Housing Market Report Germany 2016

Transcription

Housing Market
Report Germany
2016
Dear Sir/Madam,
The first Vonovia market report in conjunction with CBRE
aims to give you a precise overview of the property market in
Germany by analysing 29 of the largest cities and their housing
markets in detail. In addition to the internationally renowned
top seven cities, the report also presents some of the growth
markets that will be of interest to investors in previously less
intensively researched major cities in Germany.
The report also tackles current issues in politics and society
concerning demographic changes and the increasing migration into cities as well as the almost comprehensive shortfalls
in new housing construction. The only moderately perceptible
effects of the Mietpreisbremse (capping of rents on re-letting)
and the strong influx of refugees will be additional core themes
for the residential sector in 2016.
We are convinced that sound market knowledge is indispensable for making financially sustainable investment decisions.
That is why the report is based not only on extensive quanti
tative analysis of current market data and socio-economic
conditions, but also on a representation of local peculiarities
and, in some cases, unique trends in the respective markets.
A summary overview of the attractiveness and potential for
development in the various cities demonstrates fundamental
differences between the markets. The following 29 detailed city
profiles are imbued with our specific knowledge of submarkets,
economic structures, cultural features and guiding principles in
the residential sector. Numerous graphics and maps illustrate
vivid trends and structures. The report concludes with an
outlook on the key developments for the residential property
market over the coming years, such as the announced tenancy
law amendments.
We hope you enjoy reading the report.
Rolf Buch
Dr. Henrik Baumunk
CEO
Managing Director
Vonovia SE
CBRE GmbH
001
Rolf Buch
Dr. Henrik Baumunk
CO N T E N TS
Contents
[004]
Introducing the project partners:
Vonovia and CBRE
For the first time, Vonovia and CBRE present a joint
housing market report on 29 selected cities in Germany.
A brief look at the project partners.
[006]
The German residential property
market in the political and public
spotlight
At the beginning of 2016, the German residential property
market was dominated by high levels of migration into
(major) cities, the adaptation of legal frameworks and
the large influx of refugees. All of these factors pose
new challenges to local housing markets.
[008]
City comparison: An extensive
overview of the 29 markets in
Germany
Analysis of similar characteristics of the 29 cities
studied and classification of the property markets
into five groups respective of their socio-economic
and housing-market-specific features.
002
CO N T E N TS
[016]
[196]
City profiles: Detailed analysis
of the 29 cities
The German residential property
market going forward
The 29 cities in the spotlight. Extensive analysis of current
trends and developments in the cities with regard to demographics, socio-economics and the local housing market.
What is the current state of the German residential
property market against the background of current developments? What effects will the large influx of refugees
have on housing markets? To what extent are general legal
frameworks changing and what changes can be seen in
the investment market?
016
022
030
036
042
048
054
060
066
072
078
084
090
096
102
110
116
122
128
134
140
146
152
158
164
172
178
184
190
Augsburg
Berlin
Brunswick
Bremen
Chemnitz
Cologne
Dortmund
Dresden
Duisburg
Dusseldorf
Erfurt
Essen
Frankfurt am Main
Freiburg
Halle (Saale)
Hamburg
Hanover
Karlsruhe
Kiel
Leipzig
Lübeck
Magdeburg
Mainz
Mannheim
Munich
Nuremberg
Rostock
Stuttgart
Wiesbaden
[198]
Glossary and directory of sources
003
P R OJ EC T PA RT N E R S
Introducing the project partners:
Vonovia and CBRE
Vonovia
CBRE
Vonovia SE is one of the leading housing companies in Germany. The company is listed on the DAX 30 and currently
manages approximately 357,000 apartments in attractive
towns, cities, and regions throughout Germany. As a modern service provider, Vonovia’s business revolves around
customer orientation and tenant satisfaction. Offering affordable and attractive homes with a good quality of living
is a prerequisite for the sustainable growth of our company.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and
S&P 500 company headquartered in Los Angeles, is the
world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has
more than 70,000 employees (excluding affiliates), and
serves real estate owners, investors and occupiers through
more than 400 offices (excluding affiliates) worldwide.
CBRE offers strategic advice and execution for property
sales and leasing; corporate services; property, facilities
and project management; mortgage banking; appraisal and
valuation; development services; investment management;
and research and consulting. CBRE Residential Valuation
Germany is a market leader in residential property valuation. In 2014, around 850,000 residential units, with a
volume of approximately €48 billion were appraised.
Please visit our website at www.cbre.com
Vonovia apartments are predominantly located in cohesive developments distributed across 760 locations in Germany. All locations are served by property managers and
an in-house network of tradespeople to respond to tenants’
concerns. This close relationship with customers ensures a
rapid and reliable service tailored to tenants’ requirements.
Vonovia invests sustainably in the maintenance, modernisation and conversion of its buildings in accordance with
their age. The company also collaborates with local social
and cultural projects that enrich neighbourhoods and community life. www.vonovia.de
Vonovia in numbers
Apartments:
ca. 357,000
Apartment size:
62 m2 on average
Employees:
ca. 6,400
004
Investment volume 2016:
€500 m
P R OJ EC T PA RT N E R S
THe 30 LarGesT VonoVia LoCaTions
norTHern GermanY
While Hamburg remains unchallenged as a top-seven major
city with further prospects for growth, Bremen has also laid
successful foundations for the future with its transition from
shipbuilding to the growth sectors of aerospace engineering
and biotechnology. The extent to which Kiel will manage to
do this as the northernmost major city in Germany will depend
on developments in the service sector and its positioning as
the gateway to northeastern Europe.
berLin
Kiel
Hamburg
rHine-ruHr reGion
With around 10 million inhabitants, this
is one of the largest urban agglomerations in Europe. In Cologne, Dusseldorf, Dortmund and Essen, the region
comprises four of the 10 largest cities
in Germany. The transformation from
industry to the education, research and
service sectors is lending fresh impetus
to all markets.
Gelsenkirchen
Essen
Duisburg
Bremen
Bielefeld
Bochum
Cologne
Bonn
Wiesbaden
Mainz
Freiburg
HanoVer-bruns WiCK
The location forms part of the HanoverBrunswick-Göttingen-Wolfsburg metropolitan region with a population of
some 4 million people. With an international exhibition centre, its location
as a central European transport hub
and a broad sector mix (automotive
and mechanical engineering, logistics,
energy and research), the region is
well-equipped for the future.
Dusseldorf
The metropolitan region (more than
5.5 million inhabitants) comprising
Frankfurt, Wiesbaden, Mainz and Darmstadt enjoys an international reputation
as a financial centre, trade fair location
and transport hub and is one of the
largest economic regions in Germany.
Brunswick
Osnabrück
Dortmund
FranKFurT/rHine-main
Berlin
Hanover
Herne
Aachen
The most populous city in Germany
has transformed itself into a leading
European location for the cultural and
creative industries. Tourism is one of
the largest sources of revenue and
employment in the German capital.
Domestic and foreign capital is particularly being invested in the real estate
market, which is currently witnessing
buoyant development activity.
Frankfurt am Main
dresden
Darmstadt
Mannheim
Nuremberg
Karlsruhe
Stuttgart
Dresden represents Vonovia’s largest single location in terms of housing
stock with almost 38,000 apartments.
Along with Leipzig, the city has registered above-average population
growth, which is attributable to the
healthy employment market and good
quality of life.
Heidenheim
souTHern GermanY
Baden-Württemberg and Bavaria are
the leading federal states in Germany
in terms of population growth. The
region is characterised by both high
income levels and living costs.
Basis: Market value as of 31.12.2015
005
Dresden
Munich
INTRODUCTION
The German residential property market in
the political and public spotlight
It is incredible but true that, until only a few years ago, the
German residential property market led a niche existence
in the public consciousness. With a small number of exceptions, it was not difficult for tenants to find suitable
housing at reasonable rents in most German cities. Following negative experiences with state-subsidised, newbuild satellite towns and poorly refurbished apartments
in the federal states that emerged from the former East
Germany, acquiring residential property was no longer
a consideration for many private investors. Only a few
wealthy families invested locally in apartments or apartment buildings. The government had completely withdrawn from subsidising social housing construction, and
financially weakened cities and local authorities, as well
as industrial companies, took particular advantage of the
unbridled lending to investors between 2002 and 2007 to
restructure by disposing of residential portfolios. Companies holding residential portfolios were still predominantly
viewed by investors as low-margin, management-intensive, and static businesses.
In recent years, this landscape has changed radically. Positive fundamental economic data led to foreign investors
in particular rediscovering the German residential property market from 2011. The number and value of listed
residential landlords rose constantly. Strong rises in rents
and property prices, particularly in the economically attractive and sought-after areas, were suddenly headline
news, leading politicians to place the Mietpreisbremse
(capping of rents on re-letting) on their agendas. However,
the perennial talk of a property bubble in 2013/14 currently seems to have abated somewhat. Private owneroccupiers and investors from Germany and abroad are
taking advantage of the favourable financing conditions to
invest in “concrete gold”.
At the beginning of 2016, the German residential market
was dominated by three issues:
l Increased migration from within Germany and abroad
into cities and its effect on local housing markets
l The adaptation of legal frameworks resulting from
changes in the local markets
l The large influx of refugees from global crisis zones.
HIGH IMMIGRATION, LOW SUPPLY
Germany registered almost constant declines in net migration from 2001 and even saw negative net figures in
2008 and 2009. Since then, however, immigration has
risen sharply. According to the Federal Statistical Office,
net migration between 2010 and 2013 totalled 1.2 million people. In 2014 alone, there was positive net migration of around 550,000 people, the highest figure since
1993. This compares with a total of approx. 216,000 housing completions in Germany in 2014 plus refurbishment
of around 29,000 existing residential units. When this is
contrasted with around 159,000 units in 2009, the lowest
completion volume since German reunification, it is possible to speak of a recovery in housebuilding. However, following housing completions of approx. 215,000 units in
2013, the growth in 2014 was rather modest.
Overall, the comparison illustrates the growing discrepancy between supply and demand. However, the situation
varies widely at regional level. German cities in particular are faced with major challenges. In addition to significant immigration from abroad, they are also exposed to
high intra-regional migration flows. Until only a few years
ago, cities were suffering major population losses in favour
of their rural hinterlands. Now, the situation has changed
radically. The “return to the cities”, and particularly city
centres, has been a pronounced trend for a number of
years. In addition to young educational migrants, increasing numbers of families and single-person households are
being attracted by the benefits of city living, such as short
travel times, good local amenities and a broad cultural offerings. In contrast with previous eras, they are also often
006
INTRODUCTION
remaining in the city for the long term. Besides the consequent positive effects, such as increased tax revenues, this
is also creating wide-reaching challenges for cities. Adapting the transport and educational infrastructures to enlarged populations are just a couple of issues to tackle in
this context. There are particular challenges at present for
urban residential markets, which are witnessing significant
increases in demand for housing. The increase in completion volumes registered in many cities in recent years is
insufficient to keep pace with the high levels of migration.
Consequently, the discrepancy between supply and demand has produced housing market shortages in numerous cities and has ultimately resulted in rising rents and
property prices (some of them significant) in many places.
CHALLENGE OF REFUGEE INFLOWS
The third major issue dominating the residential property
market at the end of 2015 was the large influx of refugees.
The high number of refugees arriving in Germany from
crisis and war zones also poses extensive challenges for
the housing market. Numerous municipalities are desperately seeking accommodation for refugees and, in view of
the fact that residential markets are already strained, the
housing shortage is expected to become even more acute.
However, the actual housing requirements generated by
the influx of refugees into residential markets is difficult to
quantify owing to a lack of reliable figures. The nationwide
projections were repeatedly corrected upwards throughout 2015. According to official data, the 1 million mark had
been reached by the end of 2015.
CHANGING LEGAL FRAMEWORKS
The most recent developments also resulted in effects
on the legal framework regulating the housing market in
2014/2015. In autumn 2014, the German cabinet passed
draft legislation to curtail rental increases. The resulting
Mietpreisbremse (capping of rents on re-letting) came
into effect in June 2015, empowering federal states to enact appropriate regulations. The new regulations mean
that asking rents on re-lettings of existing property must
be no higher than 10 per cent above the level of local
comparable rents in areas with strained housing markets.
However, there are a number of exemption clauses. Newbuild apartments, for example, are completely exempt
from the Mietpreisbremse. In addition, for the time being,
§ 559 paras. 1 to 3 of the German Civil Code (BGB), which
apply to rental increases on modernised property, allow
11 per cent of expenditure on the property to be recovered
from the tenant each year. The small furnished apartment
market segment is also outside of the Mietpreisbremse.
According to research by CBRE, in addition to Bremen,
Berlin, and Hamburg, a further 265 local authorities (independent cities and municipalities) in Baden-Württemberg,
Bavaria, Hesse, North Rhine-Westphalia, Rhineland-Palatinate, and Schleswig-Holstein introduced the Mietpreisbremse by the end of 2015.
In view of the socio-political importance of the residential
property market, which has come firmly under the spotlight, the present residential market report seeks to contribute towards achieving greater transparency. The report
illustrates the diversity of prevailing trends in the 29 largest
local residential markets in Germany and discusses how
cities are responding to the current multi-faceted issues.
007
C I T Y CO M PA R I S O N
City comparison: An extensive overview
of 29 markets in Germany
Those who make investments reach their decisions based
upon extensive and robust analysis. While the residential
sector is long established in many ways, there are rapid
developments afoot. For investors seeking to invest their
capital in property, such current developments in the residential property market demand a detailed examination
of individual locations and an in-depth analysis of markets
and their prospects.
SELECTION OF THE 29 CITIES
The market report focuses on larger German cities with
more than 200,000 inhabitants. These locations in particular are currently benefiting from a series of parallel developments, such as the strong influx of young people (from
within Germany and abroad), the population growth due to
refugees, the prospering economy, the revitalisation of city
centres, the expansion of the education sector, numerous
new-build projects, and civic engagement.
We start on the following pages with a general overview of
the cities. This includes the formulation of various types of
markets and an analysis of the features and developments
exhibited by the cities via relevant indicators for the housing market. This is followed by extensive profiles on the
various developments and the afore-mentioned trends in
the individual cities.
The present report investigates all German cities with
more than 200,000 inhabitants (as of 31.12.2014). The
one exception is North Rhine-Westphalia. To avoid the
dominance of this federal state (there were 15 cities with
more than 200,000 inhabitants in this one state alone as
of 31.12.2014), the report only includes those cities with
a population above 400,000. However, with five cities in
the report, North Rhine-Westphalia remains a geographical focus of the markets investigated. The largest of the
cities studied is Berlin (approx. 3.47 million inhabitants),
followed by Hamburg, Munich, and Cologne, all of which
have over a million inhabitants. The smallest cities in terms
of population are Rostock, Erfurt, and Mainz with only
slightly more than 200,000 inhabitants. The cities are distributed geographically across 14 of the 16 federal states.
Only Saarland and Brandenburg are not represented in the
report as neither state contains a city with a population of
more than 200,000.
Besides Berlin, Bremen, and Hamburg, the remaining
26 markets are distributed across the federal states as
follows:
lBaden-Württemberg: Freiburg, Karlsruhe,
Mannheim, Stuttgart
lBavaria: Augsburg, Munich, Nuremberg
lHesse: Frankfurt am Main, Wiesbaden
l Mecklenburg-Western Pomerania: Rostock
l Lower Saxony: Brunswick, Hanover
l North Rhine-Westphalia: Cologne, Dortmund,
Dusseldorf, Duisburg, Essen
l Rhineland Palatinate: Mainz
lSaxony: Chemnitz, Dresden, Leipzig
lSaxony-Anhalt: Halle (Saale), Magdeburg
lSchleswig-Holstein: Kiel, Lübeck
lThuringia: Erfurt
008
The 29 cities analysed according to population
200,000 to 249,999
250,000 to 499,999
Kiel
500,000 to 999,999
Rostock
Lübeck
1 million and up
Hamburg
Bremen
Berlin
Brunswick
Hanover
Magdeburg
Essen
Dortmund
Duisburg
Halle
Leipzig
Dusseldorf
Dresden
Erfurt
Cologne
Wiesbaden
Chemnitz
Frankfurt am Main
Mainz
Nuremberg
Mannheim
Karlsruhe
Stuttgart
Augsburg
Munich
Freiburg
Population as of 31.12.2014. Source: Federal Statistics Office
009
Top markets, good performers,
trend reversers & Co.
The cities studied differ not only in their size and geographical situation but also in their socio-demographic and socio-economic structures and trends. There are also significant differences in their respective housing markets. Each
of the 29 cities analysed has its own, and in some cases
unique, characteristics. These shape the markets as much
as the similarities, which are equally identifiable. Fundamentally, the 29 cities studied can be classified into the
following five groups with respect to their socio-economic
and housing-market-specific features:
1. Top markets
2. “Dynamic cities”
3. Traditionally sought-after, average-sized markets
4. “Good performers”
5. “Structural changers” and “trend reversers”
Top markets
The top markets among the 29 cities analysed are major
cities of above-average success with more than 500,000
inhabitants that have long been characterised by positive
demographic and economic conditions and growth. As major financial, commercial and industrial centres, the top locations are home to major national and international companies and corporate headquarters. They also comprise
major transport hubs, often of international significance.
The top markets are attractive to a wide range of target
groups and are magnets for influxes of migrants both from
within Germany and abroad, resulting in strained housing
markets. Overall, the top markets are typically characterised by the following features:
l Consistently positive and predominantly above-average population growth owing to positive net migration
and a corresponding increase in the number of households. Migration both from within Germany and abroad
l Above-average purchasing power
l Low to moderate unemployment and a high proportion
of employees subject to social security contributions
l Significant surplus demand in the housing market
for all property types (apartments, single-family/
two-family houses and apartment buildings) and from
private persons/owner-occupiers, private investors
and institutional investors
l Very low and further declining housing vacancy rates,
already trending towards zero in many districts
l High to the highest rents and property prices as well
as generally consistent rises in asking rents and prices
despite the already above-average levels
l High purchase price multipliers and low yields
l Low willingness to sell on the part of owners and
consequent low supply of available properties or units
Of the 29 cities analysed in this report, Dusseldorf, Frankfurt am Main, Hamburg, Cologne, Munich, and Stuttgart
comprise the group of top markets. Thus, the group corresponds with the cities generally known as the top seven
markets in Germany, with the exception of the capital Berlin. Owing to its current highly dynamic development and
from a significantly lower base than the six other top seven
markets on many indicators, Berlin is categorised among
the dynamic cities.
010
population growth from 2011 to 2014 – the cities with the strongest growth
indexed, population 2011 = 100
107
106
106.8
Leipzig
106.1
Frankfurt am Main
104.7
Munich
104.3 Augsburg
105
104
103
104.3
Berlin
103.7
Freiburg
103.6
Dresden
103.6
Stuttgart
103.3 Cologne
102
103.0
101
Mainz
101.1 Germany
100
99
2011
2012
2013
2014
Source: Federal Statistical Office, compiled by CBRE
Dynamic cities
The dynamic cities are characterised by rapid positive development in the recent past and have, therefore, increasingly come into focus for investors. From a low base, these
dynamic cities show significantly above-average socio-economic development, both compared with their respective
federal states and Germany as a whole, but still lag behind
the top markets and the traditionally sought-after, averagesized markets with regard to these factors owing to their
low starting point. However, the dynamic cities have further, possibly more extensive, potential for development,
although the extent of this is dependent on the scale of
development already witnessed, as well as future trends.
Overall, this group is characterised by cities with the following features:
l Significantly above-average growth in population
and household figures
l Below-average but rising purchasing power
l Above-average unemployment rate but strong
employment growth in recent years
l Moderate rents and property prices compared with
the top markets and the traditionally sought-after,
average-sized markets
l Strong increases in rents and property prices in the
recent past with some exorbitant growth rates
l Surplus demand in the housing market in the segments
and locations preferred by migrants
l Low or significantly declining housing vacancy rates
l Rapidly rising purchase price multipliers
Among the 29 markets analysed in this report, the group
of dynamic cities comprises the German capital Berlin and
by far the largest cities in eastern Germany, Dresden and
Leipzig.
011
Traditionally sought-after, averagesized markets
The traditionally sought-after, average-sized markets among
the 29 cities studied resemble the top markets in many aspects. However, as major cities with around 200,000 to
500,000 inhabitants, they are smaller than the top markets
and normally have lower net migration from abroad. These
cities are often situated in close proximity to the top markets or are at least closely connected to them via transport
links. The cities in this group have often had important national or at least transregional functions as state capitals,
centres of administration, or major university locations for
decades, if not centuries. In addition, the cities in this group
are characterised by the following features:
l Consistently positive to above-average growth in
population and household figures
l Low to moderate unemployment and a high proportion
of employees subject to social security contributions
l Average to above-average purchasing power
Top 10: change in employees subject to
social security contributions
2004 to 2014 in per cent
Leipzig
+28.2
Berlin
+24.6
Freiburg
+22.2
Hamburg
+21.9
Cologne
+18.2
Munich
+18.0
Karlsruhe
+17.7
Brunswick
+17.4
Dresden
+17.3
Kiel
+16.6
Germany
+14.7
Source: Federal Employment Agency, compiled by CBRE
l High rents and property prices, mostly somewhat
below the level of the top major cities but in some
cases already higher
l Continuing rises in asking rents and asking prices
despite the already high levels
l Surplus demand in the housing market, particularly in
the apartment and single-/two-family house segments
l Low to very low and further declining housing
vacancy rates
l Low willingness to sell on the part of owners and consequent low supply of available properties or units
Traditionally sought-after, average-sized markets are predominantly found in southern Germany. This group comprises seven of the 29 cities studied: Augsburg, Freiburg,
Karlsruhe, Mainz, Mannheim, Nuremberg and Wiesbaden.
Good performers
The next group among the 29 cities analysed, good performers, are generally characterised by a stable demographic and economic starting basis and positive overall
development, which can even be (highly) vigorous in some
areas. However, in contrast with the dynamic cities, these
markets do not exhibit volatile growth but rather stable
trends. The majority of cities in this group have a population of around 200,000 and are of at least transregional
importance as centres of administration. The good performers in this report are normally characterised by the
following features:
l Stable to slightly above-average growth in population
and household figures
l Moderate to slightly above-average unemployment
rates
l Moderate rents and property prices compared with
l Rising asking rents and asking prices with even
significantly above-average growth rates in places
l Housing vacancy rate below fluctuation reserves of
around two to three per cent
l Moderate purchase price multipliers compared with
Among the 29 cities analysed in this report, the good
performers group comprises Brunswick, Erfurt, Hanover,
Kiel and Lübeck.
012
Structural changers and
trend reversers
Top 10: change in asking rents
2012 to 2015 in per cent
The fifth group among the 29 cities studied comprises the
structural changers and trend reversers. These labels reflect
the essence of the cities’ development. Structural changers
are former industrial cities with high economic importance
for the entire region. Following the demise of major industrial sectors in recent decades, these cities have undergone
far-reaching transformations in the course of structural
change. The largest challenges have now been overcome
and the turnaround successfully negotiated. Consequently,
economic fundamentals are trending upwards, albeit without the same vigour witnessed in other cities. With an
ongoing process of improving structures and conditions
for businesses to relocate to these cities, the structural
changers are laying the foundations to keep up with the
dynamism and development in other cities. The structural
changers and trend reversers in this report are normally
characterised by the following features:
l Slight to noticeable positive population growth
l Below-average purchasing power
l Above-average unemployment rate, but often
strong employment growth in recent years
l Below-average to moderate rents and property prices
l Positive to significantly above-average rental and
price growth
l Moderate to above-average housing vacancy rates
with some significant declines in vacancy rates
l Often still low purchase price multipliers
Berlin
+19.9
Augsburg
+17.1
Brunswick
+15.5
Hanover
+14.0
Munich
+13.4
Leipzig
+12.6
Dortmund
+11.5
Dresden
+11.4
Nuremberg
+10.1
Cologne
+9.6
Germany
+3.7
Source: CBRE, based on data from empirica-systeme
CONCLUSION: NOT ONLY THE TOP MARKETS IMPRESS
Among the 29 cities analysed, Bremen, Chemnitz, Dortmund, Duisburg, Essen, Halle, Magdeburg and Rostock
comprise the structural changers and trend reversers group.
With an increase in asking rents of almost 12 per cent over
the last three years, Dortmund has recorded the highest
rental growth in this group. The weakest growth has been
witnessed in Rostock, where asking rents have risen by just
0.6 per cent over the last three years.
Investment in residential property is not only worthwhile
in prospering cities with the best fundamentals. Upon
closer examination of trends in indicators relevant to
the housing market, it is evident that cities which have
strengths in some areas and more modest results in others can also be impressive. Top markets or traditionally
established locations are not exclusively the most promising cities for investment.
Leipzig, for instance, has witnessed the strongest growth
in terms of demographic trends in recent years. According
to the latest available data, the population in Leipzig rose
by 6.8 per cent within three years (end of 2011 to 2014),
which was the highest growth among all 29 cities studied.
Two of the top markets followed in second and third place
in Frankfurt (+6.1 per cent) and Munich (+4.7 per cent),
while Augsburg and Berlin (each +4.3 per cent) occupied
fourth and fifth places.
013
Munich has exhibited the highest purchasing power
among the 29 cities analysed for years. With an average of
€29,037 per capita, the city is significantly ahead of other
top markets Dusseldorf (€25,963) and Frankfurt (€25,168)
and far above the German average (€21,865). Munich also
tops the unemployment rate rankings with 5.2 per cent.
The state capital of Baden-Württemberg, Stuttgart, ranks
third with 5.7 per cent, while Karlsruhe (5.5 per cent),
Mannheim and Freiburg (each 6.0 per cent), three of the
traditionally sought-after, average-sized markets, are also
among the five cities with the lowest unemployment rate.
As already stated, there are many cities among the top
29 markets where rents are already high yet continue to
rise. Munich topped the rental ranking by some distance
with a median asking rent of €14.61 per sq m per month.
