Investment locations Germany 2021 Residential – rents and yields The regional residential real estate markets can be analysed based on two trends over the past year: On the one hand, further rising prices and the newly discovered opportunities for remote working are leading to a slowdown in the influx into the swarm cities and consequently to an easing of the rental price trend in the city centers. On the other hand, rising investor demand for the "safe asset class of housing" is causing further yield compressions and persistently high purchase prices on the market. There are no signs of a trend reversal. Kiel 9.20 11.80 3.70 Rostock 9.00 12.40 4.00 Lübeck 8.40 12.90 4.10 Schwerin 7.60 Hamburg 10.50 12.30 Lüneburg 4.30 17.70 2.60 9.10 11.70 Oldenburg 4.20 8.80 11.20 Bremen 3.50 9.10 12.10 4.10 10.50 17.00 2.30 9.60 9.20 Berlin 13.60 12.20 8.30 3.40 4.20 11.90 Wolfsburg Potsdam 4.30 Hannover Osnabrück 10.40 Reckling- Braunschweig hausen 13.60 10.60 8.20 Hildesheim 2.90 7.10 10.50 8.80 13.10 7.20 12.40 Magdeburg 8.70 3.10 4.20 5.60 10.10 3.80 6.80 Münster Bielefeld 5.00 9.10 Herne 8.00 6.80 7.50 Detmold 4.20 11.30 6.30 9.40 8.40 8.00 Gütersloh 5.80 Cottbus 4.80 4.30 5.60 6.40 7.90 Paderborn 9.80 Oberhausen 8.80 9.30 12.40 6.80 7.10 5.60 8.10 Göttingen 4.60 8.50 4.40 9.90 5.90 6.60 10.00 4.80 4.40 8.80 Hamm 8.10 5.00 Bochum Dortmund 11.50 7.60 7.60 Duisburg 4.30 10.20 10.30 Essen 6.80 Ratingen 4.30 Leipzig 5.00 Krefeld Wuppertal 10.10 5.00 Kassel 7.60 Remscheid 11.20 Düsseldorf Mönchen- Düsseldorf 6.80 3.10 gladbach Solingen 8.60 Dresden 11.40 Erkrath 7.80 4.80 9,75 9.20 15.80 Neuss Leverkusen Weimar 8.20 2.70 14,65 5.00 11.70 4,10 Erfurt Cologne 8.00 Siegen Jena 3.30 Ratingen 9.60 9.10 7.60 7.60 12.10 4.40 13.80 15.50 8.40 11.20 10.50 9.60 9.40 Aachen 4.00 10.10 8.10 4.20 4.30 12.20 12.00 3.00 9.20 10.80 9.30 Bonn 5.30 3.70 4.30 12.40 11.90 4.00 3.50 10.50 3.80 Fulda Neuss 13.20 Gießen Average rental prices and gross rent yields 3.60 7.40 8.90 8.80 9.60 10.60 10.90 4.30 4.20 Hanau 4.00 Koblenz 13.80 Coburg 8.40 18.50 10.00 10.80 2.90 8.90 mid-range residential area in €/sq m * 10.20 15.20 13.40 4.30 Frankfu rt/M. 3.60 9.30 11.5 0 very good residential area in €/sq m * 3.30 1) Oenbach/M. 11.70 gross rent yield in % Wiesbaden 3.80 4.30 Aschaenburg Mainz Bamberg Darmstadt 9.60 11.40 10.30 12.10 14.40 3.90 3.40 13.30 Würzburg 10.50 Trier 3.50 14.70 10.00 3.40 * €/sq m living area calculated monthly, 9.90 10.50 7.80 12.80 12.50 14.70 3.20 Erlangen applicable to approx. 3 rooms. approx. 4.10 9.20 3.50 5.30 Fürth Mannheim 65–80 sq m. all years of construction Kaiserslautern 9.40 Nürnberg Ludwigshafen Heidelberg 11.80 10.10 1) 8.40 8.10 3.70 13.60 Gross rent yield for existing apartments 11.00 10.30 11.90 3.30 Saarbrücken 4.50 16.30 in a very good location: 3.50 3.00 Heilbronn 10.00 Regensburg Gross rent yield is the ratio of annual 12.70 Karlsruhe 3.70 11.00 11.00 13.70 rental income to the buying price. 10.30 13.30 3.10 13.40 3.00 Net rent yield, on the other hand, also 3.30 Stuttgart Ingolstadt takes into account the additional costs 14.40 associated with buying such as the ad- 18.70 2.90 10.40 ministrative and maintenance costs, which 12.60 3.10 the owner cannot pass on to the tenant Augsburg as they can other operating costs. 17.20 26.80 2.00 11.80 Munich 15.30 2.90 Freiburg Change in rents 1st quarter 2020 1st quarter 2021 Change ø rental price mid-range residential area Germany 8.97 9.17 2.22% ø rental price mid-range residential area top 7 locations 13.09 13.09 -0.02% ø rental price mid-range residential area excl. top 7 locations 8.58 8.80 2.54% ø rental price very good residential area Germany 11.54 12.16 5.34% As of: 1st quarter 2021 ø rental price very good residential area top 7 locations 17.91 18.56 3.63% Contact: [email protected] ø rental price very good residential area excl. top 7 locations 10.94 11.64 6.43% Source: Catella Research 2021 Yield-risk-profile for residential markets in 2021 Investment universe Gross rent yield in % Gross rent yield in % 6.00% 6.00% Detmold Hamm Cut out Recklinghausen 5.50% Herne Cottbus 5.50% Kaiserslautern Siegen 5.00% Solingen Hildesheim 5.00% Oberhausen Duisburg Remscheid Krefeld 4.50% Bochum Schwerin Dortmund Gütersloh Göttingen Leverkusen Saarbrücken Weimar Osnabrück Paderborn Essen Coburg 4.00% 4.50% Bielefeld Koblenz Mönchengladbach Lüneburg Kassel Erfurt Ratingen Wolfsburg Lübeck Magdeburg Hanau Bremen Trier 3.50% Gießen Neuss 4.00% Erkrath Fulda Rostock Braunschweig Aschaenburg Bamberg Kiel Fürth Heilbronn Jena 3.00% Hannover Bonn Oenbach am Main Darmstadt Aachen 3.50% Oldenburg Erlangen Mainz Mannheim Nürnberg Ludwigshafen am Rhein 2.50% Regensburg Karlsruhe Wiesbaden Würzburg Münster Dresden Cologne Leipzig 3.00% Stuttgart Augsburg Heidelberg 2.00% Frankfurt am Main Ingolstadt 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 Potsdam Freiburg im Breisgau Düsseldorf Hamburg Risk factor* 2.50% Berlin Munich 2.00% 10.00 15.00 20.00 25.00 30.00 35.00 * Risk factor based on Catella Research Residential Market Ranking Germany 2021. In order to classify the rankings, the risk factors have been divided into the following indicators: Risk factor* 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 Residential market top 7 locations onto a numeric scale between 0 and 100. In order to determine the risk factors, the scoring Top 25 locations according to overall score in the residential market rankings values are transformed using an inverse function Remaining 49 locations according to overall score performance in the residential market rankings Source: Catella Research 2021.