Ratingen 9.34 8.10 7.31 11.26 5.00 14.44 6.94 9.90 8.73 8.49 8.57 Aachen 9.45 7.75 4.90 4.80 10.62 3.40 8.93 10.25 10.42 8.77 Bonn 6.00 4.40 5.00 14.50 10.70 5.00 4.00 9.70 5.00 Fulda Neuss 12.25 Gießen 4.00 7.29 7.94 8.53 8.98 Average rental prices and gross rent yields 9.54 10.42 5.00 4.90 Hanau 4.90 Koblenz 13.95 Coburg * 7.95 18.30 9.70 9.89 3.30 8.53 mid-range residential area in €/sq m 10.38 12.14 12.36 * 4.80 3.90 Frankfurt/M. 3.70 9.01 11.08 very good residential area in €/sq m Wiesbaden Offenbach/M. 10.58 1) 4.20 4.59 gross rent yield in % Aschaffenburg Mainz Bamberg Darmstadt 8.63 10.67 10.15 10.83 13.76 4.50 4.30 12.47 Würzburg 10.23 Trier 4.40 13.89 10.18 3.70 * €/sq m living area calculated monthly, 8.76 9.34 6.84 12.60 11.40 12.03 4.10 Erlangen 5.00 8.92 4.20 applicable to approx. 3 rooms, 5.90 Fürth Mannheim Nuremberg approx. 65–80 sq m, all years of Kaiserslautern 9.05 Ludwigshafen Heidelberg 10.47 9.46 construction 4.20 6.96 8.20 12.31 1) 9.11 10.45 10.90 3.70 Gross rent yield: Saarbrücken 5.20 14.70 5.00 3.80 Heilbronn Gross rent yield is the ratio of annual 9.64 Regensburg rental income to the buying price. Net Karlsruhe 12.15 4.80 10.33 10.93 13.34 rent yield, on the other hand, also takes 9.86 13.08 3.50 12.75 3.70 into account the additional costs associated 4.10 Stuttgart Ingolstadt with buying such as the administrative 12.52 16.02 and maintenance costs, which the owner 3.00 9.87 12.63 3.80 cannot pass on to the tenant as they can Augsburg other operating costs. 16.90 22.97 2.70 11.24 Munich 14.64 3.60 Freiburg in €/sq m 1st quarter 2018 1st quarter 2019 Change
ø rental price mid-range residential area Germany 8.27 8.53 3.16% ø rental price mid-range residential area top 7 locations 12.13 12.58 3.68% ø rental price mid-range residential area excl. top 7 locations 7.90 8.14 3.08% ø rental price very good residential area Germany 10.76 11.08 2.97% As of: 1st quarter 2019 ø rental price very good residential area top 7 locations 16.32 17.31 6.08% Contact: [email protected] ø rental price very good residential area excl. top 7 locations 10.23 10.48 2.46% Source: Catella Research 2019 Yield-risk-profile for residential markets in 2019 Investment universe
Gross rent yield in % Gross rent yield in % 7.0% Herne 7 Cottbus 6,5 Remscheid Section overview Siegen 6.0% Detmold 6 Recklinghausen Hamm Solingen Oberhausen 5.0% 6.0% 5 6,0 Kaiserslautern
4.0% 4 Duisburg
Frankfurt Cologne Dusseldorf 5.5% 3.0% 3 Stuttgart Munich 5,5 Schwerin Hamburg Berlin Wuppertal Bochum Hildesheim Krefeld 2.0% 2 Magdeburg 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 Kassel Ludwigshafen Saarbrücken Risikofaktor 5.0% Gießen Fulda Gütersloh Leverkusen Ratingen Coburg Hanau Paderborn 5,0 Trier Braunschweig Neuss Göttingen Residential market top 7 locations Erfurt Wolfsburg Osnabrück Weimar Top 25 locations according to overall score in the residential market rankings Heilbronn Koblenz Bremen Essen Remaining 48 locations according to overall score performance Dortmund Lübeck in the residential market rankings 4.5% Aschaffenburg 4,5 Bielefeld Rostock Darmstadt Kiel Jena Mainz Lüneburg Oldenburg Mönchengladbach Fürth Mannheim Bamberg Karlsruhe Würzburg 4.0% Hanover Aachen 4,0 Bonn Wiesbaden Heidelberg Potsdam Augsburg Nuremberg Münster Offenbach Ingolstadt Erlangen Dresden Freiburg Leipzig 3,5 Regensburg 1010 1515 2020 2525 3030 3535 risk factor Risk factor based on Catella Research Residential Market Ranking Germany 2018. In order to classify the rankings, the risk factors have been divided into the following indicators: socioeconomic data, structural risk, liquidity risk and location potential. The factors have been organised into quantiles according to the respective value of the percentage range and projected onto a numeric scale Source: Catella Research 2019 between 0 and 100. In order to determine the risk factors, the scoring values are transformed using an inverse function.