Asking rents in the city have also shown significant growth
over the last three years (+13.4 per cent). Stuttgart, too,
posted significant rental increases (+9.1 per cent) despite
an already high asking rent of €10.91. In addition to the
continued high growth rates in these two top markets, the
cities currently registering high rental increases are those
starting from a lower base. The markets with the largest rental increases include two good performers (Bruns
wick and Hanover) as well as one dynamic city (Leipzig)
and a structural changer (Dortmund). With an increase of
15.5 per cent, Brunswick posted the third highest increase
in asking rents over the last three years among the 29 cities studied. However, the average asking rent of €7.16 per
sq m remains moderate in comparison to the cities analysed. The same is true of Hanover (+14.0 per cent to
€7.50), Leipzig (+12.6 per cent to €5.63) and Dortmund
(+11.5 per cent to €6.00).
SOPHISTICATED ANALYSIS ESSENTIAL
The top markets are not alone in demonstrating that cities with highly positive socio-demographic and socio-economic trends, as well as high rental levels, also frequently
have high sale prices and high multipliers. Apartment
buildings in corresponding locations are often only of interest to risk-averse or private investors. However, the observations in the report also demonstrate that, in addition to
the markets that are traditionally strong in almost all areas
and have correspondingly high price levels and scarce supply, there are also cities with significant strengths in some
aspects and that may be attractive not only to opportunistic investors with a greater appetite for risk. For investors,
therefore, it is essential to look more closely and analyse
cities in-depth in respect of potential investments.
The report also subjects the 29 cities to a detailed analysis with regard to demographics, socio-economics and
the housing market and provides the reader with information on trends and developments in the respective markets. Numerous graphics provide information regarding
current developments. The standardised layout of these
enables direct comparison with the other markets or national figures. With regard to the housing markets, there is
a particular focus on the rental apartment market, which is
a defining segment for cities. Based upon postcode areas,
each of the 29 cities has been divided into spatial categories with the same rental levels. This enables a small-scale
analysis of the asking rents in each city. The profiles are
complemented by numerous graphics, tables and observations, providing extensive information on the 29 cities.
In many cities, vacancies are now significantly below fluctuation reserves. Consequently, 22 of the 29 cities analysed recorded a vacancy rate below three per cent. Strong
growth in population, often combined with insufficient
building activity, has depleted the necessary reserves
causing contraction in the number of available units. Four of
the 29 cities analysed even registered an active market vacancy rate below one per cent; namely Munich, Frankfurt,
Hamburg and Freiburg. In contrast, the vacancy rates in
Leipzig, Halle and Chemnitz were markedly higher, ranging
between 6.0 per cent and 9.2 per cent. However, in these
dynamic or trend-reversing cities, vacancy rates have also
fallen from double-digit levels in recent years and in some
cases significantly.
014
CITY PROFILES
Detailed
analysis of the
cities
29
015
CITY PROFILE
n
AU G S B U R G
Augsburg: Home of innovation
Augsburg knows how to structure change. The former textile stronghold is now a leader in the fibre
composite, mechatronics & automation, environmental technology and IT sectors. Despite its close
proximity to Munich, rental levels are moderate.
With 281,111 inhabitants, Augsburg is the third-largest city
in Bavaria after Munich and Nuremberg and the only city in
Germany with its own civic holiday. Since 1650 the “Augsburg High Peace Festival” has celebrated the equal status
of the Catholic and Lutheran confessions that was gained
in the Peace of Westphalia. The city is notable for its many
creative minds and innovative developments. Jakob Fugger
laid the foundations here for the modern financial economy, Rudolf Diesel developed the engine that is named after him, Johann Heinrich von Schüle was one of the biggest
textile manufacturers of his time, and the grandchildren of
the aviation pioneers from Augsburg are now active in the
city’s aerospace companies. Economic strength and social responsibility have always gone hand in hand in Augsburg. The “Fuggerei”, whose name harks back to a foundation of the merchant Jakob Fugger from 1521, is the oldest
social housing estate in the world. The annual rent for the
apartments, most of which are 60 square metres in size,
is still one Rhenish Gilder, now €0.88, together with three
prayers a day for the salvation of the founding family. The
Altstadt (Old Town), with its narrow alleys and corners, the
preserved weirs, the city walls and the Lech canals, also
contributes to Augsburg’s historical flair. Numerous water towers and the hydropower stations at the Wolfzahnau
or at the Hochablass, bear witness to a long tradition of
hydraulic engineering in the city. With its historical water
management, Augsburg is now on the list of cities under
consideration to become a UNESCO World Heritage Site.
016
CITY PROFILE
n
AU G S B U R G
The City of Augsburg in Bavaria is one of the world’s leading locations in the
manufacture of robots. Augsburg-based companies in the field of automation
produce more than 60 robots per day.
LOOKING TOWARDS A PROFITABLE FUTURE
Augsburg benefits from good transport links with Munich, situated around 80 kilometres away, via the A8 motorway. The Bavarian capital can also be reached within
just 30 minutes or so via ICE high-speed train. Augsburg’s railway station is currently undergoing conversion
into a transport hub to improve the co-ordination of the
tram, regional railways and long-distance transport networks at a cost of some €150 million. The city has coped
with the downfall of the traditionally strong textile industry and the withdrawal of the US armed forces in the
1990s and has managed an impressive structural change.
With a network of companies, research and funding institutions, associations and education and training institu-
017
CITY PROFILE
n
AU G S B U R G
tions, Augsburg has a high level of future potential in the
mechatronics and automation, fibre composite technology,
environmental technology and information and communication technology sectors of expertise. In addition to major companies, such as KUKA, MAN Diesel & Turbo, and
MT Aerospace, there are numerous innovative small and
medium-sized enterprises in Augsburg. Augsburg also has
a vibrant research landscape. The University of Augsburg,
the university of applied sciences, and numerous institutions and project groups co-operate closely with industry.
A new institute building for materials resource management at the University of Augsburg is in the pipeline at a
cost of €42.3 million, which, together with other research
institutions in Augsburg, namely the Fraunhofer-Gesell
schaft and the German Aerospace Center, will consolidate
academic expertise in the fields of business information
systems, materials sciences and resource management
as well as mechatronics, information technology and software. A key milestone in the networking of science and industry is the Augsburg Innovation Park. On a site covering
70 hectares, one of the largest innovation parks in Europe,
which also includes the Augsburg Technology Centre, is
being created near the city centre. Furthermore, Messe
Augsburg is the third-largest exhibition centre in Bavaria.
POSITIVE TREND IN HOUSEHOLD NUMBERS
The number of households in Augsburg is expected to
grow by 3.7 per cent between 2012 and 2030. From
2009 to 2013, annual net migration of young adults from
the EU-27 countries grew significantly. More than half of
incoming persons in this age group are “education migrants”, who usually come to the university of applied
sciences at the beginning of the winter semester. Consequently, the proportion of young people under the age of
30 represents the largest age group in Augsburg at 33 per
cent. However, demographic change will also become noticeable in Augsburg during the next 20 years. According
to a small-scale population projection conducted by the
City, the share of people under the age of 30 is expected
to fall by 1.3 per cent in comparison to 2011, with the
share of those over the age of 60 rising by 13.7 per cent.
In terms of the individual districts, the projection assumes
population growth, particularly in the districts near the
city centre. However, if the influx continues in line with
previous years, mainly in the 20 to 25 year-olds age group,
Augsburg will age more slowly than projected. For the entire city, this will result in a relatively lower rise in the average age, from 42.5 in 2010 to 43.7 in 2030.
RISING RENTS, MODERATE LEVEL
The median asking rent in Augsburg has risen by 17.1 per
cent from €7.26 per square metre in 2012 to €8.50 in
2015. This places Augsburg second out of the 29 cities
in terms of rental growth, behind Berlin, which probably
owes much to the city’s proximity to Munich. However,
compared with the average rent of €14.61 in the Bavarian
capital, which is only 30 minutes away by train, rents in
Augsburg are still at a moderate level. The highest median
asking rents in 2015 were recorded in the Antonsviertel
and Hochfeld areas as well as the university quarter [01],
to the south of the city centre, at €8.99. Due to its close
vicinity to the university, the area is particularly popular with students as well as university employees. The city
centre can be quickly reached by public transport. The
university quarter began to emerge in 1973 on the former
site of the factory airfield of Messerschmitt AG, which,
following a number of acquisitions, now belongs to Airbus subsidiary Premium Aerotec. The prevailing high-rise
apartment buildings do not appear uniform or anonymous
due to the diverse design, the individual facilities and
018
CITY PROFILE
n
AU G S B U R G
DISTRIBUTION OF ASKING RENTS IN AUGSBURG 2014 AND 2015
Proportion of offers at the respective rent price in €/m2/month
2014
1.0
0.9
15.3
10.5
57.3
51.4
21.1
28.5
3.8
7.3
2015
1.6
1.3
60%
50%
40%
30%
20%
10%
0%
under €5.00
€5.00 to €6.99
€7.00 to €8.99
€9.00 to €10.99
€11.00 to €12.99
€13.00 and over
In 2015, the majority of asking rents ranged between €7.00 and €8.99. However, the
share of high-priced rents particularly increased, especially affecting the segments
ranging from €9.00 to €12.99.
their reasonable height, with rarely more than six storeys.
Many streets are free from cars and embellished with
rows of trees and landscaped spaces. The Antonsviertel
area still features many well-preserved, post-classical or
new-baroque buildings and usually open developments
with many landscaped spaces. However, buildings are also
found here that were constructed during the “modern”
building culture of the 1950s to 1970s after the demolition
of the historical buildings.
The median asking rent in Augsburg city centre was of a
similarly high level at €8.95 per square metre [07]. The
city centre is divided into the Oberstadt (Upper Town),
with its wide shopping streets, and the Unterstadt (Lower
Town) and Altstadt areas with their narrow, winding alleys.
The Altstadt in Augsburg, which is one of the largest old
towns in Germany by area, provides a high quality of life
now since being extensively renovated from the 1980s
onwards. Due to its many creeks, canals and bridges, the
Key Figures for the housing market
Augsburg
Bavaria
Average asking rent 2015 in €/m²/month
8.50
7.70
6.51
Average size of apartments on offer 2015 in m²
63.0
74.0
68.0
Vacancy rate in apartment buildings 2014 in %
1.2
1.6
3.0
Newly finished apartments1) per 1,000 residents 2014
5.5
3.7
2.7
Of which are in apartment buildings
4.7
1.9
1.3
2)
Germany
1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency
019
CITY PROFILE
n
AU G S B U R G
Asking Rents in AUGSBURG 2015
City area
Number of
rental offers
Apartment size,
average in m2
Median rent excl. utilities, in €/m2/month
[01] Antonsviertel, Hochfeld, University quarter
270
62.5
8.99
[02] Bärenkeller, Kriegshaber, Oberhausen
369
60.0
8.00
[03] Bergheim, Göggingen, Inningen
257
63.0
8.78
[04] Firnhaberau, Hammerschmiede
49
66.8
8.14
[05]
Haunstetten-Siebenbrunn
179
66.0
7.92
[06]
Hochzoll
148
62.5
7.99
[07] City Centre
854
63.0
8.95
[08]
Lechhausen
313
64.0
8.27
[09]
Pfersee
175
64.8
8.33
[10]
Spickel-Herrenbach
141
63.0
8.67
2,755
63.0
8.50
Augsburg average
district is frequently referred to as “Little Venice”. As
the alleys and streets in the Altstadt area are free from
through traffic, it is a very quiet residential location despite its central location.
The lowest median asking rent in Augsburg was found
in the Haunstetten-Siebenbrunn [05] area in the south
of the city at €7.92 per square metre. However, this has
risen sharply in recent years from an average rent of just
€6.90 in 2012. In view of the moderate rental levels by citywide comparison and the fact that rents are rising throughout the city, it is not improbable that the area will see further rental growth. The surrounding areas, particularly the
Siebentischwald, Haunstetter Wald, and Stadtwald forests
offer a pleasant contrast to the working day. Augsburg city
centre can be reached within 15 minutes by public transport. The densely-populated Haunstetten area is renowned
for the major Messerschmitt factory created at the start of
the 20th century. Siebenbrunn, meanwhile, epitomises the
rural character of the district.
The Mietpreisbremse (capping of rents on re-letting) came
into effect in Augsburg on 1 August 2015. Since the city
does not have a rent index, it remains to be seen how the
local comparable rents will be calculated. Indeed, this may
pose a number of challenges.
AUGSBURG IS RICH IN TRADITION AND possesses A PIONEERING SPIRIT IN RESEARCH
Augsburg is the third-largest city in Bavaria and, with the “Fuggerei”, home to the oldest social housing estate in the
world. Augsburg has particular economic strengths in the fields of mechatronics and automation, fibre composite
technology, environmental technology, and information and communication technology. The positive population and
economic growth, as well as the city’s location within the catchment area of Munich, resulted in a 17.1 per cent increase in asking rents between 2012 and 2015; the highest growth across all cities in Bavaria. Further rental and price
growth is expected going forward. However, the median asking rent of €8.50 per square metre remains moderate in
comparison to Munich.
020
CITY PROFILE
n
AU G S B U R G
aVeraGe asKinG renTs in CiTY areas 2015
04
02
08
07
09
10
06
01
03
05
Insufficient number of cases
Median in €/m²/month
7.92 – 7.99
8.00 – 8.04
8.05 – 8.19
8.20 – 8.30
8.31 – 8.54
021
8.55 – 8.75
8.76 – 8.93
8.94 – 8.99
CITY PROFILE
n
BERLIN
Berlin: Rising pressure from economic
and population growth
Following times of high unemployment and debt, the German capital has witnessed above-average
growth in recent years. Asking rents are rising consistently and, thanks to increases in population and
purchasing power, this is now also true of the outskirts of Berlin.
Berlin’s economy is undergoing dynamic growth. Between
mid-2014 and mid-2015, the gross domestic product rose
by 1.7 per cent on a price-adjusted basis, which is ahead
of the German average (+1.4 per cent). Following German
reunification, Berlin is once again in the heart of Europe
and has established itself as an international centre of
culture and government. Government, parliament, associations, media, and other institutions in the capital provide
a solid basis, which is largely independent of economic
performance. However, the city has enjoyed particular
economic growth in the construction industry, commerce,
gastronomy, and the information and communication
sector; it boasts the largest number of Internet start-ups
in Germany. The largest single sector in Berlin is tourism.
The city is the third most popular destination in Europe
behind London and Paris.
Berlin’s industrial sector is also growing again following a
prolonged period of weakness. Other key sectors in the
capital include vehicle and engine manufacturing, pharmaceuticals, medical technology, and electrical engineering.
The number of people in work rose overall by 1.3 per cent
from the second quarter of 2014 to the corresponding period in 2015, according to the latest available figures, which
was the highest increase across all federal states.
HOUSING: SHARP RISE IN DEMAND
Demand for housing in Berlin is being driven by increases
in population and household numbers as well as disposable income. Even before the large influx of refugees, the population was growing consistently by around
40,000 per year. Between the end of 2011 and the end
of 2014, the total number of inhabitants in the city rose
by 4.3 per cent to 3,469,849. As a result of the grow-
022
CITY PROFILE
n
BERLIN
The German capital, Berlin, is immensely popular with new arrivals. In recent
years, the city has gained around 40,000 new inhabitants annually as a result of
immigration.
ing population, the number of households in Berlin is rising by more than 20,000 per year. In 2011, Berlin’s Senate expected the population to rise by approximately
250,000 by 2030. However, in view of current population
growth, these projections appear far too conservative.
While construction activity has recently risen, the supply
of housing cannot keep pace with this growing demand.
In 2014, almost 7,300 residential units were completed
in the city (in new residential and non-residential buildings including residential homes). However, the absolute
figure falls significantly short of growth in population and
households. In 2015, new-build activity gained significant momentum. The number of planning approvals for
residential units (in new residential and non-residential
023
CITY PROFILE
n
BERLIN
buildings) totalled 8,488 in the first six months of the
year alone; 6.7 per cent higher than in the previous year
but still significantly short of the growth in the number of
households.
This increasing supply shortage is resulting in significantly
higher asking rents. Between 2012 and 2015 alone, the
median asking rent per square metre rose by 19.9 per cent.
This represented the highest percentage increase across
all 29 cities researched for this report, ahead of Augsburg
(+17.1 per cent) and Brunswick (+15.5 per cent). Now, Berlin ranks in 10th place among the 29 cities included in the
report. The median asking rent in 2015 stood at €8.99 per
square metre. The vacancy rate in apartment buildings
has also fallen consistently, declining from 3.3 per cent in
2009 to just 1.5 per cent in 2014.
A YOUNG AND MOBILE POPULATION
The number of single-person households in Berlin is disproportionately high at 53.9 per cent, whereas households with three or more members are significantly under-represented compared with the rest of Germany. The
latter is typical of major cities. However, while some other
cities have a high proportion of senior citizens, this group
is also below-average in size in Berlin.
In the spatially and socially very heterogeneous German
capital, local rental levels also show a wide variation. The
highest levels in 2015 were reported in the city centre area
comprising Chausseestraße, Unter den Linden, Rosenthaler Platz and Hackescher Markt [05] with a median
asking rent of exactly €13.00 per square metre. Despite the
high rental level, the area is enjoying strong demand and
registered an increase of 6.6 per cent compared with the
previous year. Spacious apartments are available in both
old buildings and new-builds. Indeed, property listings in
this area have the third-highest average living space of all
areas in Berlin at 79 square metres. Despite the central location, there is still further potential for new-build development, which is currently being particularly exploited on
and near strips previously occupied by the Berlin Wall in
the west, south and north of the area. Examples include
the Europacity development near the main railway station,
the Feuerlandhöfe opposite to the Federal Intelligence Service headquarters and the Markgrafenkarree between the
Gendarmenmarkt and Kreuzberg.
TRENDY AREA AND MIDDLE-CLASS CITY CENTRE
The second highest median asking rent in 2015 was found
in the prestigious residential area comprising Grunewald
and Dahlem [12]. These districts offer by far the largest
apartments in the city, with an average size of 97.4 square
metre; the fourth highest figure across all areas studied
in this report. However, Grunewald and Dahlem are also
notable for the relatively weak nature of the prime segment. The most expensive decile of asking rents started
at €14.09 per square metre, placing the area just 10th in
the Berlin rankings. The reason for this is that demand at
the top end of the market in such areas with a high proportion of villas is primarily for home ownership rather
than rental apartments.
024
CITY PROFILE
n
BERLIN
DISTRIBUTION OF ASKING RENTS IN BERLIN 2014 AND 2015
2014
9.2
7.9
30.3
27.3
27.4
27.0
16.0
17.9
8.8
9.8
2015
8.4
10.1
40%
30%
20%
10%
0%
under €6.00
€6.00 to €7.99
€8.00 to €9.99
€10.00 to €11.99
€12.00 to €13.99
€14.00 and over
The rental growth in Berlin is reflected in the distribution of asking rents. In 2014,
around 33 per cent of lettings were priced at €10.00 per square metre and above.
In 2015, this rose to almost 38 per cent.
The next highest median asking rent was recorded in
those areas inside the S-Bahn ring, which comprises the
inner city area, home to some 1 million inhabitants. The
areas with the highest rents are dominated by old buildings from the Wilhelminian period, wide leafy roads and
a mix of residential, commercial, retail and restaurant
uses. Kreuzberg [18] has seen particularly strong rental
increases in recent years to €11.43. The area remains
characterised both by a trendy image with a large propor-
tion of young people, people of Turkish origin and a vocal activist scene, as well as high demand from investors
and occupiers (both tenants and owner-occupiers) due
to its proximity to the city centre and urban vitality. Demand from wealthy individuals both from Germany and
abroad is particularly concentrated in areas comprising
old buildings in south west and east Kreuzberg (such as
Bergmannkiez and Graefekiez). The adjoining Nord-Neukölln [23] is also dominated by old buildings, with a few
Berlin
Federal State Berlin
Germany
8.99
8.99
6.51
64.3
64.3
68.0
1.5
1.5
3.0
2.1
2.1
2.7
1.5
1.5
1.3
2)
025
CITY PROFILE
n
BERLIN
exceptions, which were built in the Wilhelminian period
for less wealthy sections of the population. With an average size of 50 square metres in 2015, the apartments
here were the smallest available in the entire city. The district has been discovered as an alternative to the expensive Kreuzberg and witnessed a particularly sharp rise in
the median asking rent of 26.3 per cent between 2012 and
2015 to exactly €10.00.
Charlottenburg [27] to the left and right of the Kurfürstendamm is also characterised by old buildings and a vibrant
mix of uses (€11.03 per square metre). However, many inhabitants are older and wealthier than those in Kreuzberg
and its surroundings and the area is somewhat more elegant. With an average size of 79 square metre, the apartments offered are far larger than those in the afore-mentioned districts. Rents immediately southeast of here in
Schöneberg [02], with its middle-class, well-kept old buildings and post-war districts, as well as in Alt-Schöneberg
and Viktoria-Luise-Platz are somewhat lower at €10.26.
EASTERN CITY CENTRE PERIPHERY: STILL ONLY
MODEST RENTAL GROWTH
High median asking rents between €10.78 and €11.08 are
also commonly seen in densely developed districts of
old buildings inside the S-Bahn ring, namely Prenzlauer
Berg [25] and Friedrichshain [11] on the northeastern
and eastern periphery of the city centre. Following years
of strong rental growth, however, the potential in Prenz
lauer Berg currently appears to have been largely exhausted. The median asking rent rose by 4.6 per cent
in 2015, which was below the overall figure for Berlin of
5.1 per cent.
Relatively high median rents of more than €9.00 can be
found outside of Berlin’s city centre ring, particularly in
the adjacent districts to both the south and the west. This
is true of Charlottenburg-Westend [33] and the southern
areas of Friedenau and Schmargendorf, including northern Steglitz [08].
GOOD TRANSPORT LINKS ARE IMPORTANT
Both tenants and investors are increasingly turning their
attention to areas that are well connected to the city centre yet currently still offer more affordable terms for occupiers – generally around or slightly above Berlin’s overall
median asking rent of €8.99. This includes the area comprising Rummelsburg, Karlshorst and Treptower Park [26]
on the southeastern periphery of the city centre. This is
a mixed area that combines industry and large transport
routes with middle-class, well-kept, multi-storey properties further out in Karlshorst, and the Stralau peninsula,
where extensive new-build rental housing has emerged
over the last decade. The area comprising Niederschönhausen, Central Pankow, Neumannstraße, Ostseestraße
and Weißensee West [22] is an alternative district with
good connections to the city centre yet relatively low
rents to date.
Even lower rents are found in the districts adjoining the city
centre to the north, extending from Charlottenburg North
to Wedding with Nauener Platz and Gesundbrunnen [04].
The area is predominantly comprised of simpler old buildings and social housing, and busy roads and railways are
often nearby. The northern area is also on the approach to
Tegel Airport. Charlottenburg North, with its high proportion of former social housing from the 1950s and 1960s,
enjoys a special position. Even lower median asking rents
of €8.13 are found in Friedrichsfelde North, Central Lich
tenberg and Fennpfuhl [09] to the east of the city centre. These districts are dominated by Plattenbau buildings
(slab construction). However, from an area of little repute,
this part of Berlin has now been discovered as a well-connected alternative to the city centre. Indeed, this is not the
only area where affordable yet well-connected locations
are increasingly being sought outside of the S-Bahn ring.
AFFORDABLE RENTS IN THE OUTSKIRTS
In the peripheral areas of Berlin, there is a wide variation in building stock and rental levels. The highest asking
rent of €9.05 is found in the south west of the city comprising Zehlendorf, Clayallee South, Wannsee, Nikolassee, Schlachtensee, Gatow, and Kladow [34]. The areas
in Zehlendorf in particular are a focal point of expensive
and even luxury housing with numerous villas and singlefamily houses in attractive locations on the water or near
woodland. However, owner-occupiers account for large
parts of the market, meaning that rental levels are high although not at the peak levels found in the centre of Berlin.
Slightly less expensive at €8.50 is the adjacent, densely
developed area to the east comprising Lichterfelde, Unter
026
CITY PROFILE
den Eichen and Ostpreußendamm [19]. Similarly to the
areas in the southwest, the northwestern outskirts comprising Konradshöhe, Heiligensee, Frohnau, Hermsdorf
and Alt-Tegel [16] are primarily an owner-occupier market. These areas also feature numerous waterside and
woodland locations as well as many small-scale developments of single-family houses and villas. At €8.42, the
rental level is good but not exorbitant.
n
BERLIN
derground system, comprising Johannisthaler Chaussee,
Buckow East and Gropiusstadt [14], an area established
around 1970 with high-rises and large open spaces. Large
parts of Spandau on the western outskirts of Berlin also fall
within the price segment around €7.00.
The peripheral areas of Berlin, such as Britz, Rudow and
northern Pankow, are also dominated by asking rents between €7.00 and €8.00. These areas are characterised by
post-war rental apartment blocks from large-scale Plattenbau buildings to small apartment complexes. Such
developments are interspersed with areas of owner-occupied homes, some of them quite extensive, which are
of an average or more basic standard. However, there are
also suburban centres, often with good local infrastructure
resembling that of a medium-sized town.
The least expensive areas of Berlin show median asking rents below €7.30. Many of these comprise estates of
post-war social housing and Plattenbau buildings, some
are remote from the city centre on the outskirts and some
share all of these characteristics. Rents have shown respectable percentage growth but from a very low base.
These areas remain locations for tenants on a small budget.
Relatively central locations in these areas are parts of
Neukölln and Treptow-Köpenick, including Sonnenallee
South, Baumschulenweg, and the former industrial area
of Schöneweide [28], which is enjoying a new lease on
life thanks to a university and the factory lofts, which are
now occupied by artists. Somewhat less expensive again
is southern Neukölln, which is well connected by the un-
At the bottom of the rental rankings are large, postwar satellite town areas, which are poorly connected to
the city centre: Märkisches Viertel in the northern outskirts [32], Hellersdorf and Marzahn [15] to the east and
the high-rise areas of Spandau, Falkenhagener Feld and
Heerstraße North [07] near the western outskirts of the
capital. These are the only areas in the city where the median asking rent remains significantly below €6.50 per
square metre. Here too, asking rents have risen. However,
these will remain areas of affordable housing.
The now reinvigorated residential development activity in
Berlin is unlikely to materially shift the balance between
districts or relieve the surplus demand in the overall market to the benefit of prospective tenants. New-build activity is too weak in relation to the size of the city and
growth in population and household numbers. However, it
is breathing new life into certain areas with large derelict
sites. This is currently true of the area to the north of the
main railway station, the adjoining area to the east around
Chausseestraße and the former border areas between
Mitte and Kreuzberg. In the medium term, there should
also be pockets of intensive new-build activity in outer
districts, such as Schöneweide, Lichterfelde South and
Lichtenberg. All of this will reduce the tension in the market. However, this tension will remain high over the coming years owing to sustained high net migration in Berlin.
RENTS RISING THROUGHOUT THE CITY, NO TREND REVERSAL EXPECTED
Rental levels in Berlin are still below those in other major cities. However, the capital has been gaining ground
in recent times. Population and household numbers as well as purchasing power (which is still below the
German average) are growing, ensuring high demand for housing. While rents initially rose exclusively in city
centre locations and trendy central districts, this trend is now increasingly spreading outwards and is even
reaching peripheral locations. There is no foreseeable end to the rental growth since the city’s population is
likely to continue growing more quickly than the supply of housing. New-build activity is increasing but cannot
keep pace with the rise in demand.
027
CITY PROFILE
n
BERLIN
Asking Rents in BERLIN 2015
City area
[01] Alt-Hohenschönhausen, Weißensee East
[02] Alt-Schöneberg, City Hall, Crellestraße, Schöneberger Insel,
Viktoria-Luise-Platz, Bayerischer Platz and Winterfeldtplatz
[03] Britz West, Buckow West, Rudow, Buschkrugallee, Johannisthal
[04] Charlottenburg North, Nauener Platz, Rehberge, Westhafen,
Gesundbrunnen, Soldiner Straße
[05] Chausseestr., Unter den Linden, Rosenthaler Platz,
Hackescher Markt
[06] Deutsche Oper, TU, Mierendorffplatz, Karl-August-Platz,
Alt Moabit West
[07] Falkenhagener Feld, Heerstraße/Wilhelmstraße
[08] Friedenau, Schildhornstraße, Fichtenberg, Rüdesheimer Platz,
Schmargendorf West
Number of
rental offers
Apartment size,
average in m2
836
64.0
8.00
1,184
61.0
10.26
1,112
64.1
7.50
2,098
56.0
8.59
2,575
79.0
13.00
1,194
63.0
9.88
401
69.2
6.29
1,408
68.3
9.40
[09] Friedrichsfelde North, Lichtenberg, Fennpfuhl
[10] Friedrichsfelde South, Central Marzahn, Biesdorf, Kaulsdorf,
Mahlsdorf
1,035
56.0
8.13
659
62.0
7.20
[11]
Friedrichshain
2,802
58.9
10.78
11.50
[12] Grunewald, Dahlem
[13] Hochmeisterplatz, Halensee, Volkspark Wilmersdorf, Güntzelstraße
[14] Johannisthaler Chaussee, Buckow East, Gropiusstadt
[15] Kaulsdorf North, Hellersdorf, Marzahn, Ahrensfelde
658
97.4
1,080
65.0
9.89
270
71.0
7.00
2,243
67.9
5.92
[16] Konradshöhe, Heiligensee, Frohnau, Hermsdorf, Alt-Tegel
[17] Köpenick, Adlershof, Friedrichshagen, Rahn- and Bohnsdorf,
Müggelheim, Grünau, Schmöckwitz
639
73.2
8.42
2,198
68.0
7.96
[18] Kreuzberg, Potsdamer Platz
2,602
57.0
11.43
[19] Lichterfelde, Unter den Eichen, Ostpreußendamm
928
71.4
8.50
[20] Marienfelde, Lichtenrade, Lankwitz South
[21] Moabit Southeast, Birken-, Beusselstraße, Stephanstraße,
Zoo, Bülowbogen
[22] Niederschönhausen, Central Pankow, Neumannstraße,
Ostseestraße, Weißensee West
929
68.9
7.32
1,318
55.0
9.50
1,876
63.5
8.89
[23]
Nord-Neukölln
2,029
50.0
10.00
[24] Pankow North, Malchow, Wartenberg, Falkenberg
1,189
70.5
7.44
[25] Prenzlauer Berg
2,769
62.0
11.08
[26] Rummelsburg, Karlshorst, Treptower Park
[27] Savignyplatz, Western Kantstraße, Sybelstraße, Olivaer Platz,
Ludwigkirchplatz, Tauentzienstraße
942
63.7
9.18
1,415
79.0
11.03
[28] Sonnenallee South, Baumschulenweg, Schöneweide
1,046
59.0
7.20
[29] Spandau (excl. Falkenhagener Feld, Heerstraße/Wilhelmstraße)
2,188
65.5
7.01
[30] Tegel (Southeast), Eichborndamm, Alt-Reinickendorf, Residenzstr.,
Borsigwalde, Wittenau
[31] Tempelhof, Mariendorf, Rixdorfer Straße, Rathaus Steglitz,
Lankwitz North
1,597
60.0
7.44
1,748
62.0
8.25
[32] Waidmannslust, Märkisches Viertel, Lübars
338
82.2
6.20
[33] Westend, Schloss Charlottenburg, Olympiastadion, Lietzensee
1,122
70.0
9.74
[34] Zehlendorf, Clayallee South, Wannsee, Nikolassee, Schlachtensee,
Gatow, Kladow
1,174
78.1
9.05
47,602
64.3
8.99
Berlin average
028
CITY PROFILE
n
BERLIN
32
24
16
30
22
15
01
07
04
29
25
21
33
05
09
11
06
13
12
10
18
27
02
26
23
28
08
34
31
03
19
17
14
20
5.92 – 7.03
7.04 – 7.44
7.45 – 8.05
8.06 – 8.55
8.56 – 9.32
029
9.33 – 9.89
9.90 – 11.00
11.01 – 13.00
CITY PROFILE
n
B R U N SW I C K
Brunswick: Growing demand in
a dynamic location
Lower Saxony’s second-largest city is enjoying growing population and employment. This is also
driving up previously modest rents. Tenants in Brunswick seeking a new apartment also appear
to have a strong preference for established, central locations.
Growth in Brunswick is driven by its know-how-intensive
and export-oriented industries and numerous educational institutions with a focus on technology. According
to an EU study, the city – with 27 research facilities and
250 high-tech companies – is one of the most researchintensive regions in Europe. The city forms a metropolitan
region together with Hanover, Göttingen, and Wolfsburg.
With more than 13,000 shops and stores, Brunswick is the
central location for retail in eastern Lower Saxony, as well
as for administrations as well as industry-related and private-sector service providers. When it comes to start-ups,
Brunswick is one of Germany’s leading cities. The Technical University and Brunswick University of Art have approximately 20,000 registered students. From its lowest
point in 2003, the population rose by almost 10,000 by
2014, with the number of employees subject to social
security contributions rising by 17.4 per cent between
2004 and 2014; faster than the national average (+14.7 per
cent) and neighbouring Hanover (+12.9 per cent). At the
same time, the unemployment rate has almost halved
since 2005, falling to an annual average of 6.8 per cent in
2014. Although the population is expected to decrease by
2.3 per cent between 2012 and 2030 according to the population projections of the BBSR, the number of households
is expected to increase by 1.2 per cent (Germany +3.0 per
cent) over the same period. Brunswick is a relatively
young city. The proportion of 18 to 44-year-olds is well
above the national average, while senior citizens, children
and young people account for a below-average proportion.
030
CITY PROFILE
n
B R U N SW I C K
Brunswick has the highest proportion of employment in the field of research
and development in Germany and is among the leading regions in Europe in terms
of intensity in this field with 7.3 per cent of GDP.
RENTS ON THE RISE FROM A LOW BASE
The above factors are having a significant effect on the
housing market. For one, median asking rents rose by
15.5 per cent between 2012 and 2015. However, the starting point was rather low and, consequently, the median figure of €7.16 per square metre is still lower than in comparable cities in southern and western Germany. This is not
least due to the greater availability of land for development
in Brunswick, which indirectly has also diluted demand in
the rental market. However, city centre locations are increasingly in demand and rental apartments are in higher
demand than homes for sale in the suburbs. The tightening
of the rental market is also reflected in the vacancy rate.
This fell from 3.6 per cent in 2009 to 2.0 per cent in 2014;
031
CITY PROFILE
n
B R U N SW I C K
the same level as that in neighbouring Hanover.
The highest median asking rents per square metre in
Brunswick are found in the eastern outskirts of the city,
which comprise Volkmarode, Schapen and other smaller
localities [12]. These areas are dominated by single-family
homes. With fewer than 80 listings during the period studied, the rental market is relatively small and the median
asking rent of €8.42 per square metre should, therefore, be
interpreted with caution. However, more wealthy tenants
are increasingly gravitating towards central locations and
the growth potential in and around Volkmarode seems exhausted for the time being.
HIGH-CLASS LIVING AROUND THE CITY CENTRE
The next most expensive area is located immediately to
the south and east of the city centre between the Bürgerpark and Prinzenpark [01]. The district close to the city
centre boasts a range of well-maintained old buildings and
green courtyards, with the median asking rent remaining in line with the previous year at €8.07 per square metre. This area is also home to the new-build St. Leonhards
Garten quarter, an urban planning sensation designed in
the basic shape of a Roman hippodrome. The next highest asking rents are found in the city centre [09] with an
average figure of €8.03 per square metre. The area bears
testimony to the growing interest in living in central, well-
developed areas and is simultaneously Brunswick’s most
vibrant submarket in terms of the number of listings. The
rental increase of 5.7 per cent in the centre is somewhat
more moderate than in the previous year. The area around
Wilhelmitor and Petritor East and West [14] close to the
city centre also shows asking rents significantly above the
Brunswick average, as do Ölper and Petritor North [07].
The latter area offers much charm due to its village-like atmosphere and proximity to the Ölpersee lake. On the other
hand, certain parts are somewhat isolated between two
motorways in the north west of Brunswick. The area has a
median asking rent of €7.64 per square metre. With fewer
than 100 apartments advertised during the period studied,
the small market comprising the widely dispersed villages
and residential areas of Völkenrode, Lehndorf, Lamme and
Kanzlerfeld [11] on the western outskirts of Brunswick has
an median asking rent some €0.22 lower. There are many
post-war buildings in the area, often of very high quality,
such as those in the extensive Kanzlerfeld residential area.
All other areas of Brunswick have median asking rents below the citywide average of €7.16 per square metre. The
most expensive of these, at €7.11, is also close to the city
centre. The area around the Nordbahnhof station, technical university and Hagenring [06], which is located to
the north and northeast of the city centre, features many
old buildings, particularly in the heritage-protected Sieg
friedviertel area, with buildings from the 1920s and 1930s.
Apartments in the mostly four-storey, detached Wilhelminian-era apartment buildings near the Oker on the
edge of the Altstadt (Old Town) are even more popular.
However, a number of major roads and university buildings
detract from the quality of the area. Asking rents in the
area declined by 1.0 per cent in 2015 and students in particular may well have reached the limits of their budget.
032
CITY PROFILE
n
B R U N SW I C K
DISTRIBUTION OF ASKING RENTS IN Brunswick 2014 AND 2015
2014
2.8
1.6
47.8
41.7
32.6
38.4
11.7
14.6
3.6
2.7
2015
1.5
1.0
50%
40%
30%
20%
10%
0%
under €5.00
€5.00 to €6.99
€7.00 to €8.99
€9.00 to €10.99
€11.00 to €12.99
€13.00 and over
Asking rents in Brunswick are of a moderate level. More than 40 per cent of the
residential properties on the lettings market were priced below the €7.00 per square
metre mark in 2015.
MIXED PICTURE IN THE OUTSKIRTS
The next highest rents are found in the area from Zuckerberg to Leiferde [04] in the south of the city, where the
median asking rent per square metre fell by as much as
2.0 per cent. The districts of Heidberg, Melverode and
Stöckheim are typical urban development areas from the
post-war decades on the outskirts of the city, characterised by ribbon development, terraced houses and detached, single-family houses. The district of Zuckerberg
to the north is a prestigious residential area with a small
rental market. Asking rents tend to vary quite strongly
due to the limited supply in the locality.
The residential areas and suburbs of Querum, Dibbesdorf,
Hondelage and Kralenriede [08] are located to the north
east. With their small-scale development and fewer than
100 listings during the period studied, these areas have a
small supply of rental apartments.
Brunswick
Lower Saxony
7.16
6.00
6.51
65.0
70.0
68.0
2.0
3.4
3.0
1.2
3.0
2.7
0.6
1.1
1.3
2)
Germany
033
CITY PROFILE
n
B R U N SW I C K
Asking Rents in Brunswick 2015
City area
[01] Bürgerpark, Prinzenpark
Number of
rental offers
Apartment size,
average in m2
8.07
216
72.0
[02] Geitelde, Broitzem, Stiddien, Rüningen, Gartenstadt, Am Südsee
99
64.0
6.67
[03] Harxbüttel, Thune, Wenden, Bienrode, Waggum, Bevenrode
61
65.0
6.75
[04] Leiferde, Stöckheim, Melverode, Heidberg, Zuckerberg
124
64.1
7.00
[05] Mascherode, Rautheim, Central train station
215
58.0
6.81
[06] Nordbahnhof, Old and new university district, Am Hagenring
227
65.0
7.11
[07] Ölper, Petritor North
191
60.0
7.64
7.00
[08] Querum, Dibbesdorf, Hondelage, Kralenriede, Querumer Forst
88
68.0
[09] Stadtkern, Hagen, Altewiek, Hohetor, Neustadt
323
67.0
8.03
[10] Timmerlah, Weinberg, Hermannshöhe, Rothenburg
218
73.0
5.80
[11] Völkenrode, Lehndorf, Lamme, Kanzlerfeld
82
66.5
7.42
[12] Volkmarode, Schapen, Riddagshausen, Gliesmarode, Pappelberg
78
73.0
8.42
121
56.8
6.56
[13] Watenbüttel, Veltenhof, Rühme
[14] Wilhelmitor, Petritor East and West
Brunswick average
With one exception, all other areas of Brunswick have median asking rents between €6.50 and €7.00 per square
metre. The area comprising Mascherode, Rautheim, and
the main railway station [05] at the southeastern end of
the city includes some attractive but somewhat isolated
residential areas with the second smallest rental apartments available in the city. Brunswick’s northernmost area
between Harxbüttel, Bienrode, and Bevenrode [03] is remote from the city centre and comprises a group of residential areas of average attractiveness. The scattered areas of Geitelde, Broitzem, Stiddien, Rüningen, Gartenstadt,
and Am Südsee [02] in the southwest are partly rural and
259
62.0
7.69
2,302
65.0
7.16
partly characterised by housing developments of the postwar period. The northwestern suburbs of Watenbüttel,
Veltenhof, and Rühme [13] are dominated by a high proportion of commercial use. The satellite area of Weststadt
and its surrounding vicinity [10] is at the bottom of the
rental rankings. Overall, the median asking rent in the area
stands at €5.80 per square metre.
RENTAL GROWTH POSSIBLE BUT THE MARKET IS NOT EXPECTED TO TIGHTEN SIGNIFICANTLY
Brunswick has enjoyed dynamic growth in population, employment and purchasing power for a number of years.
Accordingly, the city is witnessing increasing rental growth, albeit from a very low base. As a business location,
Brunswick is solid and future-oriented, which is likely to result in high demand in the future. However, the rental
market is not expected to tighten significantly. Home seekers in Brunswick have too many options to build a home
in the city region or to move out to the surrounding areas. However, if the trend towards city living continues in
Brunswick, a supply shortage in the city centre may at least drive rents up significantly further there.
034
CITY PROFILE
n
B R U N SW I C K
03
13
11
08
07
14
12
06
09
01
10
05
02
04
5.80 – 6.63
6.64 – 6.77
6.78 – 6.98
6.99 – 7.06
7.07 – 7.44
035
7.45 – 7.68
7.69 – 8.04
8.05 – 8.42
CITY PROFILE
n
BREMEN
Bremen: Rents remain moderate in
the Hanseatic City
In Germany’s 10th-largest city, housing is traditionally less expensive than in other metropolises.
However, due to the growth of the city’s economy and population, here too, supply is becoming
increasingly scarce and expensive – albeit at a more leisurely pace.
Bremen can look back on a rich history as a diocesan and
mercantile city. The city joined the Hanseatic League in
the 13th century, growing in economic strength and developing into a port and trade city in which international
trade, shipbuilding, and the steel industry have played a
significant role. The structural change that commenced in
the 1970s resulted in population declines and a sharp rise
in unemployment in the city, although there have been
positive trends in recent years. The number of employees
subject to social security contributions, for example, increased by 11.5 per cent between 2004 and 2014. Bremen
owes this growth, inter alia, to its port, industries such
as aviation and aerospace, wind energy, maritime business and logistics as well as classic industrial large-scale
manufacturers of cars, food, and consumables. The population is also growing slightly. At the end of 2014, the city
had 551,767 inhabitants; a 1.4 per cent increase compared
with the end of 2011. This is exclusively attributable to
Bremen’s positive net migration. According to the population forecast for the period from 2012 to 2030, the population is expected to fall minimally. However, the number
of households is expected to rise by 1.2 per cent.
AN EAST-WEST AND A NORTH-SOUTH DIVIDE
The growth of the economy and population also had a
modest impact on the housing market in 2015. The median asking rent per square metre grew by just 0.4 per
cent in 2015; significantly more weakly than in the previous year (+5.0 per cent). At €7.21 per square metre,
Bremen remains in just 16th place among the 29 cities
studied for this report. In terms of population, however,
the city is the 10th largest in Germany. Bremen has never
had a very expensive property market. Purchasing power
and income do not reach the high values of similarly large
036
CITY PROFILE
n
BREMEN
Bremen processes and handles the largest volume of coffee in the whole of
Germany. Almost every second coffee bean processed in Germany passes through
the port of Bremen.
cities such as Frankfurt, Stuttgart and Dusseldorf. Furthermore, prospective tenants have good alternatives
in the wide surrounding areas of Lower Saxony. For all
of these reasons, rents are not expected to grow significantly going forward.
Within the city, there are quite significant differences
between local asking rents. Essentially, there is an east-
west divide as well as a north-south divide, whereby the
areas with the highest asking rents are concentrated
in the city centre and to the east and the lowest are in
the north of Bremen. The highest median asking rent
of €8.67 per square metre is found in Bremen city centre [08], which also witnessed the strongest increase in
the city in 2015 of 8.4 per cent. The main advantage of the
037
CITY PROFILE
n
BREMEN
submarket is its central location, although there are certain disadvantages in terms of quality of living. The area is
characterised by service providers and suffers from heavy
traffic in some parts. The living environment is relatively
crowded and noisy by Bremen’s standards. The second
highest rents are found in the Schwachhausen [14] area,
which is close to the city centre as well as being adjacent
to the Bürgerpark, the Rhododendronpark, the Stadtwaldsee lake, and other green oases. Rental apartments
in Schwachhausen are mostly found in smaller apartment buildings, often surrounded by landscaped areas. It
is almost self-evident that, on average, the second largest apartments in the city are found in Bremen’s prestige
district, where the average apartment size is 73.3 square
metre. The average size of apartments on the market is
only greater in the relatively small Oberneuland [10] market. The combination of high asking rents and large living
spaces in Schwachhausen produces particularly high total
costs for tenants seeking to move into a new apartment.
However, overall, the relatively high rental costs combined with an extensive supply in the district have dampened rental growth. In each of the last three years, the
median asking rent in Schwachhausen has only risen by
around 1 per cent.
POPULAR MARKETS CLOSE TO THE CITY CENTRE
The third-highest median asking rent in the city of
€8.31 per square metre is found in the Östliche Vorstadt [13] of Bremen, which are surrounded by the city
centre, the River Weser, the railway line to the main station, and St.-Jürgen-Straße. The area is dominated by the
narrow “Bremer Haus” terraced houses with small gardens, which often date back to the Imperial Era. The area
close to the city centre is highly urbane in character. The
social structure has a vibrant mix.
In terms of the median asking rent, Findorff [03] ranks
fourth with an average of €8.25 per square metre. The district is situated to the north of the city centre and to the
west of the Bürgerpark. This area, too, is characterised
by Bremer Haus architecture, although often more recent
than that in the eastern suburbs. Near to the Utbremer
Ring, there are numerous multi-storey buildings from the
post-war period. Overall, the smallest rental apartments
on the Bremen market are found in Findorff along with the
Neustadt [09] and Woltmershausen [18]. The average
apartment size in these areas is just 58 square metres.
DEVELOPMENT IN THE PORT AREA
The next districts in the city centre rental rankings, with
asking rents between €7.66 and €7.90, are Oberneuland [10], Neustadt [09], and Horn-Lehe [06] including
the University of Bremen, all of which are some distance
from the city centre. Neustadt is the closest to the centre
on the western side of the River Weser between the city
centre and the airport.
Walle [17] is a special case. The area is situated to the
north of the centre and is traditionally regarded as a port,
industry and working-class district. However, more and
more high-quality living space is emerging in the port
area, making this district the second most expensive
prime market segment in Bremen. Asking rents in the
most expensive decile of accommodation on the market start at €12.00 per square metre. However, the median rent per square metre across all apartments on the
market in the area stagnated in 2015 following a strong
increase in the previous year and remains at €7.50 per
square metre.
038
CITY PROFILE
n
BREMEN
DISTRIBUTION OF ASKING RENTS IN BREMEN 2014 AND 2015
2014
5.1
6.1
40.2
39.1
36.0
34.0
13.4
14.5
3.8
5.1
2015
1.5
1.2
50%
40%
30%
20%
10%
0%
under €5.00
€5.00 to €6.99
€7.00 to €8.99
€9.00 to €10.99
€11.00 to €12.99
€13.00 and over
The proportion of high-priced rents starting from €9.00 in Bremen in 2015 was
only slightly above the previous year’s figure. Three quarters of asking rents fall
within a price range of €5.00 to €8.99.
In all other districts of Bremen, median asking rents are
significantly below the overall average value in the city
of €7.21 per square metre. Among these areas, the highest median asking rent is found in Woltmershausen [18],
to the west of the city centre and on the other side of
the River Weser, at €6.75 per square metre, followed by
Obervieland [11] in the south of the city. The areas of Osterholz [12] and Vahr [15] are also relatively decentralised, in the southeast of the city. Osterholz was previously
disadvantaged by the high-rise area of Tenever. However, the structure of the area has since been improved by
demolitions of multi-storey buildings, giving way to a better maintained living environment. Median asking rents in
Osterholz have risen by 17.4 per cent over the last three
years. Vahr is known as a monotonous residential area
from the post-war period. However, it has now integrated
itself well into the city and is popular as a low-priced and
green residential location.
Bremen
Federal State Bremen
Germany
7.21
6.57
6.51
64.0
63.3
68.0
2.2
3.1
3.0
2.0
1.8
2.7
1.4
1.2
1.3
2)
039
CITY PROFILE
n
BREMEN
Asking Rents in BREMEN 2015
City area
Number of
rental offers
Apartment size,
average in m2
[01]
Blumenthal
466
65.5
5.63
[02]
Burglesum
348
64.0
6.08
[03]
Findorff
344
58.0
8.25
[04]
Gröpelingen
445
58.7
5.67
[05]
Hemelingen
249
60.0
6.16
[06]
Horn-Lehe
382
68.0
7.66
[07]
Huchting
234
64.2
6.22
[08]
Mitte
8.67
452
63.3
[09]
Neustadt
776
58.0
7.89
[10]
Oberneuland
100
85.5
7.90
[11]
Obervieland
189
68.4
6.67
[12]
Osterholz
324
68.2
6.52
8.31
[13] Östliche Vorstadt
760
60.0
1,057
73.3
8.65
448
63.0
6.48
[16]
Vegesack
529
68.0
6.00
[17]
Walle
455
65.0
7.50
[18]
Woltmershausen
206
58.0
6.75
Bremen average
7,764
64.0
7.21
[14]
Schwachhausen
[15]
Vahr
Bremen’s lowest-priced districts, with average figures below €6.10 per square metre, are found in the far north of
the city. In the traditionally industrial suburbs of Burglesum [02], Vegesack [16], Gröpelingen [04], and Blumenthal [01], many apartments are still offered for less than
€5.00 per square metre. In Gröpelingen, asking rents declined slightly in 2015 following a 6.5 per cent increase
in the previous year. Blumenthal is at the bottom of the
rental ranking. With an average of €5.63 per square metre, landlords’ quoting prices on new lettings there are the
lowest in Bremen.
MODERATE RISES IN RENTS FROM A LOW BASE
Bremen is not just a green city, but also a relatively inexpensive city in which to live. The city ranks just 16th in
terms of the median asking rent among the 29 cities featured in this report. However, the positive economic and
population growth has also led to a rise in demand for rental apartments in Bremen. Median asking rents per
square metre have recently risen by an average of some 3 per cent per year. Stronger increases have been particularly evident in the inexpensive parts of the city, while rental growth in the already expensive districts, excluding
the city centre, has recently been weak. The least expensive property on the market continues to be found in the
north of the city.
040
CITY PROFILE
n
BREMEN
01
16
02
04
06
17
18
03
10
14
08
15
13
09
07
05
11
12
5.63 – 6.01
6.02 – 6.17
6.18 – 6.49
6.50 – 6.71
6.72 – 7.60
041
7.61 – 7.89
7.90 – 8.30
8.31 – 8.67
CITY PROFILE
n
C H E M N I TZ
Chemnitz: Glimmer of hope for the market
but rents remain very low
Saxony’s third largest city is enjoying net migration and population growth for the first time
in a long time. This is also reflected in the residential market, although the market remains
characterised by a large oversupply and high vacancy rate.
For some 20 years, the population and employment market figures for the city of Chemnitz were predominantly
negative. The population fell by around 50,000 between
1990 and 2010 while the unemployment rate reached
a peak of 19.9 per cent in 1998. In recent times, however, the trends have reversed. Since 2006, the city has
regularly recorded net migration once again. The population rose by 1.2 per cent from the end of 2011 to the end
of 2014. Employment growth in Chemnitz has also been
positive. The city’s local and regional economy is primarily characterised by sectors of heavy industry, particularly toolmaking, textiles, automotive manufacturing, and
mechanical engineering. The solar industry has also discovered the city as a production location and the local
research landscape, in micro-systems technology for example, has seen positive growth. The number of employees subject to social security contributions increased by
6.3 per cent between 2004 and 2014. The unemployment
rate averaged 9.9 per cent in 2014; almost half the peak
level reached in 1998.
VACANCIES SLOWLY DECLINING
The trend reversal has only slowly manifested itself in the
residential market. Chemnitz recorded the lowest median asking rent per square metre and month of all 29 cities studied at €5.00. At the same time, the vacancy rate
remained high at 9.2 per cent in 2014, providing apartment-seekers with an ample supply, at least in terms of
quantity. However, more recently, the vacancy rate has
fallen moderately but continually, while the average median asking rent has also risen slightly. Nevertheless, the
market remains far from balanced in terms of supply and
demand. Even if the economy and population continue to
expand, the oversupply is likely to persist for a long time.
042
CITY PROFILE
n
C H E M N I TZ
After losing inhabitants for many years in an exodus from the city, net migration
has now been positive for nine years in succession. In 2014, net migration to the city
totalled more than 2,500 people.
The positive trend is also at risk. The greatest obstacle to
long-term favourable demographic growth is the ageing
population in the city. The proportion of inhabitants aged
60 and over stood at 35 per cent at the end of 2014. By
way of comparison, the German average is just 27.4 per
cent. All other age groups are under-represented compared with the national average in Germany. Only the
proportion of 18-30-year-olds in Chemnitz is in line with
national figures. Chemnitz is also bottom of the rankings
in terms of population and household projections for the
29 cities analysed. Not only is the population expected to
contract by 17.5 per cent by 2030, the number of households is also projected to decline by 15.4 per cent (Germany: +3.0 per cent).
043
CITY PROFILE
n
C H E M N I TZ
NARROW RANGE OF RENTS WITHIN THE CITY
The differential between rents in the various districts of
Chemnitz is lower than in other cities. Asking rents in the
least and most expensive areas of the city differ minimally by just €0.86 per square metre. The highest median asking rents in 2015 were found in the area comprising Rabenstein, Siegmar, and Reichenbrand [10] in the
west of the city. With its attractive villas and old buildings, good transport links to the city centre and a variety
of recreation areas, such as the Rabenstein reservoir and
the Rabensteiner Forest, this is one of the most soughtafter residential locations in the city. However, by national
comparison, landlords’ asking rents of €5.37 in the area
are somewhat modest.
Next in the rental rankings is another area in the outskirts,
also in the western part of Chemnitz. This area comprises the somewhat rural suburbs of Grüna and Mittelbach [07] with a median asking rent of €5.32 per square
metre. Owing to the small-scale development in this
area, however, supply of rental apartments is someone
low, meaning that quoting figures have not shown any
clear trend in recent years. The area comprising Adelsberg and Gablenz [01] in the east of the city is above average for Chemnitz in terms of median asking rents. The
highlight of Gablenz is the garden city development, built
in the early 20th century and since refurbished in line
with historic preservation directives, which features large
amounts of green space, a high quality of urban living
space and impressive architecture. The district also in-
cludes an area of Plattenbauten (slab construction) from
the former East Germany, although the majority of this
comprises low-rise rows of housing. Located to the east
of Gablenz is Adelsberg, an area characterised by smaller
residential areas and villages.
MODERATE DEMAND FOR ART NOUVEAU PROPERTY
Sixth in the local rental statistics is an area near the
city centre; the historic and exclusive residential area
of Kaßberg [09] immediately west of the city centre.
The area registered a median asking rent of €5.08 per
square metre in 2015, representing an increase of a mere
€0.01 compared with the previous year. The Kaßberg area,
which emerged in the second half of the 19th century and
retains its original image in large areas, is one of the largest areas from the Wilhelminian and Art Nouveau periods
in Germany. Several hundred houses are jointly protected
as a conservation area.
Next in the rankings is the area comprising Bernsdorf and
Lutherviertel [03], southeast of the city centre. The area is
characterised by residential development from the interwar and post-war periods and has the largest rental market in the city in terms of properties listed. The median
asking rent in 2015 stood at €5.01 per square metre which,
like rents in Kaßberg, rose by only €0.01 compared with
the previous year.
To the west of Kaßberg are the areas of Altendorf,
Schönau, and Rottluff [02], where asking rents also average €5.01 per square metre. Altendorf is characterised
by a large number of post-war apartment buildings, while
Schönau comprises a mix of village structures, owner-
occupier areas and commercial areas typical of Chemnitz.
Rottluff, to the north of Schönau fits a similar description.
044
CITY PROFILE
n
C H E M N I TZ
DISTRIBUTION OF ASKING RENTS IN CHEMNITZ 2014 AND 2015
2014
7.5
6.5
42.7
41.1
42.1
44.2
6.1
6.6
1.3
1.3
2015
0.2
0.3
50%
40%
30%
20%
10%
0%
under €4.00
€4.00 to €4.99
€5.00 to €5.99
€6.00 to €6.99
€7.00 to €7.99
€8.00 and over
Asking rents in Chemnitz do not show a great deal of variance. Almost 85 per cent
of residential lettings are advertised between €4.00 and €5.99 per square metre.
Asking rents above €7.00 are extremely rare.
The median asking rent per square metre in Schloßchemnitz [12], to the northwest of the city centre, stands at exactly €5.00; the overall average for the city. The area is
characterised by a mix of residential and commercial uses
as well as cultural and leisure amenities. The same rental
levels are found in the area comprising Kappel, Kappell
enberg, Stelzendorf, Markersdorf, Alt-Chemnitz, Harthau,
Reichenhain, and Erfenschlag [08] as well as in the centre [15]. The city centre was heavily damaged in the war
and was redeveloped to a low density in the former GDR
era, so that the urban qualities of other city centres did
not develop here. Subsequent densification with shopping
centres has not done much to increase the attractiveness
of the centre as a residential location. Asking rents in the
northern suburbs of Borna-Heinersdorf, Fürth, Ebersdorf,
Hilbersdorf, Glösa-Drainsdorf [04], and Wittgensdorf [14],
as well as in the far south of the city in Einsiedel and Klaffenbach [05], are below the citywide average.
Chemnitz
Saxony
Germany
5.00
5.39
6.51
59.0
60.2
68.0
9.2
6.5
3.0
1.7
1.5
2.7
0.8
0.6
1.3
2)
045
CITY PROFILE
n
C H E M N I TZ
Asking Rents in CHEMNITZ 2015
City area
Number of
rental offers
Apartment size,
average in m2
[01] Adelsberg, Gablenz
438
51.0
5.29
[02] Altendorf, Rottluff, Schönau
566
57.8
5.01
[03] Bernsdorf, Lutherviertel
1,488
57.5
5.01
[04] Borna-Heinersdorf, Furth, Ebersdorf, Hilbersdorf, Glösa-Draisdorf
1,158
59.0
4.89
244
56.0
4.80
[06] Euba, Kleinolbersdorf-Altenhain
24
70.0
5.09
[07] Grüna, Mittelbach
[08] Kappel, Kapellenberg, Stelzendorf, Markersdorf, Alt-Chemnitz,
Harthau, Reichenhain, Erfenschlag
90
61.0
5.32
1,004
57.0
5.00
[09]
Kaßberg
1,087
62.4
5.08
243
59.8
5.37
33
68.5
5.20
[12]
Schloßchemnitz
1,022
59.9
5.00
[13] Sonnenberg, Yorckgebiet
1,445
59.6
4.51
47
58.0
4.69
[05] Einsiedel, Klaffenbach
[10] Rabenstein, Siegmar, Reichenbrand
[11]
Röhrsdorf
[14]
Wittgensdorf
[15]
Centre
Chemnitz average
The area comprising Sonnenberg and Yorckgebiet [13]
to the east of the city centre was at the lower end of the
rental scale in Chemnitz, in keeping with the previous year,
with a median asking rent of €4.51 per square metre, reflecting a decrease of 0.2 per cent compared with the previous year. Sonnenberg is a densely developed area dating
from the Wilhelminian period with many narrow backyards, few green spaces and little appreciation as a residential location despite its proximity to the city centre and
railway station. The area features many residential build-
547
63.0
5.00
9,436
59.0
5.00
ings that have not been refurbished since the former GDR
era and has a high vacancy rate and numerous demolitions. Immediately to the east is Yorckgebiet, known colloquially as “Yorckmassiv” in reference to large concrete
slabs used in the development of the area in the 1970s.
RAYS OF HOPE AFTER A LONG CRISIS
The population, employment and the residential market in Chemnitz have all stabilised after a prolonged crisis.
Indeed, there is even an upward trend at present. However, rental levels remain low and the vacancy rate high.
Positive growth is currently witnessed predominantly in green suburban areas, often enhanced by historic development. Conversely, central locations are of less interest to many people in Chemnitz. A growing problem in the
longer term is the significant ageing of the city’s population and the declining number of households. The latter
threatens to cause further population decreases, although the current positive net migration may offset the negative natural population development.
046
CITY PROFILE
n
C H E M N I TZ
14
04
11
12
02
09
13
15
06
01
10
03
07
08
05
4.51 – 4.77
4.78 – 4.95
4.96 – 5.00
5.01 – 5.01
5.02 – 5.06
047
5.07 – 5.15
5.16 – 5.30
5.31 – 5.37
CITY PROFILE
n
CO LO G N E
Cologne: Economic growth and rents
on the rise
The largest city on the Rhine draws on its advantageous location, dynamic business sectors and
positive urban characteristics. However, the strong, long-term rental growth in the city centre has
now subdued, while the outskirts are catching up.
As one of the oldest cities in Germany, Cologne can look
back over a history of some 2,000 years. With its favourable location on the Rhine and major trade routes, Germany’s fourth-largest city was able to achieve national
importance at an early stage and was the largest city in
German-speaking territory in the High Middle Ages. It was
also during this period that the foundation stone was laid
for the most famous landmark in the city today, Cologne
Cathedral, although construction would not be completed
for several centuries. Today, the city is known to visitors
and inhabitants alike as a vibrant and cosmopolitan metropolis, whose carnival, breweries and dialect are well
known far beyond the city limits. Cologne’s modern economic structure is diverse. The most important sectors in
the city include vehicle manufacturing, energy, chemicals,
food, publishing, media, and insurance. Cologne is also
home to one of the largest universities in the state.
MOST EXPENSIVE CITY IN THE FEDERAL STATE
The city on the Rhine has enjoyed significant population
growth for a number of years. The population rose sharply
by 3.3 per cent from the end of 2011 to the end of 2014 and
has now passed the million mark, standing at 1,046,680.
Projections, which are now considered too conservative
in some respects, indicate further growth for the coming years. Compared to 2012 levels, the population is expected to grow by 1.9 per cent by 2030, while the number of households is set to increase by as much as 5.4 per
cent. The rental apartment market in Cologne clearly reflects the consequences of continued growth. The residential vacancy rate in Cologne fell from 2.2 to 1.1 per cent
between 2009 and 2014. Asking rents continue to rise.
The median of €9.86 per square metre is the highest of
all cities in North Rhine-Westphalia. On the whole, landlords’ asking rents on new lettings in 2015 were at least
048
CITY PROFILE
n
CO LO G N E
Cologne’s carnival season generates average revenues of more than
€460 million per year. This amount is almost equivalent to the annual turnover
of FC Bayern Munich.
2.0 per cent higher compared with the previous year in
11 of the 19 districts of Cologne studied. Central locations
and exclusive residential areas dominated the high-priced
neighbourhoods in Cologne, with a median asking rent
above €10.00 per square metre. The areas around Neu
stadt North (Belgisches Viertel, Friesenviertel, Stadtgarten,
Bahnhof West) and Neustadt South [15], which wraps half-
way around the Altstadt (Old Town) district to the west
and south, lead the charts. Many of the roads are congested and the back courtyards crowded. However, buyers
are willing to accept such limitations to benefit from the
central location and urban lifestyle. Even the least expensive decile of apartments here reached asking rents of up
to €9.38 per square metre in 2015.
049
CITY PROFILE
n
CO LO G N E
CITY CENTRE: BEST LOCATION, SOME
DISADVANTAGES
The median asking rent in the adjacent business district of
the city comprising the cathedral area, Neumarkt and Heumarkt, Schildergasse, Hoher Straße, Alter Markt, and the
southern part of the Altstadt [01], including the Griechen
marktviertel, Kapitolviertel and Pantaleonsviertel areas,
stood at €11.29 per square metre; €0.53 lower than in
Neustadt North and Neustadt South. The equivalent figure for another part of Altstadt North and Neustadt North
comprising the main train station, Eigelsteinviertel, and
the Agnesviertel, Mediapark, and Flora [02] areas, which
form part of Neustadt North, was a further €0.23 lower at
€11.06. These areas are centrally located, and development
density is often extremely high. This has some negative
impact on the value of residential property since the direct
surroundings are often characterised more by commercial
than residential uses.
URBAN NEIGHBOURHOODS: GREEN AND CLEAN
Two green areas in western and southwestern Cologne, featuring villas and well-kept apartment buildings, show the same median asking rents as those in the
City submarket areas. One of these is the area comprising Müngersdorf, Braunsfeld, and Lindenthal (West) [14].
Development is patchy, leafy, relatively low in density and
well maintained. However, the district is not limited to
single-family houses. There were more than 900 listings
in the lively rental market during the reporting period. The
median asking rent here stood at €11.20 per square metre in 2015. This is evidently a ceiling for the time being
since the previous year’s figure was 0.4 per cent higher.
The other area comprises neighbouring Klettenberg and
Sülz [11], where landlords demanded an average of €11.16.
The districts cited connect the southwest of the city to
the inner green belt. The cityscape is dominated by urban perimeter block development, commonly only with
moderate build height. It is possible to enjoy inner-city
life without the disadvantages of core areas, albeit with
small-scale and locally oriented infrastructure. The southeastern area consisting of Zollstock, Raderberg, Bayenthal, Marienburg, Rodenkirchen, and Hahnwald [19] is
regarded as more distinguished and exclusive. However,
there are also large amounts of simple post-war construction and residential high-rises and the districts are slightly
further out of the centre, resulting in a median asking rent
slightly below that of Klettenberg and Sülz at €10.61 per
square metre.
A RISING STAR WITH INDUSTRIAL TRADITION
Two former industrial districts close to the city centre are
now more expensive than Zollstock and its surrounding vicinity. In Deutz [06], on the right bank of the Rhine,
the median rent now stands at €10.76 per square metre.
Many residents of and visitors to Cologne know Deutz
only as a place of transit, trade fairs, administrative buildings and, in the Cologne Arena, an event venue on the
“wrong side” of the Rhine. However, it is also in places
a rather homely residential area, albeit somewhat plain
due to its many post-war buildings. The lack of beauty is
compensated by its proximity to the Altstadt district just
across the Rhine bridges as well as the excellent transport infrastructure. Only slightly less expensive, with a
median asking rent of €10.70, is the formerly industrial
and now gentrified area comprising Ehrenfeld and Neuehrenfeld [07]. In the north of the city, the area comprising Niehl, Riehl, Weidenpesch, and Longerich [16] shows
a median asking rent of exactly €10.00.
050
CITY PROFILE
n
CO LO G N E
DISTRIBUTION OF ASKING RENTS IN COLOGNE 2014 AND 2015
2014
2.2
1.9
17.5
14.3
34.4
35.4
28.5
30.9
12.5
12.7
2015
4.8
4.8
40%
30%
20%
10%
0%
under €6.00
€6.00 to €7.99
€8.00 to €9.99
€10.00 to €11.99
€12.00 to €13.99
€14.00 and over
Cologne is among the most expensive German markets. Almost half of apartments
on the market in 2015 cost more than €10.00 per square metre. The proportion
priced below €8.00 contracted significantly.
Cologne’s districts with median asking rents below
€10.00 per square metre are currently limited to those
with structural or statistical peculiarities. Mühlheim [13],
on the right bank of the Rhine, used to be heavily industrial in character and was still recently regarded an insider
tip. Between 2012 and 2015, the district saw the highest
increase in asking rents in the city of 19.5 per cent. The
7.0 per cent increase in 2015 alone also represented the
strongest growth across all areas of Cologne. Landlords
are now demanding an average of €9.67 per square metre.
Dynamic growth was also seen in the area between Deutz
and the eastern outskirts comprising Kalk, Höhenberg,
Vingst, Humboldt-Gremberg, Poll, Ostheim, Rath-Heumar,
Merheim, and Brück [10], with an increase of 4.1 per cent
to €8.82 per square metre.
Only two areas of Cologne reported a median asking rent
significantly below €8.50 per square metre in 2015. The
areas in question were Cologne North [17], including the
Cologne
North Rhine-Westphalia
Germany
9.86
6.14
6.51
67.0
69.9
68.0
1.1
3.1
3.0
3.3
2.4
2.7
2.5
1.3
1.3
2)
051
CITY PROFILE
n
CO LO G N E
Asking Rents in Cologne 2015
City area
Number of
rental offers
Apartment size,
average in m2
[01] Altstadt North (Dom, Neu-, Heumarkt, Schildergasse,
Hohe Straße, Alter Markt), Altstadt South
450
58.0
11.29
[02] Altstadt North (Central train station, Eigelstein),
Neustadt North (Agnesviertel, Mediapark, Flora)
464
63.0
11.06
[03] Bickendorf, Ossendorf, Vogelsang, Bocklemünd-Mengenich,
Lövenich, Widdersdorf, Weiden (West)
609
73.0
9.20
[04] Bilderstöckchen, Pesch, Lindweiler, Heimersdorf
352
67.5
8.87
[05] Buchforst, Buchheim, Holweide
572
65.9
8.53
[06]
Deutz
195
65.0
10.76
[07] Ehrenfeld, Neuehrenfeld
699
62.0
10.70
[08] Flittard, Stammheim, Höhenhaus, Dünnwald, Dellbrück
576
70.0
8.58
[09] Junkersdorf, Marsdorf, Weiden (East)
460
76.0
9.89
1,460
65.0
8.82
[11] Klettenberg, Sülz
601
61.0
11.16
[12] Meschenich, Immendorf, Godorf, Sürth, Weiß
413
77.0
9.49
[13]
Mülheim
432
60.0
9.67
[14] Müngersdorf, Braunsfeld, Lindenthal (West)
911
70.0
11.20
1,130
63.0
11.82
[16] Niehl, Riehl, Weidenpesch, Longerich
998
65.0
10.00
[17]
North
353
72.0
8.00
1,089
69.1
8.06
928
74.0
10.61
12,692
67.0
9.86
[10] Kalk, Höhenberg, Vingst, Humboldt-Gremberg, Poll, Ostheim,
Rath-Heumar, Merheim, Brück
[15] Neustadt North (Belgian Quarter, Friesenviertel, Stadtgarten,
Western train station), Neustadt South
[18]
Southeast
[19] Zollstock, Raderb., Bayenthal, Marienb., Rodenkirchen, Hahnwald
Cologne average
satellite town of Chorweiler, and the southeast of the
city [18] near the airport. Both are suburban areas with
many post-war buildings, which have neither strong urban nor scenic qualities.
A MARKET WITH GROWTH POTENTIAL – AND CERTAIN RISKS
The vibrant and cosmopolitan city on the Rhine is a highly attractive place to live and work for current and future
inhabitants, tourists, and investors. The population of Cologne has risen accordingly for years and the residential
market is characterised by significant surplus demand. Today, Cologne is the most expensive city in North RhineWestphalia in terms of asking rents and has left the state capital Dusseldorf far behind. However, despite the already high levels, asking rents in the city continue to rise and the average figure is approaching the €10.00 mark,
which is almost at the level of Hamburg. In view of the positive conditions, the trend to date is not expected to
reverse during the coming years.
052
CITY PROFILE
n
CO LO G N E
17
04
08
16
13
03
05
07
09
14
02
01
06
10
15
11
19
12
18
8.00 – 8.54
8.55 – 8.84
8.85 – 9.42
9.43 – 9.89
9.90 – 10.63
053
10.64 – 10.91
10.92 – 11.19
11.20 – 11.82
CITY PROFILE
n
D O RTM U N D
Dortmund: Buoyant market with rising
asking rents
The transformation from an industrial metropolis to a service location is also reflected in the housing
market. Asking rents are rising from a relatively low base in both attractive locations in the south as
well as more modest districts in the north of the city.
Although the industrial core is still of importance to the
city, the structural change from a traditional metals and
mining city in the Ruhr area into a services centre is particularly striking in Dortmund. Former industrial sites are
giving way to numerous ambitious development projects,
such as the Phoenix-See and its surroundings on a former
steel plant site. The dominant sectors in Dortmund today are commerce, healthcare and logistics. The number
of employees subject to social security contributions increased by 12.8 per cent between 2004 and 2014, which
was primarily driven by the afore-mentioned sectors. The
university and adjacent technology park, one of the oldest
and most successful in Germany, play an important role
in this context. Following years of decline, the population
in Dortmund has been rising again since 2012, reaching
580,511 inhabitants at the end of 2014. The unemployment rate, which stood at 17.5 per cent in 2005, consoli-
dated to 13 per cent between 2009 and 2014. These developments are also boosting the housing market. The
median asking rent per square metre per month increased
by 2.9 per cent in 2015. However, the median of exactly
€6.00 per square metre is still rather low, especially considering that Dortmund is Germany’s eighth largest city
by population. The vacancy rate decreased from 3.1 per
cent to 2.6 per cent between 2009 and 2014.
CENTRE AND SOUTHWEST LEADING THE CHARGE
The distribution of rents within the Dortmund city area
show two prominent trends. Asking rents are, for the
most part, significantly higher in central locations compared with peripheral areas and are also higher in the
rather loosely developed areas to the south and east than
they are in the more industrial north and west of the city.
The highest median asking rent of €7.06 per square me-
054
CITY PROFILE
n
D O RTM U N D
Dortmund’s Westenhellweg is one of the busiest shopping streets in Germany.
Statistically, almost one in two Dortmund residents uses the Westenhellweg once
per day on weekends.
tre is recorded in the city centre [03] and, heading south
and southwest, the district of Kreuzviertel and residential
areas to the east of the Westfalenhalle as well as the Kaiserbrunnen district to the east of the city centre. The local
infrastructure and transport links are excellent in these
areas. The largely preserved perimeter block development
provides the highest quality of urban living in the city.
The mostly leafy and, in parts, scenic southwest comprising the districts of Hombruch, Renninghausen, Barop,
Eichlinghofen, and Kirchhörde [06] has worked its way
into second place in the rankings. The median asking rent
here rose by 4.5 per cent to €6.97 in 2015; the second
highest increase in the city. This area is largely dominated
by single-family houses and small apartment buildings.
055
CITY PROFILE
n
D O RTM U N D
The former mining district of Hombruch has particularly
good transport links by tram and S-Bahn. Dortmund University and the renowned technology park are located on
the western edge of this area.
The area to the east of the city centre comprising the
eastern city centre, Wambel, Körne, and the popular Gartenstadt area on both sides of the Westfalendamm [10]
arterial route shows the third-highest asking rent of
€6.44 per square metre. This location is less central than
the prime locations of the western city centre. Development in Körne is not particularly dense, while Wambel is
partly suburban in character with large amounts of green
space but also with a somewhat more limited infrastructure than in the western part of the city centre.
FROM STEELWORKS TO A LAKESIDE LANDSCAPE
The south of Dortmund includes the districts of Hörde,
Syburg, Wellinghofen, Holzen, and Loh [07]. The median asking rent of €6.37 per square metre in the area is
the fourth highest in Dortmund. Apart from the centre of
Hörde with its small-town atmosphere, the area is dominated by scattered apartment blocks and single-family houses. However, Clarenbach also comprises various
high-rise buildings constructed in the 1970s. The south of
this area is very rural, with village-like settings as well as
beautiful hills and slopes near the Ruhr. Hörde is the setting of Dortmund’s most spectacular development project. The former Hoesch site has been transformed into
the Phoenix-See lake along with an attractive surrounding
residential area, including numerous villas on the banks of
the lake, which has been sought-after since the re-development. The area is highly likely to witness further positive development over the coming years, with some properties in the area already listed at asking rents of more
than €10.00.
The districts of Aplerbeck, Schüren, Sölde, Sölderholz,
Berghofen, and Benninghofen [01] are located further to
the east in the south of Dortmund. Again, development is
dominated by a mix of leafy residential areas, commercial
uses and open countryside. The development density is
mainly fragmented with single and two-family houses and
terraces. There are also smaller apartment buildings with
two to four storeys, often in ribbon developments. The
median asking rent of €6.02 per square metre reflects the
distance from the city centre and the often suburban and
scattered infrastructure.
The far eastern perimeter of the city comprises the districts of Brackel, Wickede, Asseln, Kurl, and Husen [02].
The area is primarily characterised by sprawling estates
and roads interspersed with commercial uses lined by
fields and meadows. The atmosphere is neither urban nor
rural in character and the median asking rent of €5.73 is
below the average for the city.
All of the above areas of Dortmund are situated in the
central, southern, and eastern areas of the city. The following are located to the north and west. Pit closures in
the former mining districts to the north of the city centre
are now events of the distant past. Former workers’ villages serve as a reminder with their historical flair and
careful modernisation. At the top of the rental rankings in
this part of the city is the area comprising Eving, Brechten, and Lindenhorst [05] with a median asking rent of
€5.80 per square metre. This is followed by the residential areas of Huckarde, Jungferntal, Deusen, Kirchlinde,
Hangeney, Marten, and Germania [08] to the northwest of the centre. The historical development of the city
around mines, factories and villages is very typical for the
Ruhr area. The next highest asking rents are found in the
area comprising Lütgendortmund, Bövinghausen, and
056
CITY PROFILE
n
D O RTM U N D
DISTRIBUTION OF ASKING RENTS IN DORTMUND 2014 AND 2015
2014
1.7
1.4
36.9
32.5
39.9
41.3
15.9
17.2
3.7
4.5
2015
1.9
3.1
50%
40%
30%
20%
10%
0%
under €4.00
€4.00 to €5.49
€5.50 to €6.99
€7.00 to €8.49
€8.50 to €9.99
€10.00 and over
The proportion of asking rents above €7.00 per square metre in Dortmund
showed a further significant increase in 2015. Almost a quarter of the listings were
above this threshold.
Westrich [11] with an average of €5.61. The area consists
of relatively peripheral residential areas with historic industrial cores but also some scenic intermediate areas
such as the Dellwig river valley. The median asking rent is
just €0.11 lower in the northern city centre, which includes
the port [09]. Viewed from the city centre, the area is located north of the railway lines and is characterised by
some social tension. Students and young professionals
also tend to live here. Indeed, the area is becoming more
attractive due to its central location and median asking
rents increased by 10.0 per cent from 2012 to 2015. However, it would be an exaggeration to speak of gentrification here.
The quality of living in Dorstfeld, Kley, Oespel, and Wisch
lingen [04] is somewhat mixed. There are attractive villages and charming areas such as Wischlingen leisure
park, but also many commercial sites, highways and hap-
Dortmund
6.00
6.14
6.51
64.0
69.9
68.0
2.6
3.1
3.0
1.6
2.4
2.7
1.0
1.3
1.3
2)
Germany
057
CITY PROFILE
n
D O RTM U N D
Asking Rents in DORTMUND 2015
City area
Number of
rental offers
Apartment size,
average in m2
[01] Aplerbeck, Schüren, Sölde, Sölderholz, Berghofen, Benninghofen
702
70.0
6.02
[02] Brackel, Wickede, Asseln, Kurl, Husen
694
65.0
5.73
1,114
63.0
7.06
[04] Dorstfeld, Kley, Oespel, Wischlingen
282
62.0
5.32
[05] Eving, Brechten, Lindenhorst
502
58.1
5.80
[06] Hombruch, Renninghausen, Barop, Eichlinghofen, Kirchhörde
755
65.0
6.97
[07] Hörde, Syburg, Wellinghofen, Holzen, Loh
[08] Huckarde, Jungferntal, Deusen, Kirchlinde, Hangeney, Marten,
Germania
896
66.0
6.37
900
60.0
5.64
[09] Innenstadt North, Harbour
753
60.0
5.50
[10] Innenstadt East, Wambel, Körne, Westfalendamm, Gartenstadt
571
65.0
6.44
[11] Lütgendortmund, Bövinghausen, Westrich
[12] Mengede, Nette, Alte Kolonie, Bodelschwingh, Westerfilde,
Oestrich
383
65.0
5.61
569
65.0
5.28
[03] City East and West, Westfalenhalle, Kaiserbrunnen, Ruhrallee
[13] Scharnhorst, Derne, Lanstrop, Hostedde
Dortmund average
hazard brownfield sites. The median asking rent here
stands at €5.32 per square metre. The lower end of the
rental rankings is occupied by the northeast and northwest of the city, which is fragmented by roads, industry,
smaller commercial uses and logistics as well as heaps
and wasteland. However, there are also some interspersed attractive residential and green areas. The sec-
462
70.0
5.15
8,583
64.0
6.00
ond lowest median asking rent of €5.28 is found in the
north-western districts of Mengede, Nette, Alte Kolonie, Bodelschwingh, Westerfilde, and Oestrich [12]. The
northeast, comprising Derne, Lanstrop and Hostedde [13]
as well as Scharnhorst, which also includes the largest satellite settlement of Dortmund with more than
5,000 homes, is priced a further €0.13 lower.
ATTRACTIVE LOCATIONS AND AGEING DISTRICTS
Dortmund continues to carry the burden of de-industrialisation with high unemployment, numerous brownfield
sites and a plentiful supply of housing of basic and moderate quality and location on the market. On the other
hand, the city has laid the foundations for some promising and ambitious service sectors. Attractive housing for
employees in this sector is mainly located in the centre and, like other cities in the Ruhr area, in the south of the
city, which is clearly reflected in the prime asking rents. The greatest growth potential is also expected here in the
medium and longer term.
058
CITY PROFILE
n
D O RTM U N D
12
05
08
09
13
02
10
11
03
04
01
06
07
5.15 – 5.30
5.31 – 5.50
5.51 – 5.63
5.64 – 5.73
5.74 – 5.91
059
5.92 – 6.37
6.38 – 6.71
6.72 – 7.06
CITY PROFILE
n
DRESDEN
Dresden: High technology meets culture
Dresden has transformed itself from an industrial location to a city known for both high-tech and
culture. The city has one of the fastest growing and most attractive housing markets – and not just
among the former East German states.
The former seat of royal power impresses with its exciting
blend of tradition and modernity. Despite sustaining heavy
damage during the Second World War, many charming
historical or reconstructed blocks have been preserved
in the old town. The city, also known as “Florence on the
Elbe”, with its Frauenkirche or Church of Our Lady, the
Royal Palace, the Zwinger palace, the Semperoper opera
house, the Elbe palaces, Hellerau Garden City, and awardwinning, modern architecture attracts tourists and art lovers from all over the world. With an area comprising 62 per
cent forests and green spaces, Dresden is also a very green
city, with the particular attraction of the central Elbe floodplains. Thanks to modern, networked infrastructures, Dresden is easily accessible from all directions. Dresden not
only focused on culture and tourism, but also evolved into
a major European technology location. The catalysts for
the city’s dynamic economic development in what’s known
as “Silicon Saxony” include the fields of microelectronics, information and communication technology, as well
as new materials, nanotechnology, photovoltaics, life sciences and biotechnology. One in two chips manufactured
in Europe is produced in Dresden. In addition to numerous
global players such as Infineon Technologies, Globalfoundries, GlaxoSmithKline Biologicals, and Ardenne Anlagentechnik, a wide range of future-oriented SMEs (small and
medium-sized enterprises) are located here. The number
of employees subject to social security contributions increased by 17.3 per cent from 2004 to 2014. In addition to
the dynamic economy, Dresden is also a renowned knowledge and research location. The city’s nine universities
have around 45,000 registered students and are complemented by numerous non-university research institutions.
060
CITY PROFILE
n
DRESDEN
Dresden is the leading city in Germany when it comes to the number of births. The
capital of Saxony tops the charts among the 15 largest German cities with 117 births
per 10,000 inhabitants.
RISING POPULATION AND HOUSEHOLD NUMBERS
At the end of 2014, Dresden had 536,308 inhabitants. Projections for the period from 2012 to 2030 indicate a 1.2 per
cent rise in population, while the number of households is
expected to rise by 3 per cent. Despite the birth rate currently exceeding the death rate, the City attributes the
majority of the population growth to net migration. The
influx is almost exclusively focused in the 18 to 24 age
group. The urban population forecast predicts significant
growth in multi-person households, which usually means
families, by 2025. The number of households with three
or more people is expected to rise by 6,500 households
by 2025. This does not include the influx of asylum seekers. The growth in multi-person households is also driving
061
CITY PROFILE
n
DRESDEN
demand for family-friendly housing and building plots for
single-family homes. Of the 293,922 residential units (as
at the end of 2014) in buildings with residential accommodation, 28 per cent were built before 1918, almost 18 per
cent were built between 1919 and 1945, some 36 per cent
were built during the period from 1946 to 1990 and around
18 per cent were built after 1990. New-build following German reunification was largely subsidised by attractive tax
breaks and led to significant oversupply.
In the year 2000, approximately 60,000 residential units,
some 20 per cent of the housing stock, were vacant. During the phase of high vacancy rates, construction of single-family houses remained unchanged but construction
of apartment buildings fell sharply. The vacancy rate fell
from the end of the 1990s thanks to extensive demolition
of residential property, particularly with regard to Plattenbau (slab construction) apartment buildings. From 1992 to
2013, 11,392 residential units were demolished in Dresden.
The active market vacancy rate fell to 2.1 per cent by 2014.
Indeed, the trend has now completely reversed.
Owing to the positive demographic trends, rental apartments in particular are now becoming scarce. While building activity has increased in Dresden, this has not relieved
the strain on the rental market proportionately. A total
of 1,314 new residential units were completed in Dresden
in 2014, which was 63 per cent more (510 units) than in
the previous year. There was significant growth in newbuild apartment buildings with an increase of 328 units
to 641 new apartments compared with 2013. A regulatory
rental cap on residential rents came into effect in Dresden
in August. These have since been subject to a maximum
increase of 15 per cent (instead of 20 per cent) over three
years, up to the level of the local comparable rent.
In 2012, future construction needs in Dresden to 2025
were identified as part of the re-formulation of the land
use plan. According to forecasts, a total of 13,000 new
homes are required. Half of the projected new-build demand is for residential units in apartment buildings. The
“Wohnentwicklung in Dresden” (Residential Development in Dresden) concept, developed by the City at the
end of 2013, comprises a package of measures to enable
all relevant demand groups to gain access to Dresden’s
housing market according to their needs. When it comes
to urban development, Dresden is planning a small-scale
functional mix in city-centre developments. Besides revitalisation projects, larger amounts of residential units
will therefore mostly be built in mixed-use districts. Some
2,500 units will be developed on the former Robotron
site from 2017. There will also be cranes on the skyline
in Johannstadt North from 2017. Plans for the “generations quarter” include 200 rental apartments, 80 student
apartments and 70 business apartments. The corner plot
at Wiener Platz/Prager Straße 1 is under development
with the “Prague Carré” comprising some 240 rental
apartments, as well as retail and commercial space. A
pure residential development is in progress between Haenel-Clauß-Straße and Geisingstraße in Striesen. In the
Gartenstadt residential district, a total of 20 to 25 buildings with up to 300 apartments are scheduled for completion by the end of 2016. Furthermore, the old postal
headquarters is scheduled for conversion into the “Resi
denz am Postplatz” with 242 rental apartments by 2017.
062
CITY PROFILE
n
DRESDEN
DISTRIBUTION OF ASKING RENTS IN DRESDEN 2014 AND 2015
2014
0.4
0.6
9.3
8.2
46.2
43.1
31.3
33.9
8.6
9.6
2015
4.2
4.7
50%
40%
30%
20%
10%
0%
under €4.00
€4.00 to €5.49
€5.50 to €6.99
€7.00 to €8.49
€8.50 to €9.99
€10.00 and over
The largest segment of asking rents, some 43.1 per cent, ranged between €5.50 and
€6.99. However, 33.9 per cent ranged between €7.00 and €8.49. Overall, rents remain
at moderate levels.
MODERATE RISE IN ASKING RENTS
The median exclusive asking rent for the city as a whole increased from €6.77 in 2014 to €6.93 per square metre in
2015. In terms of rental growth since 2012, Dresden ranks
among the top quarter of all 29 major cities analysed and
is second only to Leipzig in the federal states created from
the former East Germany. The highest median asking rent
of €7.51 per square metre was reported in the exclusive
residential area of Loschwitz [06], while the lowest median
figure of €6.22 was found in Schönfeld-Weißig [10] in the
east of the city. However, it appears that the air becomes
thinner with altitude. The median asking rent in Loschwitz,
which retains its old village centre with many half-timbered
houses that are now home to numerous artists, fell for the
first time since 2012, albeit by a mere €0.11 compared with
the previous year. The Altstadt and Neustadt [01] areas
are also expensive. Landlords in these areas were asking an average of €7.20. The Altstadt on the left bank of
Dresden
Saxony
Germany
6.93
5.39
6.51
58.3
60.2
68.0
2.1
6.5
3.0
2.4
1.5
2.7
1.7
0.6
1.3
2)
063
CITY PROFILE
n
DRESDEN
Asking Rents in DRESDEN 2015
City area
Number of
rental offers
Apartment size,
average in m2
[01] Altstadt, Neustadt
2,239
58.0
7.20
[02]
Blasewitz
3,112
61.0
7.17
123
64.7
6.85
[03] Cossebaude, Mobschatz, Oberwartha, Gompitz
[04]
Cotta
2,938
55.0
6.61
[05]
Klotzsche
290
59.0
7.02
[06]
Loschwitz
1,558
63.0
7.51
[07]
Pieschen
1,564
58.5
6.64
[08]
Plauen
1,094
55.5
7.12
[09] Prohlis, Leuben
2,985
57.6
6.31
254
52.1
6.22
[10]
Schönfeld-Weißig
[11] Weixdorf, Langebrück, Schönborn
Dresden average
the Elbe, characterised by a high proportion of historically
accurate reconstructions around the Frauenkirche, comprises numerous baroque building ensembles and sights
that enhance Dresden’s charm as a cultural city. The Neustadt area is home to the government quarter, while outer
Neustadt between Königsbrücker Straße and Lutherplatz
is home to a diverse cultural scene and a plentiful restaurant and retail offering. Affordable asking rents in Dresden
are primarily found in Prohlis and Gorbitz, which comprise
large volumes of Plattenbau buildings (slab construction).
Landlords in the southeast of the city in the Plattenbau
area of Prohlis and its surrounding area [09] were quoting
less than €6.31 per square metre on new lettings. However, the extensive improvement works as part of the “Soziale Stadt” (Social City) initiative appear to be bearing
80
72.0
6.62
16,237
58.3
6.93
fruit. Since 2012, the median asking rents in the Prohlis and
Leuben areas have risen from €5.98 to €6.31 while those in
Cotta [04], including the Gorbitz area dominated by Plattenbau buildings, have increased from €5.93 to €6.61.
DRESDEN COMBINES TRADITION AND CULTURE WITH STATE-OF-THE-ART TECHNOLOGY
Dresden is not just an arts and cultural metropolis, but also a major European technology centre. In addition to the
dynamic economy, the city is also a renowned centre of knowledge and research. Owing to the positive demographic
trends, rental apartments in particular are now becoming scarce. Demand projections up to 2025 indicate a requirement of some 13,000 new residential units, half of which relates to apartments in apartment buildings. The present
availability of building land is sufficient to cover the projected demand at least in terms of quantity. However, newbuild provision must start now. The median exclusive asking rent of €6.93 per square metre reflects a relatively
moderate price level. However, rents in almost all city districts studied display a rising trend.
064
CITY PROFILE
n
DRESDEN
11
05
07
03
04
06
01
02
10
08
09
6.22 – 6.39
6.40 – 6.62
6.63 – 6.64
6.65 – 6.85
6.86 – 7.04
065
7.05 – 7.15
7.16 – 7.19
7.20 – 7.51
CITY PROFILE
n
DUISBURG
Duisburg: Modest growth but clear
north-south divide remains
Duisburg’s structural change has produced some promising growth industries. Parts of the
housing market are benefiting from their proximity to more expensive Dusseldorf as well as
beautiful green spaces. There are also signs of an upturn in the city centre.
In the former industrial stronghold and mining city of
Duisburg, more than two thirds of employees subject to
social security contributions are now working in the service industry. Coal mining ceased in 2008. The city is
benefiting from the ongoing upturn in the logistics industry, the prospering steel industry as well as science and
technology companies and particularly the university and
research institutes of the Fraunhofer-Gesellschaft. Duisburg’s inner harbour is a prominent example of structural
change, having been transformed since the 1990s from
a former industrial area to an architecturally fascinating,
mixed-use urban quarter and a highlight on the Industrial
Heritage Trail.
However, the upturn in Duisburg is not distributed evenly.
In the southern area of the city on the right bank of the
Rhine, the open spaces, living environment and infrastructure point to more favourable development than in many
other parts of Duisburg. Densely built-up and crowded
residential and industrial districts dominate the urban
landscape, particularly in the north of the city. Some areas are undergoing demolition, reducing the oversupply
in the housing market and increasing the attractiveness of
the now less densely developed areas. In terms of population, 2013 saw the first annual growth in the number of inhabitants since 1992, albeit it was a very modest increase.
However, the population declined again in 2014. Moreover,
Duisburg is expected to lose significantly more inhabitants
and households compared with Essen and Dortmund going forward. The purchasing power in the city is virtually
the lowest of all cities studied in western Germany. Only
Halle (Saale) ranks lower than Duisburg in this respect.
066
CITY PROFILE
n
DUISBURG
Duisburg’s ports are the largest inland ports in Europe. In 2014, goods handled
totalled approximately 52 million tonnes – significantly higher than in Cologne
(12 million tonnes) and Neuss-Dusseldorf (7 million tonnes).
POPULAR SOUTH, VIBRANT CENTRE
Duisburg’s most attractive residential area is located on
the right bank of the Rhine between the city centre and
the boundary with Dusseldorf. The centre, with the Altstadt and Dellviertel, and the adjacent eastern areas of
Neudorf and Duissern [01], along with the area comprising Großenbaum, Rahm, Wedau, and Bissingheim [02],
reported the highest asking rents among the nine areas of
Duisburg studied. The median asking rent in both areas
stood at €6.00 per square metre in 2015. The city centre
benefits from an excellent infrastructure. However, there
is no distinctive old town ambience. The Dellviertel enjoys
a certain bourgeois urban image by Duisburg standards.
Duissern and Neudorf are equally close to the centre and
067
CITY PROFILE
n
DUISBURG
leafy. The university is also located in Neudorf. Landlords
here are faced with urban-focused, relatively discerning
demand. The most expensive decile of apartments available showed asking rents of at least €7.60 per square metre
– more than in any other area of the city.
The area comprising Großenbaum, Rahm, Wedau and
Bissingheim has a high proportion of green spaces with
some open fields and meadows as well as forests and expanses of water. The Sechs-Seen-Platte recreation area
and the Rahmer See and Großenbaumer See lakes are also
situated here. Moreover, the area benefits from connections to Dusseldorf by S-Bahn and light rail, making it suitable as a residential area for commuters to the far more
expensive state capital. The address does, however, pose
a stumbling block for the more prestige-conscious Dusseldorf residents. Moving to Duisburg is associated with
some prejudice as it might be interpreted as a step down
the social ladder. However, upon arrival, people are often
pleasantly surprised by the beautiful living environment.
The rest of the south of Duisburg [08] is third in the city’s
rental rankings, with a median asking rent of €5.48 per
square metre on new lettings. Most of the area is relatively
close to the centre. However, there are also some green
spaces, such as Wedau Regatta Course and the Rhine
bend near Mündelheim. The area is also quite well connected to Dusseldorf. With regard to rental growth, the
area does not show any clear trend. While landlords were
asking an average of 5.4 per cent more per square metre
on new lettings in 2013 compared with 2012, the median
asking rent fell slightly by 0.4 per cent in 2014 compared
with the previous year and rose by 1.3 per cent in 2015.
MODERATE RENTS NORTH OF THE CITY CENTRE
On the one hand, the area comprising Hochfeld, Neuenkamp and Kaßlerfeld [04] borders the city centre to the
west and benefits from its infrastructure. On the other
hand, however, it is in a difficult location between the city
centre, railway lines, an industrial zone dominating the
eastern bank of the Rhine and the Ruhrort harbour that
borders the area to the north. This explains the low median
asking rent of €5.24 per square metre; the fourth lowest of
the nine city districts in Duisburg. However, the increase of
3.4 per cent in 2015 was also the highest in the city.
The second lowest rents among all city districts are
found in an extensive area to the north of the city centre comprising Meiderich, Beeck, Beeckerwerth, Ruhrort,
and Laar [06], where the median asking rent stands at
€5.10 per square metre. The area is characterised by a
densely woven mix of residential, commercial and heavy
and large-scale industry uses along with railway lines,
motorways, waste tips, landfills, and derelict sites. The
area is also home to the Duisburg North landscape park,
which was remodelled into a nationally renowned landscape architecture project as part of the International
Building Exhibition Emscher Park, and is used in a variety
of ways today. Only the employment opportunities, once
the reason many people accepted the somewhat less
attractive environment, are now scarce. Consequently,
there is an abundance of housing available. However, the
lack of economic activity and purchasing power to stimulate demand is compounded by the fact that the pre-war
and post-war housing often no longer meets contemporary requirements in terms of comfort and size. Furthermore, the contrasts of residential, commercial and transport uses in the area are all too apparent.
068
CITY PROFILE
n
DUISBURG
DISTRIBUTION OF ASKING RENTS IN DUISBURG 2014 AND 2015
2014
3.0
3.3
32.7
28.2
42.1
45.3
14.9
15.5
5.0
5.1
2015
2.4
2.6
50%
40%
30%
20%
10%
0%
under €4.00
€4.00 to €4.99
€5.00 to €5.99
€6.00 to €6.99
€7.00 to €7.99
€8.00 and over
Asking rents in Duisburg remain at a low level. More than three quarters of
residential lettings are advertised at below €6.00 per square metre and there is
essentially no high-priced segment.
These challenges are even more pronounced in the
area with the lowest median asking rent in Duisburg of
€4.88 per square metre per month. This area is situated
to the north of the afore-mentioned areas and comprises
Hamborn, Bruckhausen, Neumühl, Marxloh, and Röttgersbach [03]. In some parts, market participants and
city planners have identified demolition as the only viable
means to reduce the pressure of oversupply and unravel
the confused zoning situation. This has been implemented
in the most consistent manner in Bruckhausen, where an
entire district near Kaiser-Wilhelm-Straße is gradually disappearing and is to be replaced by a park. The “Schimanski”
movies were filmed here, since the area matched the Ruhr
area cliché extremely well at the time. In other parts of the
district, apartment buildings and public infrastructure have
been modernised with the aid of extensive subsidies.
Duisburg
Germany
5.30
6.14
6.51
64.0
69.9
68.0
5.1
3.1
3.0
1.0
2.4
2.7
0.5
1.3
1.3
2)
069
CITY PROFILE
n
DUISBURG
Asking Rents in DUISBURG 2015
City area
Number of
rental offers
Apartment size,
average in m2
1,143
62.0
6.00
359
64.0
6.00
1,399
68.0
4.88
[04] Hochfeld, Neuenkamp, Kaßlerfeld
605
60.0
5.24
[05] Homberg, Baerl
576
66.8
5.28
[01] Altstadt, Dellviertel, Neudorf, Duissern
[02] Großenbaum, Rahm, Wedau, Bissingheim
[03] Hamborn, Bruckhausen, Neumühl, Marxloh, Röttgersbach
[06] Meiderich, Beeck, Beeckerwerth, Ruhrort, Laar
[07] Rheinhausen, Bergheim, Hochemmerich, Rumeln-Kaldenhausen,
Friemersheim
1,425
62.0
5.10
1,134
64.5
5.29
[08] South (excl. Großenbaum, Rahm, Wedau)
883
60.8
5.48
[09] Walsum, Overbruch, Vierlinden, Aldenrade, Wehofen, Fahrn
572
68.6
5.23
8,096
64.0
5.30
Duisburg average
Further out, the picture is somewhat more positive. The
area far to the north on the right bank of the Rhine in
Duisburg comprises Walsum, Overbruch, Vierlinden, Aldenrade, Wehofen, and Fahrn [09]. The median asking
rent here stands at €5.23 per square metre. The area is
far removed from the city centre and is affected by the
structural crisis of the adjacent old industrial district and
the end of mining. However, the extensive Walsum Rhine
floodplain with its landscape characterised by meadows,
trees, and hedgerows is a selling point for the area.
AVERAGE LOCATIONS IN THE WEST
In Duisburg West on the left bank of the Rhine, the area
comprising Homberg and Baerl [05] shows the highest
median asking rent in the north of Duisburg of €5.28 per
square metre. Alt-Homberg has the image of a small
Lower Rhine town (albeit without the historical character)
but is suffering from the decline of local industries. Baerl
is primarily dominated by single-family houses and has a
correspondingly small rental market.
The median asking rent is almost identical in the area
south of here, comprising the districts of Rheinhausen,
Bergheim, Hochemmerich, Rumeln-Kaldenhausen and
Friemersheim [07]. This spacious and highly heterogeneous area extends over the entire south west of Duisburg.
The area includes a logistics cluster on the former site of
the Rheinhausen Krupp steel plant and a range of suburban housing estates of varying quality. The environmental
impact from transport and industry is somewhat compensated by attractive scenic destinations such as the Toeppersee lake.
RISING OPTIMISM TOWARDS DUSSELDORF
The situation on the Duisburg residential market situation is often cause for concern for landlords but it is not
completely without hope. There are secluded residential areas with good transport links – not only with Duisburg city centre, but also with Dusseldorf and its much hotter housing market. The situation in the districts to
the west of the Rhine, where industry is in decline, is mixed. The lowest rents are found in the areas to the north
of the centre. Demolitions to rebalance the market are probably inevitable here. This will also reduce development density as well as creating potential for green spaces, infrastructure, and forward-looking industries.
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DUISBURG
09
05
03
06
04
01
07
08
02
4.88 – 5.10
5.11 – 5.23
5.24 – 5.24
5.25 – 5.28
5.29 – 5.29
071
5.30 – 5.48
5.49 – 6.00
6.01 – 6.02
CITY PROFILE
n
DUSSELDORF
Dusseldorf: Rental growth has almost halted
The state capital of North Rhine-Westphalia is expected to continue its positive growth over the
coming years. Dusseldorf is almost exemplary of how residential markets can function. Demand has
risen over a sustained period, rents have grown and a development boom has followed.
Dusseldorf continues to enjoy dynamic economic growth.
The city is home to major companies and is a national hub
for sectors such as mobile communications, advertising,
and fashion. It is also a key location for foreign trade and
trade fairs in addition to being a transport hub, a state
capital and a service centre in the Rhine-Ruhr area. The
number of employees subject to statutory social security
contributions has risen by 15.5 per cent within 10 years.
Meanwhile, the population has grown by an impressive
2.5 per cent from the end of 2011 to the end of 2014 alone.
In keeping with the other top seven cities, Dusseldorf has
an above-average proportion of 30 to 44 year-olds and
single-person households. Between 2012 and 2030, the
population is projected to grow by 3.4 per cent while the
number of households is expected to rise by as much as
6.9 per cent. At the recent rate of growth, these predictions could be reached much sooner. All of this has resulted in sharp rises in asking rents in the city in recent
years and, consequently, a development boom.
ONLY A MODEST RISE
However, rents are only moving in one direction. This is
the current experience of many providers, who have bet
on a sustained continuation of the strong growth of recent years and invested in new developments – particularly in the high-end segment and in sought-after districts,
though not always in the best micro-locations. Indeed,
only around one fifth of new apartments are built for letting. However, every condominium also frequently influences and lightens the market – often because either an
owner-occupier is a potential tenant lost or because an
investor lets the apartment.
Across the city as a whole, the median asking rent rose
by just 0.3 per cent to €9.23 per square metre in 2015.
The absolute value is still second only to Cologne (€9.86)
among the major cities in North Rhine-Westphalia. However, in view of the economic and population growth, the
increase is not so impressive. Some landlords reduced
their asking rents compared with the previous year. This
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DUSSELDORF
Dusseldorf has the highest commuter balance of all cities in North Rhine-Westphalia. The ratio of incoming commuters to outgoing commuters in Dusseldorf
is around 3.1 to one.
is particularly true in Oberkassel [14] on the left bank of
the Rhine facing the Altstadt (Old Town); traditionally the
area with the highest rents. The median figure here remains a substantial €11.93 per square metre, although this
is 1.0 per cent lower than in the previous year. The median
asking rent also fell in the two previous years compared
with a year earlier. This is attributable to local new-build
projects in neighbouring Heerdt as well as competition
from other districts. However, the luxury segment remains strong. The most expensive decile of apartments is
marketed for at least €16.38 per square metre.
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DUSSELDORF
TOP LOCATIONS ON BOTH BANKS OF THE RHINE
In second place, with a median asking rent of €10.99 per
square metre, is the city centre with the Altstadt, the baroque Carlstadt and the area around the Königsallee [15].
This area benefits from its spacious location in the city
but not always from the micro-location or building quality. Many buildings date back to the post-war era and are
impaired by traffic or the bustle of the Altstadt district. At
the upper end of the market, however, asking rents in the
most expensive decile start at €15.76. Such rents can be
demanded on the banks of the Rhine, around the small
parks in the area and in buildings of luxurious fit-out, for
example.
In third place with a median asking rent of €10.33 is the
second area of Dusseldorf on the left bank of the Rhine,
adjacent to Oberkassel, which comprises the districts of
Lörick, Niederkassel, and Heerdt [11]. While Niederkassel
and Lörick have long been regarded as good leafy neighbourhoods, Heerdt is only now enjoying an upturn. There
are a number of major new developments, such as the
Heinrich-Heine-Gärten and Rheinkilometer 740, and the
market is less characterised by areas of traffic and industrial pollution than previously.
FIVE AREAS WITH RENTS OF EXACTLY €10.00
There are five areas in the city with a median asking rent
of exactly €10.00 per square metre. To the south of the
centre is Unterbilk [16], a mixed-use area including the
state parliament and ministries along with numerous
other office and apartment buildings from the 1950s and
1960s as well as 1990 onwards. The densely populated
district adjacent to Medienhafen is more a residential
area for singles and couples than for families. Hamm and
Volmerswerth [07] are relatively close to the city centre
and are separated from Unterbilk and Medienhafen by
the S-Bahn line. Development in the area is of a low density and, in places, even has a rural character. The median
asking rent rose by 1.7 per cent in 2015, which is slightly
above average.
The median asking rent is also exactly €10.00 per square
metre in three areas to the north of Dusseldorf city centre. One of these areas comprises Wehrhahn and Pempelfort (South) [18] and is situated directly north of the city
centre. The area benefits from its central location, good
infrastructure and the greenery of the Hofgarten public
park. Negatives include the high proportion of relatively
basic post-war structures with somewhat cramped layouts and the very high development density. Around five
kilometres north of the city centre are Golzheim, Stockum,
and Lohausen [10]. Development here is predominantly
of a low density and often characterised by single-family
houses. The final area with a median asking rent of precisely €10.00 comprises Wittlaer, Angermund, Kaisers
werth, and Kalkum [20]. The once rural or provincial
character is still evident in many places. The environment
is characterised by green spaces and the banks of the
Rhine but also by busy roads and railway lines as well as
the airport.
Next in the rankings and far more central is the area
comprising Derendorf and Pempelfort (North) [01]
around two kilometres north of the city centre. The former Derendorf rail freight depot is now the site of the
overall largest residential development project in the city,
Le Quartier Central. With a median asking rent of €9.65,
next in the rankings is another suburban area comprising
Hubbelrath and Ludenberg [09], which is situated in the
foothills of the Bergisches Land region and includes hillside and woodland areas. The area is neither close to the
city nor well connected to the city centre.
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DUSSELDORF
DISTRIBUTION OF ASKING RENTS IN Dusseldorf 2014 AND 2015
2014
1.8
2.1
20.1
17.8
41.1
42.8
23.3
24.6
8.3
8.5
2015
5.3
4.2
50%
40%
30%
20%
10%
0%
under €6.00
€6.00 to €7.99
€8.00 to €9.99
€10.00 to €11.99
€12.00 to €13.99
€14.00 and over
Asking rents in Dusseldorf remain high. More than a third of apartments are
marketed for €10.00 per square metre or more. However, the proportion of prime
rents of €12.00 and above declined slightly compared with the previous year.
PERIPHERAL AREAS AT THE TAIL END
The next area in the rankings comprising Flingern North,
Grafenberg and Düsseltal [03] has a median asking rent of
€9.53 per square metre and is situated to the northeast of
the city centre. Towards the city centre, these are characterised by areas of dense multi-storey development while
the outer areas have large amounts of green space. This
is followed by Bilk and Flehe [02] to the south of the city
centre as well as the southern city centre including Frie-
drichstadt. While the latter is a very central area, it is particularly affected by heavy road traffic and is densely developed, with the majority of housing dating back to the
post-war era and no longer meeting current occupier requirements.
In all other areas, the median asking rent is more or less
significantly below the figure for the city as a whole. This is
true of Oberbilk and Flingern South [13] – densely developed areas to the east of the city centre with an intimate
Dusseldorf
Germany
9.23
6.14
6.51
70.0
69.9
68.0
1.6
3.1
3.0
3.7
2.4
2.7
3.3
1.3
1.3
2)
075
CITY PROFILE
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DUSSELDORF
Asking Rents in Dusseldorf 2015
City area
Number of
rental offers
Apartment size,
average in m2
1,092
67.0
9.71
752
65.0
9.37
1,173
78.0
9.53
[04] Friedrichstadt, City Centre (South)
970
66.0
9.29
[05] Garath, Hellerhof
251
70.0
7.71
[06] Gerresheim, Vennhausen, Unterbach
677
72.0
8.64
[07] Hamm, Volmerswerth
233
72.0
10.00
[08] Himmelgeist, Itter, Holthausen, Reisholz, Hassels
551
61.7
8.49
[09] Hubbelrath, Ludenberg
324
81.0
9.65
[10] Lohausen, Stockum, Golzheim
283
90.0
10.00
10.33
[01] Derendorf, Pempelfort (North)
[02] Flehe, Bilk
[03] Flingern North, Grafenberg, Düsseltal
[11] Lörick, Niederkassel, Heerdt
643
77.7
1,123
68.1
8.68
[13] Oberbilk, Flingern South
895
58.0
8.53
[14]
Oberkassel
434
95.0
11.93
[15] City Centre (Königsallee), Carlstadt
231
80.0
10.99
[16]
Unterbilk
259
63.0
10.00
[17] Urdenbach, Benrath
405
65.0
9.05
[18] Wehrhahn, Pempelfort (South)
791
73.0
10.00
[19] Wersten, Eller, Lierenfeld
825
63.9
8.33
381
90.0
10.00
12,293
70.0
9.23
[12] Mörsenbroich, Rath, Lichtenbroich, Unterrath
[20] Wittlaer, Angermund, Kaiserswerth, Kalkum
Dusseldorf average
mix of residential and commercial uses. The same figures
are also registered in areas on the periphery to the north,
(i.e. Rath), to the south, (i.e. Benrath), and to the east, (i.e.
Gerresheim). By far the lowest asking rents are found in
the far south of Dusseldorf in Garath and Hellerhof [05],
which is dominated by a satellite town from around 1970.
The median rent per square metre here stands at just
€7.71 but posted a significant rise of 2.8 per cent in 2015.
CURRENT BLIP BUT GOOD LONG-TERM OUTLOOK
Dusseldorf is a federal state capital, part of the Rhine-Ruhr metropolitan region and remains the second-most
expensive major city in North Rhine-Westphalia. However, rental growth is currently showing signs of easing,
with some figures even decreasing year on year. Nevertheless, with the city’s economy and population expected
to maintain their growth for the foreseeable future, the medium and long-term outlook for providers is good.
However, the current trends demonstrate that, even during booms, not every apartment can be marketed at any
price. Going forward, landlords must approach the market sensibly and take account of the different occupier
requirements in terms of price and quality.
076
CITY PROFILE
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DUSSELDORF
20
10
12
09
01
11
18
14
03
15
16
07
04
13
06
02
19
08
17
05
7.71 – 8.51
8.52 – 8.67
8.68 – 9.30
9.31 – 9.59
9.60 – 9.96
077
9.97 – 10.00
10.01 – 10.21
10.22 – 11.93
CITY PROFILE
n
E R F U RT
Erfurt: A city of diversity
Erfurt is the state capital and thus the political, economic and cultural centre of the Free State of
Thuringia. Net migration and a trend towards re-urbanisation are resulting in shortages of city centre
housing, while rising rents are triggering increasing construction.
The impressive ensemble of the cathedral and St Severi
church is a landmark of the city and witness to the stability and serenity of Erfurt in the face of changing political
systems, social trends, and economic challenges. Erfurt is
a city of bridges. A total of 216 span its rivers and roads,
the most famous being the Krämerbrücke. The bridge was
built of stone in 1325 and is the only bridge completely
covered in housing north of the Alps. The city is also
building bridges between its diverse architectural styles,
which reflect its eventful history. The medieval, almost
three square kilometre old town centre of Erfurt is one of
the best preserved in Germany, and is an impressive example of a cohesive urban area. The old town is flanked
by a belt of Wilhelminian period districts, encompassing
the formerly bourgeois Löbervorstadt and Brühlervorstadt
areas, as well as the workers’ districts of Krämpfervorstadt and Johannesvorstadt. Social housing estates from
the 1920s and 1930s and post-war housing estates, as
well as large housing estates reflecting the industrial design of the communist era, are supplemented by villagelike settlements with single-family houses.
KNOWLEDGE AND RESEARCH
The University and Technical University of Erfurt, jointly
the “University of Applied Sciences”, contribute more than
10,000 students to a pool of highly-skilled professionals.
The state-owned research facility CiS Institute for Micro
Sensors and Photovoltaics combines micro-systems technology research with the fields of sensors, photovoltaics,
optics and nanotechnology, supporting small and medium-sized companies along the entire innovation chain
as a service centre for research and development. In 2017,
the city celebrated one of its most famous sons, Martin
Luther, by marking 500 years since the Reformation. Luther was a student at the university in Erfurt from 1501 to
1505. The spirit of research is also embodied in council
078
CITY PROFILE
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E R F U RT
The Krämerbrücke bridge, which extends over a tributary of the Gera river, is
the longest completely developed and inhabited bridge in Europe. The bridge has
a total length of 120 metres and is developed with 32 houses.
leader Christian Reichart, who founded commercial horticulture in the 18th century by way of introducing scientific
seed breeding and cultivation methods, earning the city
the reputation of “German city of flowers”. Today, Erfurt
is tapping into this tradition under the motto “GartenKulturStadt” (Garden City of Culture) and will host the German National Garden Festival in 2021.
A GROWING ECONOMY
Erfurt is closely connected to the economic centres of
Germany and Europe by way of excellent road, rail and
air transport links. This is set to improve further with the
completion of the new ICE terminal. In addition to its balanced mix of engineering, construction, and building materials industries, horticulture, the trades, and a versatile
079
CITY PROFILE
n
E R F U RT
service sector, Erfurt is also a centre for microelectronics,
micro-systems technology, and solar technology. Around
80 per cent of all chip card bodies in German mobile
phones are manufactured in Erfurt. As the administrative,
commercial and service hub for the Free State of Thuringia,
the federal state and municipal authorities are among the
largest employers in the city, followed by Stadtwerke Erfurt Gruppe and the Helios hospital. The media and logistics sectors are also represented in the city.
CONTINUED POPULATION GROWTH
From 1994 to 2002, Erfurt lost 6.3 per cent of its inhabitants due to the exodus to the west and the subsequent
effects of suburbanisation. Since then, the population
of Erfurt has consistently increased, with the exception
of 2006. From 2011 to 2014 alone, the population rose
by 2.1 per cent, reaching a total of 206,219. Against this
background, it is questionable whether the projected decrease of 7.0 per cent in population and 4.4 per cent in
households for the period from 2012 to 2030 will actually
materialise. Erfurt’s household structure is mainly characterised by one and two-person households (almost 78 per
cent). The age groups are fairly evenly distributed. At 31
per cent, the proportion of people under the age of 30 is
almost matched by the 28 per cent of people aged 60 or
older. This is in line with average figures for Germany. According to the census, the housing stock in Erfurt comprised 28,045 buildings with 108,257 residential units, of
which 55,650 were in apartment buildings excluding Plattenbau buildings (slab constructions). There were also a
further 33,800 residential units in Plattenbau buildings.
Single and two-family houses make up more than 62 per
cent of the building stock in Erfurt. However, only around
a quarter of the population lives in such housing. Construction activity decreased significantly after the turn of
the millennium, falling from 1,635 apartments in residential buildings in 2000 to 342 homes in 2014. The active
market vacancy rate in apartment buildings now stands at
2.6 per cent (2014), which is below the Thuringian average of 5.2 per cent.
Erfurt is aiming to reduce CO2 emissions in the city by
80 per cent by 2050. A cornerstone of this concept is
the 10-hectare “Klimagerechte Pilotsiedlung Marienhöhe”
(Marienhöhe climate-friendly pilot area) with decentralised energy generation, solar thermal energy and passive house standards. The expansion of the main railway
station into an ICE hub is a catalyst for the new 30-hectare “ICE-City” urban quarter, scheduled for completion
by 2017. New, larger residential areas are also planned
over the coming years in the Johannesvorstadt district
between Eislebener Straße and Kirchgasse, on the brownfield sites between Krämpfervorstadt and the railway line
to Nordhausen and in Erfurt-Gispersleben, in the area between Ulan-Bator-Straße and Zittauer Straße.
080
CITY PROFILE
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E R F U RT
DISTRIBUTION OF ASKING RENTS IN ERFURT 2014 AND 2015
2014
6.0
5.3
22.3
22.9
37.1
32.6
20.5
23.4
8.2
9.8
2015
6.0
6.0
40%
30%
20%
10%
0%
under €5.00
€5.00 to €5.99
€6.00 to €6.99
€7.00 to €7.99
€8.00 to €8.99
€9.00 and over
The majority of exclusive asking rents in Erfurt range between €5.00 and €7.99 per
square metre. However, the proportion of residential listings from €8.00 has been
rising appreciably for a number of years.
RENTS ARE ON THE INCREASE
The median exclusive asking rent in Erfurt rose from
€6.30 per square metre in 2012 to €6.60 in 2015. The
most expensive decile of residential lettings advertised started at €8.50. The highest median asking rent
of €7.50 was found in the area comprising Hochheim,
Bischleben, Schmira, and Möbisburg [03] in the southwestern outskirts with their rural charm, as well as in
Löbervorstadt [06], the greenest district in Erfurt. The
lower Dichterviertel and Musikerviertel areas offer lovers
of Wilhelminian era architecture an abundance of choice
between villas and apartment buildings with spacious
green courtyards. The most affordable asking rent of
€5.47 per square metre was quoted in the area comprising Sulzer Siedlung, Roter Berg, Gispersleben, Moskauer
Platz, and Hohenwinden [11]. Residential development
in this area comprises a varied mix, ranging from singlefamily houses to Plattenbau buildings. From the mid-
Erfurt
Thuringia
Germany
6.60
5.38
6.51
61.2
62.0
68.0
2.6
5.2
3.0
1.7
1.4
2.7
0.9
0.5
1.3
2)
081
CITY PROFILE
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E R F U RT
Asking Rents in ERFURT 2015
City area
Number of
rental offers
Apartment size,
average in m2
[01]
Altstadt
597
70.0
7.47
[02] Berliner Platz, Andreasvorstadt
443
57.0
6.65
7.50
[03] Hochheim, Bischleben, Schmira, Möbisburg
88
81.5
[04] Ilversgehofen, Johannesplatz
507
58.0
6.51
[05] Johannesvorstadt, Krämpfervorstadt, Hohenwinden
437
61.5
6.84
[06]
Löbervorstadt
303
72.0
7.50
[07] Melchendorf, Egstedt, Waltersleben
259
66.7
5.50
[08] Rhoda, Niedernissa, Herrenberg, Dittelstedt
283
60.8
6.00
[09] Periphery North/East
55
57.0
6.40
[10] Periphery West
225
60.0
6.77
[11] Sulzer Siedlung, Roter Berg, Gispersleben, Moskauer Platz,
Hohenwinden
334
60.0
5.47
3,531
61.2
6.60
Erfurt average
1990s, many residents moved from the large northern
housing estates in the districts of Berliner Platz, Rieth,
Moskauer Platz, and Roter Berg to the city centre or fulfilled their dream of owning a home in the country. Various urban planning measures have since contributed to a
significant increase in the attractiveness of the area. New
green spaces were built on vacated land and playgrounds
installed in the courtyards. The upgraded housing estates
now provide good access to public transport, short travel
times to care centres, as well as a wide range of wheelchair accessible and barrier-free homes, which is increasingly attracting people back to the north of the city. Rental
ranges in Erfurt are interesting owing to their marked vari-
ation. Asking rents on 80 per cent of housing in the Altstadt area [01] ranged from €6.00 to €9.08 per square
metre. This reflects the transformation of recent years,
which brought new-build to the Altstadt and the restoration and redevelopment of many buildings at considerable
expense. Exclusive housing was created in the renovated
Chrestensenhof and the Schottenhöfen, which is often let
to tenants. In six out of 11 areas in Erfurt, the asking rent
increased by more than 2 per cent year on year in 2015,
while rents in four areas remained quite stable. The highest rental increase of 5.6 per cent was found in the urban
area comprising Johannesvorstadt, Krämpfervorstadt, and
Hohenwinden [05].
ERFURT is adept at creatively COMBINing transformation and identity
Erfurt, the capital of Thuringia, is the administrative, commercial and service centre of the Free State. The economy consists of a balanced mix of the engineering, construction, and building materials sectors as well as horticulture, the trades, and a versatile service industry. Furthermore, Erfurt is also a centre for microelectronics,
micro-systems technology, and solar technology. The city’s university and technical university contribute to an
extensive pool of well-trained professionals. Erfurt has a wide range of different architectural styles and living
qualities. The influx of residents and low construction activity in recent years has resulted in a supply shortage,
particularly in the lower and average-priced segments, driving up rents.
082
CITY PROFILE
n
E R F U RT
11
10
04
02
09
05
01
06
03
08
07
5.47 – 5.63
5.64 – 6.20
6.21 – 6.48
6.49 – 6.65
6.66 – 6.79
083
6.80 – 7.16
7.17 – 7.49
7.50 – 7.50
CITY PROFILE
n
ESSEN
Essen: Quiet market with a continuing
north-south divide
South of the city centre, with its office high-rise skyline, are attractive residential areas set among
beautiful landscapes. North of the centre, however, many areas show clear traces of the industrial
past. This creates a generally stable yet clearly divided market.
On the one hand, Essen is home to major companies and
represents a central service hub in the Ruhr area. Five of
the 50 largest companies in terms of turnover in Germany
have their headquarters in the city. The largest companies in Essen include RWE, ThyssenKrupp, Aldi Nord and
HOCHTIEF. On the other hand, Essen continues to suffer
from the decline of the coal and steel industries. The unemployment rate of 12.4 per cent in 2014 is the third highest of the 29 cities covered in this report. The growth in
employees subject to social security contributions from
2004 to 2014 was below the average for Germany. Conversely, the population growth of 1.4 per cent from the
end of 2011 to the end of 2014 was above the national av-
erage (1.1 per cent). Even the city administration does not
officially attribute the population growth in recent years
to economic growth, but rather to the eastward expansion
of the EU, the crisis in southern Europe and the influx of
asylum seekers. The projected population decline of 5 per
cent by 2030 places Essen between the Ruhr area cities
of Dortmund (-3.1 per cent) and Duisburg (-7.6 per cent).
084
CITY PROFILE
n
ESSEN
Essen is a city of revenue giants. Five of the 50 largest companies in Germany
in terms of turnover have their headquarters here. Only the significantly larger
cities of Munich and Hamburg can match this figure.
GOOD LOCATIONS CLOSE TO THE RUHR
Essen’s residential market is far less active than most
other cities of a similar size. The median asking rent of
exactly €6.00 per square metre per month in 2015 ranks
23rd out of the 29 cities in this report – a position shared
with Dortmund – and represents an increase of just
0.3 per cent on the previous year.
Traditionally, the residential market in the city has shown
a north-south divide, which is also evident in the current asking figures. The highest median asking rent in
2015 of €7.86 per square metre per month was recorded
in the scenic area to the south west on both sides of the
Ruhr, which includes Werden, Kettwig, Bredeney, Schuir,
Fischlaken, Heidhausen, Margarethenhöhe, and Haar-
085
CITY PROFILE
n
ESSEN
zopf [09]. This area includes some small suburban centres surrounded by large numbers of single-family houses.
The best locations are found on the slopes directly above
the Ruhr; a fact not only appreciated by the Krupp family with their stately home “Villa Hügel”. The top end of
the residential market is also significantly pronounced in
the southwest of Essen. Apartments in the most expensive decile on the market have asking rents of €10.00 per
square metre or greater. In the south, the recent increase
in asking rents of 2.5 per cent appears unspectacular at
first glance but is actually significantly above the average
for the whole of Essen.
CENTRE IS LESS EXPENSIVE THAN THE SOUTH
The next most expensive parts of the city are also situated
in the south of Essen – also set among attractive landscapes but not all in quite such prestigious areas. The median asking rent in Rüttenscheid, Bergerhausen, Rellinghausen, and Stadtwald [05] is €7.41 per square metre per
month. However, the increase in asking rents of 1.6 per
cent in 2015 was somewhat lower than in the top locations. Significantly lower asking rents are found in those
areas in the far southeast of the city, which are close to
the Ruhr yet quite remote from the city and only moderately connected to the city centre. The area including
Heisingen, Byfang, Kupferdreh, Überruhr, and Burgalten-
dorf [04] shows a median asking rent of just €6.83 per
square metre. This represents an increase of 1.2 per cent
in 2015, which was moderately above average. In the previous year, the median asking rent stagnated with an increase of just 0.1 per cent.
Rental values in the centre of Essen are significantly below those in the south, yet still above the median figure
for the city. In the city centre, Ostviertel, Südviertel, Südostviertel, and Westviertel areas as well as Huttrop [06],
the median asking rent is €6.31 per square metre per
month. Despite the optimal transport links and infrastructure, this area cannot compete with the green and wellkept south of the city. The price growth in the city centre
was also modest at 1.4 per cent. This trend towards urbanisation is being moderated by high traffic congestion,
some narrow and unattractive post-war architecture as
well as wasteland and old industrial ruins, which can even
be found on the doorstep of Essen’s city centre.
RENTS FALL TOWARDS THE RIVER EMSCHER
All remaining areas are situated in the north and east
of Essen, where median asking rents per square metre are below the levels for the city as a whole. At €5.96,
the rental level in Altendorf, Frohnhausen, and Holsterhausen [01] to the west of the city centre is still relatively
high for these areas and also represented the strongest increase in the city of 2.6 per cent. The new ThyssenKrupp
headquarters, which has been under development in
phases since 2010 and will employ around 2,000 people,
may have invigorated the rental market here, albeit only
moderately. Discerning corporate employees often seek
higher quality apartments than the surrounding market
can offer. Apartments on the market in this area measure
an average of 60 square metre; smaller than in all other
areas of the city with the exception of the city centre.
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CITY PROFILE
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ESSEN
DISTRIBUTION OF ASKING RENTS IN ESSEN 2014 AND 2015
2014
0.7
1.1
29.6
26.9
46.6
46.9
15.9
17.1
5.2
5.6
2015
2.0
2.3
50%
40%
30%
20%
10%
0%
under €4.00
€4.00 to €5.49
€5.50 to €6.99
€7.00 to €8.49
€8.50 to €9.99
€10.00 and over
Essen remains inexpensive. Almost half of all residential listings in 2015 ranged
between €5.50 and €6.99 per square metre while more than a quarter were lower
than €5.50 per square metre.
Median asking rents on the northwestern periphery in
Borbeck, Frintrop, Gerschede, Schönebeck, Bochold, and
Dellwig [03] average €5.89. These districts form part of
the Emscher zone, which is strongly characterised by the
former and remaining industry as well as by east-west
transport routes, such as the A 42 (Emscher expressway).
The area includes some densely developed districts, some
smaller settlements and some clearly identifiable suburban centres, particularly in Borbeck. However, the 2.2 per
cent increase in the median asking rent per square metre
in 2015 was above the citywide average.
MODEST RENTS AT THE WORLD HERITAGE SITE
The area including the districts of Stoppenberg, Nord
viertel, Katernberg and Schonnebeck [08] extends to the
north and northeast of the city centre to the periphery towards Gelsenkirchen. The median asking rent in this area
stood at €5.70 per square metre per month in 2015. The
Essen
Germany
6.00
6.14
6.51
64.0
69.9
68.0
3.4
3.1
3.0
1.3
2.4
2.7
0.7
1.3
1.3
2)
087
CITY PROFILE
n
ESSEN
Asking Rents in ESSEN 2015
City area
Number of
rental offers
Apartment size,
average in m2
1,945
60.0
5.96
715
61.0
5.55
1,576
63.1
5.89
[04] Heisingen, Byfang, Kupferdreh, Überruhr, Burgaltendorf
653
72.0
6.83
[05] Rüttenscheid, Bergerhausen, Rellinghausen, Stadtwald
880
66.0
7.41
[06] Stadtkern, Ost-, Süd-, Südost- and Westviertel, Huttrop
1,002
60.0
6.31
[07] Steele, Kray, Horst, Leithe, Freisenbruch, Frillendorf
1,456
67.7
5.51
[08] Stoppenberg, Nordviertel, Katernberg, Schonnebeck
1,268
61.0
5.70
929
77.4
7.86
10,424
64.0
6.00
[01] Altendorf, Frohnhausen, Holsterhausen
[02] Altenessen, Karnap, Vogelheim
[03] Borbeck, Frintrop, Gerschede, Schönebeck, Bochold, Dellwig
[09] Werden, Kettwig, Bredeney, Schuir, Fischlaken, Heidhausen,
Margarethenhöhe, Haarzopf
Essen average
area is home to the University of Duisburg-Essen and the
Zollverein coal mine; a UNESCO World Heritage Site. The
area of northern Essen to the west also shows a median
asking rent of €5.70. Altenessen, Karnap, and Vogelheim [02] comprise a partly ragged settlement structure
with residential areas surrounded by commercial property,
tips and remaining greenery and that partly lie north of
the Emscher expressway. The reason for creating many of
these settlements, namely the proximity to the mines, has
long since disappeared. A small ray of hope may be that
median rents in the area rose by 1.5 per cent from 2014 to
2015. However, at €5.55 per square metre, landlords continue to demand modest rents in the area.
At the bottom of the rental rankings are the eastern districts of Steele, Kray, Horst, Leithe, Freisenbruch, and
Frillendorf [07]. These are districts of varying quality, partly
bisected by the Ruhr expressway and the main railway
line and mixed with commercial property and small green
spaces. Median asking rents here are a moderate €5.51 per
square metre. The area includes a large number of post-war
structures, often of a modest standard. The least expensive decile of apartments has a maximum asking rent of
€4.49 per square metre, the lowest figure in Essen.
STABILITY IN THE SOUTH, UNCERTAINTY IN THE OLD INDUSTRIAL DISTRICTS
From an economic perspective, the weaknesses of the old industries have just as much impact as the strengths
of the new service and knowledge sectors. This contradiction is also reflected in the residential market. There
is a significant divide between the southern city districts and the traditional workers’ areas in the north. Yet,
throughout the city, there are no major swings in the residential markets, but a slight to moderate rise in asking rents almost without exception. Investments are significantly more expensive in the south of Essen than in
the northern districts, where there are still many remnants of the old industries. However, the jobs once offered
there are no longer available.
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CITY PROFILE
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ESSEN
02
03
08
06
01
07
05
04
09
5.51 – 5.55
5.56 – 5.70
5.71 – 5.89
5.90 – 5.96
5.97 – 6.31
089
6.32 – 6.83
6.84 – 7.41
7.42 – 7.86
CITY PROFILE
n
F R A N K F U RT A M M A I N
Frankfurt am Main: Global city on the move
Frankfurt’s high desirability ensures constant population growth and excess demand for the
provision of housing. To create new living space, the City is making use of subsidy programmes,
the Residential Building Land Development Programme, densification and changes of use.
From a hub of European trade routes since the Middle
Ages, Frankfurt has developed into a major European financial and commercial centre. In addition to the European Central Bank, the European Banking Authority also
has its headquarters here. Frankfurt’s exhibition centre
is one of the largest trade fair venues in the world while
Frankfurt Airport connects the city with 300 destinations
in 110 countries. Frankfurt is the core city of the RhineMain region and home to some 5.5 million people as well
as 365,000 companies, which generate an annual gross
domestic product of €200 billion. The population in Frankfurt stood at 717,624 inhabitants at the end of 2014, representing an increase of 6.1 per cent compared with the
end of 2011 and the second-highest population growth of
all 29 cities analysed, behind Leipzig. With 300,000 commuters a day, the Main metropolis is regarded as a transit
city par excellence. This global city is home to people from
180 nations. Around one in four residents does not hold a
German passport. Only around half of Frankfurt’s residents
live in the city for longer than 15 years. The rental apartment market therefore accounts for the majority of housing, less than 20 per cent of which is owner occupied. The
numerous international schools and research institutes as
well as the universities, theatres, museums, the River Main
and many green spaces make the city an attractive place
to live. The purchasing power in the city is correspondingly high. With an average of €25,168 per capita, Frankfurt
ranks third in this respect behind Munich and Dusseldorf.
However, Frankfurt’s projected growth in the number of
households of 3.4 per cent by 2030 significantly lags that
of the other top seven cities, whose growth projections
range from 5.4 to 8.2 per cent.
090
CITY PROFILE
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Frankfurt has an extremely high employment density. The number of employees
per 1,000 inhabitants is almost 950. Approximate comparable figures include 850 for
Dusseldorf, 730 for Munich, 670 for Hamburg and 520 for Germany as a whole.
HIGH SURPLUS DEMAND DESPITE INCREASING
BUILDING ACTIVITY
Building activity in Frankfurt has increased significantly in
recent years. In 2014, almost 3,600 new homes were completed (in residential and non-residential buildings including residential homes). The vast majority of these residential units were in apartment buildings. This completion
volume represents a strong rise of 28 per cent compared
with the previous year. The construction volume relative to
the population size in Frankfurt is also high compared with
the largest German cities. Nevertheless, supply is not sufficient to satisfy the strong demand. The residential supply
rate, which indicates the ratio of residential units to households, was at 93.7 per cent at the end of 2013. There is a
091
CITY PROFILE
n
particular supply shortage in the low-priced housing segment and the particularly popular districts, such as Westend, Sachsenhausen, and Bornheim.
DISTRICTS ARE CHANGING THEIR IMAGE
MULTI-CHANNEL HOUSING PROCUREMENT
The shortage of housing in Frankfurt cannot be resolved via
densification, development of gaps between buildings, and
the conversion of commercial space alone. Consequently,
the City has further extended its residential development
land programme from 2011, designating further potential space for around 6,000 residential units; it has already
started 15 development plans. Accordingly, the programme
provides for a potential total of 30,270 residential units.
The city is pursuing a second channel via the subsidisation
of housing construction, acquiring occupancy rights and
implementing subsidy programmes for new construction.
The “Mittelstandsprogramm” subsidy programme for the
construction of rental apartments for the middle-income
target group falls within this category, along with specific
subsidy programmes for student housing and living space
suitable for senior citizens. As instruments against “luxury
renovations” and gentrification, the city uses conservation and environmental protection statutes and is working towards a 30 per cent social housing quota for larger
construction projects within the context of planning law.
While the Mietpreisbremse (capping of rents on re-letting)
planned by the state of Hesse regards Frankfurt as a city
with a “strained residential market”, this does not apply to
the four districts of Berkersheim, Eckenheim, Harheim, and
Unterliederbach.
Many large-scale projects will change the Frankfurt cityscape over the coming years. With the restructuring of
the area around the cathedral and city hall, the historical centre will rise again with a new identity, and the
residential use that was lost during the Second World
War will be restored. Ostend, an industrial and workingclass district, will be realigned as a modern, trendy district alongside the construction of the European Central
Bank. Within eyeshot, a mixed-use district with around
1,000 apartments will be created in Sachsenhausen with
the conversion of the former Henninger brewery site. The
area around the railway station, which was stigmatised
for a long time due to its red light district, is a prime example of how a well thought-out subsidy programme can
contribute to the enhancement of a district. This is apparent from the significant population growth and rising
number of apartments. Large residential districts are also
planned for the Siemens site south of Rödelheimer Landstraße and on the former Goethe University site in the
form of the new “Kultur-Campus” urban quarter. One example of the successful revitalisation of an infrastructural
wasteland is the Europaviertel district, where a number of
urban quarters with different characters are being developed through to 2025. In the direct vicinity, conversion
and revitalisation will give the former working-class Gallus district 1,500 new apartments and 600 student apartments. The constant influx of new inhabitants is also currently resulting in a renaissance of vertical development
in Frankfurt and a change of image for high-rise blocks.
These are now being developed in prime city locations
with resource-efficient designs by renowned architects
and with numerous additional benefits.
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CITY PROFILE
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DISTRIBUTION OF ASKING RENTS IN FRANKFURT 2014 AND 2015
2014
4.9
4.4
17.8
16.7
28.5
28.1
24.5
25.1
13.6
15.7
2015
10.7
9.9
40%
30%
20%
10%
0%
under €8.00
€8.00 to €9.99
€10.00 to €11.99
€12.00 to €13.99
€14.00 to €15.99
€16.00 and over
Some 53.2 per cent of asking rents in Frankfurt lie between €10.00 and €13.99 per
square metre. However, the city also has a high proportion (around 25 per cent) of
high-priced rents from €14.00 upwards.
RISING RENTS AND PRICES
Rents continue to rise in Frankfurt. The citywide average
rose from €11.89 in 2014 to €12.00 per square metre in
2015, with rents in the mid-price segment ranging from
€8.92 to €15.98 per square metre. In the popular West
end and Nordend West [20] area near the centre, the
median asking rent rose from €14.47 to €15.00 per square
metre in 2015 following a slight decrease in the previous
year. In the most expensive area of Frankfurt, rents in the
mid-price segment range from €11.76 to €19.44. The traditionally sought-after, central areas of Sachsenhausen
North [16] (€13.96), Altstadt , Ostend [01] (€13.67),
Nordend East, Nordend West [12] (€13.03), Gutleutviertel and Bahnhofsviertel [08] (€13.00) and Bornheim [05]
(€12.38) are in demand and correspondingly expensive.
At €9.51, the lowest-priced rental apartments are available in the western outskirts of the city in the Höchst,
Unterliederbach, Zeilsheim, Sindlingen and Sossen-
Frankfurt
Hesse
Germany
12.00
8.18
6.51
72.0
74.8
68.0
0.6
2.1
3.0
5.0
2.5
2.7
4.4
1.5
1.3
2)
093
CITY PROFILE
n
Asking Rents in FRANKFURT Am Main 2015
City area
Number of
rental offers
Apartment size,
average in m2
13.67
[01] Altstadt, Ostend
371
72.9
[02] Bergen-Enkheim, Fechenheim, Riederwald
387
71.0
9.82
[03] Berkersheim, Preungesheim, Eckenheim
295
75.7
10.82
[04]
Bockenheim
956
70.0
12.84
[05]
Bornheim
442
60.0
12.38
[06]
Dornbusch
282
75.0
12.26
[07]
Gallus
514
86.0
12.06
[08] Gutleutviertel, Bahnhofsviertel
606
78.0
13.00
[09] Höchst, Unterliederbach, Zeilsheim, Sindlingen, Sossenheim
623
65.0
9.51
[10] Nieder-Erlenbach, Nieder-Eschbach, Bonames, Harheim, Kalbach
308
76.0
9.72
[11] Niederursel, Heddernheim, Nordweststadt, F. Berg, Eschersheim
547
68.0
10.50
[12] Nordend East, Nordend West
773
65.0
13.03
[13] Praunheim, Hausen, Ginnheim
398
70.0
10.98
[14]
Riedberg
175
90.0
12.07
[15]
Rödelheim
305
65.0
10.83
[16]
Sachsenhausen-Nord
810
80.6
13.96
1,134
70.0
11.49
[18] Schwanheim, Griesheim, Nied
416
66.0
9.72
[19]
Seckbach
209
65.0
11.99
[17] Sachsenhausen-Süd, Niederrad, Oberrad
[20] Westend North and South, Nordend West
Frankfurt average
heim [09] districts. The largest increase in asking rents
of 9.4 per cent was registered in the area comprising Altstadt and Ostend. However, these average rents should
not conceal the fact that the situation can look completely
different in the micro-locations, as well as in the market
segments. Some 10 per cent of apartments advertised in
1,081
95.0
15.00
10,632
72.0
12.00
Frankfurt have asking rents of almost €16 per square metre and higher. A mere one in 10 apartments have asking
rents below €8.92.
FRANKFURT’S ATTRACTIVENESS RAISES CHALLENGES FOR THE GLOBAL CITY
Despite rising construction activity, strong population growth in recent years has resulted in an unbalanced
housing market in Frankfurt. The housing supply rate is presently 93.7 per cent. There are particular shortages in
the affordable segment and in central districts close to the city centre, which are also particularly popular with
investors. The high demand means that there is now scarcely any perceptible vacancy. The well-developed public
transport network now extends the city’s sphere of attractiveness to a 45-minute radius around the centre.
Industrial and infrastructural sites are being vacated and converted, which will revitalise a number of districts.
094
CITY PROFILE
n
10
14
11
03
13
15
19
02
06
04
20
12
05
01
09
07
08
16
18
17
9.51 – 9.76
9.77 – 10.74
10.75 – 11.04
11.05 – 12.03
12.04 – 12.24
095
12.25 – 12.88
12.89 – 13.43
13.44 – 15.00
CITY PROFILE
n
FREIBURG
Freiburg: The successful green city with
Mediterranean flair
Freiburg has forged a reputation in the fields of solar technology, environmental and climate pro
tection, as well as sustainable construction. The Baden lifestyle, proximity to France and Switzerland
and good educational infrastructure also ensure constant population growth.
Freiburg is situated in the far southwest of Germany and
normally provides its 220,203 inhabitants (end of 2014)
with more than 1,800 hours of sunshine per year. Basel
in Switzerland is just 70 kilometres away while Colmar in
France is within approximately 50 kilometres. The characteristic streams of Freiburg’s Altstadt (Old Town), which
once provided the city with service water and fire-fighting water, amaze almost 1.5 million tourists each year.
The symbol of the city is Freiburg’s Minster, which was
one of the few buildings to survive the heavy bombing
of 27 November 1944 unscathed – the bombing reduced
large parts of the city to rubble and ashes. The rebuilding of Freiburg was sympathetic to the historic cityscape,
with numerous reconstructions contributing to the allure
of the city centre. The University of Freiburg, founded in
1457, has almost 25,000 registered students from more
than 100 nations and has been one of the top nine uni-
versities in Germany since 2007. Freiburg is also home to
renowned research institutions as well as several Fraunhofer and Max-Planck institutes. Freiburg is a vibrant city
with an emphasis on outdoor activities, a varied cultural
and restaurant scene, a number of parks and forest areas
and a well-established education and support infrastructure. “There are two types of people: Those who live in
Freiburg and those who want to move to Freiburg,” residents declare proudly. In contrast with many other cities,
net migration in Freiburg is attributable to almost all cities
and districts of Germany and the number of people who
would potentially relocate to the city is correspondingly
high. According to BBSR projections, the city’s population is expected to rise by 5.8 per cent by 2030 compared
with 2012, while the number of households is predicted to
grow by as much as 10.3 per cent. Freiburg is also a young
city. The proportion of under-30s is 38.2 per cent (Ger-
096
CITY PROFILE
n
FREIBURG
Bicycle traffic accounts for around 28 per cent of overall traffic in Freiburg.
Only Münster in North Rhine-Westphalia has a higher proportion of cyclists among
Germany’s major cities.
many: 30.2 per cent), while only 21.1 per cent of inhabitants are over 60 years old (Germany: 27.4 percent). However, this age structure is expected to change significantly
by 2030 according to the City’s own projections. While
population growth is predicted across all age groups (with
the exception of the 45 to under-60 age group) by far the
strongest increase is expected in the over-60 age groups.
HEALTHCARE AND SUSTAINABILITY
Compared with other cities in Baden-Württemberg, Freiburg is heavily dependent on healthcare and social services. Some 24.1 per cent of employees subject to social
security contributions work in these sectors. Conversely,
manufacturing in Freiburg accounts for a smaller proportion of employment than any other city in Baden-Würt-
097
CITY PROFILE
n
FREIBURG
temberg with 13.3 per cent. Overall, 86.5 per cent of employees subject to social security contributions work in
Freiburg’s services sector. The number of employees increased by 22.2 per cent between 2004 and 2014. Only
Berlin and Leipzig recorded higher growth among the
29 cities analysed in this report. Besides medicine and
healthcare, sustainability has become integral to the image of Freiburg. With 12,000 employees in 2,000 companies, the environmental industry and environmental
research contributes around €650 million to the city’s
economy. The fields of research and development, know
ledge transfer and environmental education are key drivers in developing the city’s portfolio in the sector with a
focus on solar technologies, renewable energy, energy
efficiency, planning and construction and environmental
technology. Freiburg recognised at an early stage that climate protection, energy supply and urban development
should not be managed separately and, for years, has
considered energy-related aspects when developing parts
of the city. The city hopes to reduce harmful emissions
by at least 50 per cent by 2030 and to become climate
neutral by 2050. In addition to individual flagship projects, such as the first energy self-sufficient solar house,
the rotating “heliotrope”, the solar settlement from architect Rolf Disch and the first multi-storey passive residential building in Germany at Bugginger Straße 50, since
1998 Freiburg has also boasted a low-traffic eco-district,
Vauban, in which civic engagement, communal construction, varied architecture and ecological living are prevailing themes. Low-energy construction is obligatory, while
passive construction, plus-energy construction and the
use of solar technology are usually standard. The “Green
City Freiburg” cluster initiative brings together more than
145 participants from the solar and environmental industry. In 2012, Freiburg received the German Sustainability
Award for the most sustainable major city in Germany.
SUPPLY AND DEMAND NOT IN BALANCE
Property built between 1949 and 1978 is by far the most
prevalent period in Freiburg, accounting for 44.8 per cent
of housing. Around one fifth was built before 1948 and
just 8.7 per cent of housing has been built since 2000.
Lettings account for 69.6 per cent of housing in Freiburg.
Overall, the Freiburg market is characterised by significant surplus demand. The active market vacancy rate according to the CBRE-empirica vacancy index stood at just
0.7 per cent in 2014; among the lowest in Germany. The
current peaking demand is partly attributable to the constant rise in refugee figures. The number of completed
residential units in residential and non-residential buildings stood at 677 in 2014 (including residential homes);
significantly below the annual requirement of 1,000 units
identified by the City in its “Handlungsprogramm Wohnen” (Housing Action Programme). As part of the municipal action programme, the City developed strategies in mid-2013 to create a balanced housing market. In
mid-May 2015, the municipal council decided to increase
the proportion of subsidised rental apartments that developers must provide in new projects from 30 to 50 per
cent. The City also considers it essential to designate new
space to cover housing requirements. Such space has
been earmarked for development in the new Dietenbach
district from around 2020. Housing for 11,500 additional
residents is planned over an area covering some 98 hectares. Large residential developments are also currently
098
CITY PROFILE
n
FREIBURG
DISTRIBUTION OF ASKING RENTS IN FREIBURG 2014 AND 2015
2014
4.0
4.2
19.3
14.0
33.7
33.3
29.6
32.5
8.6
10.9
2015
4.7
5.0
40%
30%
20%
10%
0%
under €7.00
€7.00 to 8.99
€9.00 to 10.99
€11.00 to 12.99
€13.00 to 14.99
€15.00 and over
The high rental levels in Freiburg are reflected in the distribution of asking rents.
Almost half of all new lettings are advertised for more than €11.00 per square metre.
under way in the Gutleutmatten district in Haslach, the
Güterbahnhof North urban quarter and the Ganther Campus in Oberau. To control rents on existing housing, Freiburg lowered its cap on rental increases to 15 per cent in
July 2015, extended the general blocking period on landlords serving termination notices on tenants for the purpose of converting rental apartments into condominiums
by five years and introduced the Mietpreisbremse (capping of rents on re-letting) on 1 November 2015.
RISING RENTS IN ALL DISTRICTS
The median exclusive asking rent in Freiburg rose to
€10.91 per square metre in 2015 compared with €10.57 in
the previous year. This places Freiburg level with Stuttgart
and behind only Munich (€14.61) and Frankfurt (€12.00)
in the 29 cities analysed in this report. However, the average purchasing power in Freiburg is not only significantly
below that of the inhabitants of Munich, Frankfurt and
Stuttgart, it is also below the German national average,
Freiburg
Baden-Württemberg
Germany
10.91
7.82
6.51
66.0
75.0
68.0
0.7
1.8
3.0
3.0
3.1
2.7
2.7
1.6
1.3
2)
099
CITY PROFILE
n
FREIBURG
Asking Rents in FREIBURG 2015
City area
Number of
rental offers
Apartment size,
average in m2
[01]
Altstadt
105
60.0
11.67
[02] Brühl, Hochdorf, Landwasser, Mooswald
234
67.4
11.07
[03] Haslach, Weingarten, Stühlinger, Betzenhausen
347
56.6
10.42
[04] Herdern, Neuburg
132
82.0
11.94
[05] Kappel, Waldsee, Günterstal, Wiehre, Oberau
298
66.5
11.52
[06] Opfingen, Tiengen, Munzingen, Waltershofen
104
79.3
8.40
[07] St. Georgen, Rieselfeld, Mundenhof
133
77.0
10.55
1,353
66.0
10.91
Freiburg average
indicating a wide discrepancy between rent and income.
Some 10 per cent of apartments in Freiburg were advertised for at least €13.68 per square metre in 2015. The
highest median rent of €11.94 was found in the traditionally sought-after area comprising Herdern and Neuburg [04]. This area is characterised by a large amount of
Wilhelminian-period properties and villas with extensive
gardens. In recent years, developers have been increasingly acquiring such villa sites and replacing the existing
property with high-value condominiums. With an average floor area of 82 square metre, properties in this area
are the largest in the city. Freiburg’s Altstadt [01] recorded a median asking rent of €11.67 per square metre.
The transformation and restructuring of the entire area
between Platz der Universität, Platz der Alten Synagoge,
the Rotteckring, Fahnenbergplatz, and the victory monu-
ment may result in further rental growth over the coming
years. The least expensive housing in 2014 was found in
the eastern suburbs of Opfingen, Tiengen, Munzingen and
Waltershofen [06], where the median asking rent stood at
€8.40 per square metre.
FREIBURG FOCUSES ON SUSTAINABILITY AND HEALTHCARE
The southernmost major city in Germany benefits from its Mediterranean climate, strong economy and constant
population growth. The geographically favourable location close to the French and Swiss borders not only draws
large numbers of retail tourists to the city from these neighbouring countries, it also promotes collaboration within
the Upper Rhine tri-national metropolitan region. Freiburg’s growth sectors include healthcare, the environmental industry and environmental research. With its universities and educational and research institutions, the city is
also well positioned internationally. The popularity of the university city poses the challenge of providing sufficient
residential development land to satisfy the high demand for housing and to prevent rents from rising even further.
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FREIBURG
02
04
06
07
03
01
05
8.40 – 9.91
9.92 – 10.49
10.50 – 10.68
10.69 – 11.07
11.08 – 11.41
101
11.42 – 11.60
11.61 – 11.74
11.75 – 11.94
CITY PROFILE
n
HALLE
Halle: Demand is on the rise – central areas
are the main beneficiaries
Following a long period of contraction in the population and labour market, the trend in Halle
has finally reversed; the economy, population figures and rents have all returned to tentative growth.
Demand for housing is focused on historical buildings in the centre.
After a long period of crisis for the traditional industrial
city of Halle, vital sectors have stabilised or are even recovering. This is true of chemicals and mechanical engineering as well as food and beverages. Service providers
from various fields, including logistics, media, and biotechnology companies as well as call centres have been
added to the sector mix. The unemployment rate has
fallen from more than 20 per cent to 11.8 per cent (2014)
over the last 10 years. The number of inhabitants has
also been growing since 2011 following 20 years of contraction. However, the population is ageing. The proportion of under-18s is below the German average while the
over-60 age group is relatively larger, which is typical of
the age distribution in eastern German cities. The number of households is also growing – not least because the
average household size continues to decrease in Halle. In
2000, the average was 1.98 persons; by 2014, this had
shrunk to a mere 1.72. Nevertheless, significant decreases
in population and household numbers are projected by
2030. Of the 29 cities studied, only Chemnitz fares worse
than Halle in this respect.
DEMAND FOR RENOVATED OLD BUILDINGS
In the previous decade, vacancy and demolition were the
overriding themes for Halle’s housing providers. The number of inhabitants had fallen by around a quarter in the
city as a whole since 1990. In some districts, population
losses were much higher. The number of inhabitants in
Halle-Neustadt, for instance, declined by around half, and
the population in the southern area of Silberhöhe, dominated by slab construction, remains at around one third of
previous levels. Areas with historical buildings close to the
city centre, such as Glaucha, were also affected by high vacancy rates and substantial standstill during renovation.
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CITY PROFILE
n
HALLE
The medieval, early-modern, and magnificent late 19th and early 20th century
building stock in Halle’s historic old town make it one of the largest architectural
landmarks in Germany.
The (provisional) turnaround in the economy and population has now led to a recovery in the housing market.
The vacancy rate fell from 10.5 per cent to 8.2 per cent
between 2009 and 2014, yet remains the second highest of all the cities analysed in this report after Chemnitz.
In 2015, the median asking rent of €5.63 was 1.8 per cent
higher than in the previous year. This puts Halle on equal
footing with Leipzig and ahead of the two eastern German
cities of Magdeburg (€5.45) and Chemnitz (€5.00), as
well as one western German city, Duisburg (€5.30).
Apartment seekers in Halle have clear location priorities,
which is expressed in the asking rents advertised by landlords. Tenants prefer central locations and renovated his-
103
CITY PROFILE
n
HALLE
torical buildings. The highest asking rents by far were reported in the Mitte and northern city centre areas of Halle
with a median of €6.57 per square metre. This represents
an increase of 3.7 per cent compared with the previous
year; the strongest growth across the entire city. In Mitte,
there are still traces of the middle ages and later periods,
as well as attempts to fashion GDR-era slab constructions
into an Old Town area. The northern part of the centre is
characterised by Wilhelminian-period buildings. In addition to the conventional city-centre service companies,
large parts of the university, the state library, the Leopold
ina Academy of Sciences and the Opera are located here.
There is also no lack of green spaces in the area, which
boasts the botanical gardens, the city park and the banks
of the River Saale. The Mühlweg district is particularly
popular with apartment seekers. This area also accounts
for the majority of the local prime segment. Asking rents
per square metre for the most expensive decile of apartments in the Mitte and northern city centre [01] areas
start from €8.42.
Halle North [02] ranks second, with a median asking rent
of €6.00. However, the median asking rent stagnated in
2015. The part of this district closer to the city centre is
characterised by historical buildings and includes facilities such as the Burg Giebichenstein University of Art and
Design, which stimulate demand. The Paulusviertel area,
which is adjacent to the northern city centre, is also rather
picturesque thanks to its stylish historical buildings nestled among green spaces. Demand for condominiums in
this area has noticeably increased in recent years. The
outer parts of northern Halle are characterised by predominantly small-scale development, as well as slab construction in the small area of Trotha and village-like locations such as Seeben, Tornau, and Mötzlich.
FEWER CONCERNS IN GLAUCHA
The third-ranked area is also largely dominated by historical buildings; the southern city centre [05] with a median
asking rent of €5.71 per square metre – eight cents above
the average for the city as a whole. The area is immediately
adjacent to the City submarket. However, it is separated by
a controversial and dilapidated high street, which is most
likely due for redevelopment. Immediately to the south, the
Francke Foundations, a 300-year-old education and social
institution, are located next to the Federal Cultural Foundation. The surrounding historical district of Glaucha has long
been a cause of concern for the urban development office
due to high vacancy rates and the threat of decay. However,
the situation has improved considerably thanks to urban
planning measures, and a range of Wilhelminian-era buildings have been renovated. The south of the area is characterised by less dense, garden city type development, which
is limited to residential buildings.
The next district in the rental rankings is already below the
citywide average; the east of the city [03] at €5.50 per
square metre. There are barely any dense urban structures
here. The area adjacent to the city centre is dominated
by the main train station and various commercial and
residential areas, as well as numerous allotments in the
Dieselstraße area. On the outskirts are the small districts
of Diemitz, Dautzsch and Reideburg. Parts of the area are
only moderately developed. Kanena and Bruckdorf are still
very village-like. These are separated by a commercial zone
and a shared S-Bahn station. The median asking rent in the
eastern part of the city rose by 0.9 per cent in 2015 following a strong increase of 7.7 per cent in the previous year.
104
CITY PROFILE
n
HALLE
DISTRIBUTION OF ASKING RENTS IN HALLE 2014 AND 2015
2014
5.3
5.2
21.9
20.2
36.0
35.0
24.4
25.9
7.2
8.3
2015
5.3
5.3
40%
30%
20%
10%
0%
under €4.00
€4.00 to €4.99
€5.00 to €5.99
€6.00 to €6.99
€7.00 to €7.99
€8.00 and over
Asking rents remain at a moderate level. More than 60 per cent of the apartments
on the market were listed for less than €6.00 per square metre in 2015. However,
the proportion of listings from €7.00 increased to 13.6 per cent.
AREAS OF SLAB CONSTRUCTION AFFORDABLE
The lowest-ranking locations in terms of asking rents for urban areas in Halle were also those with the largest areas
of Plattenbau buildings (slab construction). Second from
the bottom with an average of €4.99 is the south of the
city [04], which includes the Silberhöhe district. The slab
constructions were built from 1979 and subject to a large
wave of demolition precipitated by severe vacancies during
the last decade which, ironically, started with the building
association “Frohe Zukunft” (“bright future”). Two 22-sto-
rey apartment blocks were among the demolitions. In total,
more than 5,500 homes were demolished. Today, Silberhöhe has recovered from the period of extreme vacancies.
The south of Halle also includes the area around Pestalozzipark with building association and terraced housing, the
Südstadt area with its slab construction and buildings from
the 1950s and 1960s as well as the districts of Ammendorf,
Beesen, Osendorf, Planena, Radewell, and Rosengarten. The
area comprises various leafy residential areas contrasted
with a dense mix of residential and commercial uses.
Halle
Saxony-Anhalt
5.63
5.15
6.51
58.0
59.9
68.0
8.2
7.0
3.0
0.6
1.0
2.7
0.1
0.3
1.3
2)
Germany
105
CITY PROFILE
n
HALLE
Asking Rents in HALLE 2015
City area
Number of
rental offers
Apartment size,
average in m2
[01] Mitte, Northern City Centre
1,290
54.8
6.57
[02]
North
1,195
58.2
6.00
[03]
East
675
61.0
5.50
[04]
South
1,164
57.0
4.99
[05] Southern City Centre
1,382
64.6
5.71
936
57.0
4.79
6,642
58.0
5.63
[06]
West
Halle average
The least expensive district is Halle West [06], which is
located on the opposite side of the Saale and was incorporated into the city in 1990. This includes the residential
areas of Dölau and Heide as well as Heide South, with a
host of individual new buildings. The most prominent area,
however, is Halle-Neustadt, which features extensive Plattenbau buildings and is abbreviated to “Ha-Neu” by residents and outsiders alike. The area has lost nearly half of
its population over the past 25 years, although it is now
home to one in five inhabitants of Halle, and, despite numerous demolitions, still struggles with high vacancy rates
to this day. Even attempts to present the area as part of a
“Twin Cities” concept alongside historic Halle as part of the
2010 International Building Exhibition Saxony-Anhalt did
not alleviate the situation. The median asking rent remains
a mere €4.79 per square metre and rose by only 0.4 per
cent in 2015 compared with the previous year. As a result,
Halle West recorded the second weakest increase in the
city. The most affordable decile of apartments in the area
is advertised at no more than €3.53 per square metre. That
is the lowest figure of any district in the 29 cities included
in this report.
GOOD DEVELOPMENT PROSPECTS IN THE CITY CENTRE
Following 20 years of painful contraction, Halle has emerged as a leaner city and, owing to moderate yet constant positive net migration, has seen a return in population growth in recent years. Vacancy and demolitions
were particularly prevalent in the districts comprising Plattenbau buildings, which are less attractive in terms of
architecture, urban planning, and location. At the same time, the redeveloped city centre stands out as a mixed,
attractive centre with historical flair and high quality of living in some areas. In the foreseeable future, demand
for housing is expected to remain focused here. A good proportion of the remaining Plattenbau may well find
demand in the low-rent segment. However, a city such as Halle must ensure that these do not become deprived
areas by supporting them with appropriate development concepts.
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CITY PROFILE
n
HALLE
02
06
01
03
05
04
4.79 – 4.92
4.93 – 5.12
5.13 – 5.44
5.45 – 5.61
5.62 – 5.75
107
5.76 – 5.93
5.94 – 6.21
6.22 – 6.57
CITY PROFILE
n
HAMBURG
Hamburg: The cosmopolitan, green
and growing city on the water
Both the economy and the population are growing in the Hanseatic City. Hamburg is the core city
of a metropolitan region home to more than 5 million people. Start-ups and corporate relocations add
around 10,000 companies to the city each year.
Water is integral to life in Hamburg, from the noisy and
bustling port to the noble elegance of the Alsterarkaden
shopping arcade and the idyllic green spaces around the
Außenalster (Outer Alster lake). The city is also intersected by a 60-kilometre-long network of canals and dikes.
The proximity of complete opposites is also reflected in
the city districts – the noble Blankenese, the scene in the
Schanze and the working-class neighbourhoods of Wilhelmsburg. Trading in goods from both Germany and
abroad has not only provided the Hanseatic City with financial prosperity but also its cosmopolitan outlook and
awareness of the need to co-operate. Hamburg’s notable
civic engagement is expressed in a system of foundations
that launched the construction of the Elbe Philharmonic
Hall and was instrumental in the contracts between the
Senate, districts and property sector to promote housing
construction. There are currently more than 1,300 foun-
dations based in Hamburg with assets totalling some
€8 billion. On the other hand, scarcely any other city is as
frequently beset with citizens’ initiatives, petitions, and
demonstrations for various needs and interests. However,
ultimately, solutions are normally found that are supported
by a majority. The historic Gängeviertel district, for example, which was sold to an investor in 2008 and is largely
due to be redeveloped with new-build, is currently being
extensively renovated by the City. It is part of the Hamburg
residents’ sense of identity to succeed in creating the new
without destroying the old. This is visibly manifested in
the HafenCity and Speicherstadt districts which, together
with the Kontorhausviertel district, were entered on the
UNESCO World Heritage List in July 2015. The European
Green Capital of 2011 is pursuing its own ambitious climate
objectives. Hamburg aims to reduce its CO2 emissions by
80 per cent to just 4 million tonnes by 2050.
108
CITY PROFILE
n
HAMBURG
Container handling at the port of Hamburg has enjoyed rapid growth.
While, statistically speaking, 1.2 containers per Hamburg resident passed through
the port in 1990, by 2014 this figure had risen to 5.5 per resident.
GROWTH IN THE ECONOMY AND POPULATION
Hamburg is one of the most dynamic metropolises in the
European Union and a magnet for many international companies, institutions and professionals. The city is currently
home to some 250,000 persons from 185 nations, who
have chosen to live and work in Hamburg. Situated in the
Hamburg metropolitan region with more than 5 million in-
habitants, the city has the strongest centrality effect of any
major German city. Between 2012 and 2030, the number
of inhabitants is projected to rise by 5.4 per cent while the
number of households is predicted to grow by 6.7 per cent.
Overall, the City is expecting significant population growth
in the medium term, which is in part due to the large number of refugees likely to remain in Hamburg permanently.
109
CITY PROFILE
n
HAMBURG
Hamburg is also a young city. Almost a third of inhabitants are below the age of 30 while less than a quarter are
older than 60. The number of employees subject to social security contributions rose by 21.9 per cent between
2004 and 2014, which is the fourth-highest increase of all
29 cities studied in this report, behind Leipzig, Berlin and
Freiburg. The unemployment rate is currently 7.6 per cent.
Hamburg’s economic structure is dominated by the service
sector, which employs approximately 84 per cent of employees subject to social security contributions. A variety
of innovative growth sectors can be found in the city. The
port and logistics, life sciences, aviation, media, and IT sectors are particularly strong in Hamburg. However, renewable energy, the maritime industry, and trade with Asia and
particularly China, are also key pillars of the city’s economy. The musical city of Hamburg is also a tourist magnet among major German cities. In 2014, 6.1 million visitors
spent 12 million nights in the city’s 348 hotels.
gers last year. Hamburg Airport will also be home to the
new Hamburg Airport Cargo Centre (HACC), scheduled
for completion by summer 2016, which will have an annual
capacity of 150,000 tonnes of air freight.
With 19 recognised universities under public and private
funding and additional higher education institutions in the
metropolitan region, Hamburg is the academic home to
some 85,000 students. Almost 12 per cent of students
come from abroad. The higher education institutions also
enjoy close collaboration with non-university research
institutions, such as the German Electron Synchrotron
(DESY), the largest research centre in the city, as well as
three Max-Planck institutes and a Leibniz institute. Hamburg is home to numerous innovations. It is little wonder,
therefore, that one of the four German local chambers of
the future European Patent Court is located in the city.
HOUSING POLICY INSTRUMENTS
A CENTRE OF KNOWLEDGE WITH EXCELLENT
INFRASTRUCTURE
Hamburg is situated at the intersection of key European
transport routes between Scandinavia and Western, Eastern, and Southern Europe. The city is well connected globally via water, rail, road, and air. The six-lane extensions of
the A 1 and A 7 motorways and the new River Elbe crossings to the east and west of Hamburg will further improve
the region’s nationwide connections. The port of Hamburg
is the largest sea port in Germany and the second largest
container port in Europe. To cope with the increasing number of tourist cruises visiting the city, Hamburg received a
third berth for large cruise ships in the Cruise Center Steinwerder in June 2015. The terminal building offers sufficient
capacity to turn around more than 4,000 passengers at
a time. The nearby airport handled 14.76 million passen-
From a property investor’s perspective, the security and
stability of the market are reasons to invest in Hamburg. In
a worldwide comparison in 2015, management consultants
PwC and the Urban Land Institute (ULI) Hamburg identified the city as the fourth-most attractive market for longterm, equity-led investment in existing property in Europe
after Berlin, Dublin and Madrid. In the ranking for new investment, Hamburg even placed second after Dublin. The
largest landowners are the City of Hamburg and its public
companies. When disposing of public land, the City makes
consistent use of the instruments of conceptual tendering and exclusive option periods. This means that, following the decision of the selection process, the purchaser has
time to clarify the details necessary for the development
feasibility and financing of a project before completing the
sale contract. During this time, the City will not offer the
110
CITY PROFILE
n
HAMBURG
DISTRIBUTION OF ASKING RENTS IN HAMBURG 2014 AND 2015
2014
14.5
14.6
29.5
29.5
24.5
25.6
17.2
17.6
8.6
8.7
2015
5.7
4.0
40%
30%
20%
10%
0%
under €8.00
€8.00 to €9.99
€10.00 to €11.99
€12.00 to €13.99
€14.00 to €15.99
€16.00 and over
More than half of apartments advertised in Hamburg are priced at €10.00 and
above. In contrast with other major German cities, however, the proportion of
high-priced property listings decreased moderately in 2015.
land to any other interested parties. The objective of the
exclusive option period is to fundamentally simplify prospective development projects and to create planning certainty for all parties.
The active market vacancy rate in the residential market
is just 0.7 per cent, which indicates that there is still significant excess demand. The demand pressure originates
particularly from the districts north of the River Elbe. Con-
sequently, the City has set the objective in its housebuilding programme of creating the conditions for 6,000 new
homes per year. At least 2,000 of these are to be subsidised homes for households with low and middle incomes.
This was the subject of the “Vertrag für Hamburg – Woh
nungsneubau” (Contract for Hamburg – New-Build Housing) agreed with the districts of Hamburg in 2011 for more
and faster residential planning permissions. The City has
also entered into the “Bündnis für das Wohnen in Ham-
Hamburg
Federal State Hamburg
Germany
10.23
10.23
6.51
65.0
65.0
68.0
0.7
0.7
3.0
3.5
3.5
2.7
2.9
2.9
1.3
2)
111
CITY PROFILE
n
HAMBURG
burg” (Alliance for Living in Hamburg) along with the
housing industry associations and tenants’ associations.
Such co-operation in the city is beginning to bear fruit.
HAMBURG IS A TENANTS’ CITY
Almost 6,150 residential units were completed (in new
residential and non-residential buildings) in 2014 and
the 6,000 unit mark was also exceeded in 2013. If the
10,000 or so apartments approved in 2014 are completed,
then the positive trend will continue.
To facilitate housebuilding, the City also repealed its parking space regulation relating to new-build property at the
start of 2014. The directive from the Senate that each development project must comprise at least one third social
housing should also allow social housing to be built in preferred residential locations. To protect the social structure
in individual areas or districts, the City is also implementing social preservation directives. The Mietpreisbremse
(capping of rents on re-letting) was introduced throughout
Hamburg for a period of five years on 1 July 2015. Since the
housing industry does not consider the residential market to be strained in all areas of the city, a survey has been
commissioned to analyse rents in the individual districts.
Should the survey confirm the view of the housing industry,
the directive will be repealed in the corresponding districts.
According to the latest census, Hamburg’s housing stock
comprised a total of 905,381 residential units in 2011. The
majority of these, 721,110 units, were in apartment buildings. A total of approximately 75 per cent of housing in
Hamburg was occupied by tenants according to the census.
Around a quarter of buildings with residential accommodation in Hamburg were built prior to 1949, while almost
48 per cent were built between 1949 and 1978. Just 7.5 per
cent of buildings have been built since 2001. The City commissioned an independent survey to establish demand
for city-centre residential locations. The survey identified
the sustained net migration over many years, particularly
in the 20 to 30-year-olds age group as the main source of
the demand pressure. While foreign immigrants in this age
group are distributed across the entire city, migrants from
other parts of Germany are concentrated in the city centre. Families, on the other hand, are predominantly found
in areas with adequate facilities in terms of kindergartens,
schools, open spaces and local amenities. However, infrastructural connections are still an important element for
this group in order to ensure accessibility to their place of
work. The selective demand means that rents and property
prices are rising more sharply particularly in those areas
that are the focus of the high-income demand group with
urban preferences.
NEW DISTRICTS ARE EXTENDING THE CITY
Factory closures, military withdrawals, and the surrender
of infrastructural areas have provided Hamburg with an
abundance of large areas for which the City can develop
sustainable concepts. The largest urban development project is HafenCity, which has expanded the current city centre by 40 per cent. By 2025, an area of 157 hectares will
be transformed into a vibrant urban quarter with maritime
flair, more than 6,000 apartments, over 45,000 jobs and
two universities. To retain the area’s relation to the water,
it has not been diked but rather safeguarded with artificial wharfs rising eight to nine metres above sea level. Following a few delays, the new symbol of Hamburg, the Elbe
Philharmonic Hall, is scheduled to be completed here with
its two concert halls, a five-star hotel, and around 45 apartments by 2017. Besides HafenCity, the “Mitte Altona” area
is another to offer the most potential for sustainable urban development over a site totalling 75 hectares. The
former goods depot and surrounding land, which will be
vacated owing to the relocation of the mainline from the
current Altona station to Diebsteich is to be redeveloped
as a new mixed-use district with around 3,600 homes and
112
CITY PROFILE
eight hectares of green and open spaces. The International
Building Exhibition (IBA) and the urban development master plan “Sprung über die Elbe” (Leap across the Elbe) have
opened up potential for the area south of the Elbe, comprising Veddel, Wilhelmsburg and the Harburg inland harbour, to transform themselves from a long forgotten district to an area where people will happily live, work and
reside. Over the coming years, the City intends to return
its focus on urban development to the areas of Hammerbrook, Borgfelde, Hamm, Horn, Rothenburgsort, Billbrook,
and Billstedt in the eastern part of Hamburg. The objective is to build an additional 15,000 to 20,000 homes and
to strengthen the area’s economic potential. In December
2014, the City of Hamburg joined forces with the housing
industry associations to form the “Bündnis der Quartiere”
(Districts Alliance), with the objective of developing and
strengthening these urban quarters in collaboration going
forward. The first two pilot quarters are Rothenburgsort
and Hamm to the south.
ASKING RENTS REMAIN STABLE
The average exclusive asking rent in Hamburg in
2015 stood at €10.23 per square metre, which was slightly
below the previous year’s level of €10.26 and the 2013 figure of €10.27. Three of the 35 urban district studied
showed a decline in the median asking rent of more than
2 per cent compared with the previous year while the corresponding figure in 14 other areas either rose or fell by
1.0 per cent. The largest differential compared with the
previous year was seen in the large residential area of
Mümmelmannsberg [20] in the district of Billstedt in the
east of Hamburg. However, owing to the overall small sample size, this increase might not be considered significant.
n
HAMBURG
Strong increases were also witnessed in the Allermöhe,
Kirchwerder, Ochsenwerder, Reitbrook, Neuengamme,
Altengamme, and Curslack [01] areas (+5.4 per cent), the
Neustadt [21] district (+5.0 per cent), which is apportioned
to the Altstadt, and Rissen [26] (+4.6 per cent), which lies
adjacent to Blankenese in the western outskirts. The highest median asking rents in 2015 were reported in the area
comprising HafenCity, Altstadt (West), and Speicherstadt
[13] with €15.75 per square metre, followed by the areas of
Rotherbaum (East) and Harvestehude (East) [27] around
the Außenalster with €14.50 per square metre. Asking
rents below €8.00 were registered only in Mümmelmannsberg and the area south of the Elbe comprising Finkenwerder, Neuenfelde, Seehof, Cranz, Neugraben-Fischbeck,
and Hausbruch [11], where the median asking rent stood
at €7.60 per square metre. There is a wide spread of asking rents across all city districts in Hamburg. The most expensive rents in the prime segment were registered in the
area comprising HafenCity, Altstadt (West), and Speicher
stadt, with prime rents starting from €19.00 per square
metre, as well as in Rotherbaum (East) and Harvestehude
(East), where prime rents started at €18.50. Prime asking
rents of at least €14.00 were reported in 13 of the 35 of the
combined city areas studied. The average dwelling size of
properties listed ranges from 56 square metre in the area
comprising Dulsberg and Bramfeld [08] up to 103.1 square
metre in Rotherbaum (East) and Harvestehude (East). The
average dwelling size in the city was 65 square metre.
HAMBURG IS A COSMOPOLITAN, ECONOMICALLY STRONG AND GREEN CITY ON THE WATER
Hamburg is one of the most dynamic metropolises in the European Union and a magnet for many international
companies. Between 2012 and 2030, the number of inhabitants is projected to rise by 5.4 per cent while the number
of households is predicted to grow by 6.7 per cent. The European Green Capital of 2011 is pursuing its own ambitious climate objectives. The city intends to reduce its CO2 emissions by 80 per cent by 2050. Hamburg’s economic
structure is dominated by the service sector, which employs more than 80 per cent of employees. Some 75 per cent
of apartments in Hamburg are occupied by tenants. The City’s objective to create the conditions for 6,000 new residential units per year has been achieved in recent years. However, there remains surplus demand, particularly in the
areas north of the River Elbe.
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CITY PROFILE
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HAMBURG
Asking Rents in Hamburg 2015
City area
[01] Allermöhe, Kirchwerder, Ochsenwerder, Reitbrook, Neuengamme,
Altengamme, Curslack
[02] Alsterdorf, Barmbek North
[03] Altona, Altona-Altstadt
Number of
rental offers
Apartment size,
average in m2
441
73.7
8.65
1,222
60.0
10.71
647
60.0
12.50
1,454
59.0
10.00
[05] Bahrenfeld, Altona North
610
65.0
11.65
[06] Bergedorf, Lohbrügge, Billwerder
664
64.5
9.23
1,157
57.0
8.94
9.29
[04] Altstadt (East), Klostertor, Borgfelde, Hamm, Eilbek
[07] Billstedt, Horn, Billbrook, Moorfleet, Rothenburgsort, Veddel
798
56.0
[09] Eidelstedt, Niendorf, Schnelsen
1,273
67.0
9.79
[10] Eppendorf, Winterhude
1,194
70.0
13.04
[11] Finkenwerder, Neuenfelde, Seehof, Cranz, Neugraben-Fischbek,
Hausbruch
498
68.0
7.60
[12] Fuhlsbüttel, Langenhorn (South), Hummelsbüttel, Poppenbüttel
1,061
69.1
9.57
310
98.1
15.75
1,806
62.0
8.74
878
67.0
13.45
[16] Hoheluft-West, Eimsbüttel
1,073
60.0
12.50
[17] Hohenfelde, Barmbek South
1,140
59.0
11.40
[18] Iserbrook, Sülldorf
182
64.5
10.41
[19] Langenhorn (North)
221
66.0
8.94
[08] Dulsberg, Bramfeld
[13] HafenCity, Altstadt (West), Speicherstadt
[14] Harburg, Moorburg, Rönneburg, Langenbek, Eißendorf, Heimfeld,
Marmstorf, Wilstorf
[15] Harvestehude (West), Rotherbaum (West), Sternschanze,
St. Pauli, Neustadt (South)
63
70.7
7.20
120
86.6
13.65
[22] Ohlsdorf, Wellingsbüttel
457
75.0
10.33
[23] Osdorf, Lurup
329
69.0
8.86
[24] Othmarschen, Groß Flottbek, Nienstedten, Blankenese
836
92.0
12.65
[25]
Ottensen
453
78.0
13.54
[26]
Rissen
227
61.0
9.67
[27] Rotherbaum (East), Harvestehude (East)
352
103.1
14.50
[20]
Mümmelmannsberg
[21]
Neustadt
235
84.6
13.00
1,325
65.0
12.98
246
65.0
8.73
[31] Stellingen, Groß Borstel, Lokstedt
1,300
65.0
11.04
[32] Tonndorf, Rahlstedt, Farmsen-Berne
2,043
67.0
8.89
[33] Volksdorf, Sasel, Bergstedt, Wohldorf-Ohlstedt, Duvenstedt,
Lemsahl-Mellingstedt
631
76.0
9.70
[34] Wandsbek, Marienthal, Jenfeld
990
64.0
9.85
[28] St. Georg
[29] Stadtpark, Uhlenhorst
[30]
Steilshoop
[35]
Wilhelmsburg
Hamburg average
114
414
60.0
8.16
26,650
65.0
10.23
CITY PROFILE
n
HAMBURG
19
33
12
09
22
31
26
18
32
29
16
05
25
08
10
23
24
30
02
04
13
11
34
28
21
03
17
27
15
07
20
35
06
14
01
7.20 – 8.73
8.74 – 8.94
8.95 – 9.65
9.66 – 10.00
10.01 – 11.13
115
11.14 – 12.58
12.59 – 13.35
13.36 – 15.75
CITY PROFILE
n
H A N OV E R
Hanover: The green trade fair city
Besides its exhibition centre, the city on the banks of the River Leine boasts a wide science and
research landscape including internationally renowned institutes. Despite the dynamic growth in
the housing market, rents in the city of 523,642 inhabitants are relatively modest.
The capital of Lower Saxony is the core city of a region inhabited by a total of almost 1.13 million people as at the
end of 2014. In 2014, the city celebrated the 300th anniversary of the Personal Union. In October 1714, the Elector of Hanover became George I by ascending the British
throne in London. This was followed by 123 years of joint
rule of the Electorate of Hanover and the Kingdom of Great
Britain by a common monarch, resulting in a range of political influences and exchange. Restraint, a penchant for
understatement and a policy of small steps may all have
contributed to the cliché of Hanover as a “boring” city.
Hanover is a quiet achiever. Its strengths and potential only
become clear at second glance. In addition to the universities, with more than 40,000 students, and related research
institutions, the 34 non-university and private research
institutes as well as company research departments also
play an important role. The city is particularly well represented in the fields of medicine and engineering. Thanks
to the extensive science and research infrastructure, local
companies benefit from numerous opportunities for co-operation when it comes to both research and development
and the education and training of qualified professionals.
TRADE FAIR CITY WITH A ROBUST ECONOMY
Hanover is a leading international trade fair city. The exhibition centre with some 470,000 square metre of covered
exhibition space is the largest in the world. Leading trade
fairs include CeBIT, the Hannover Messe and Agritechnica.
The economic structure in Hanover is dominated by the automotive industry, energy, information and communication
technology, healthcare, creative industries, and manufacturing technology. The logistics industry, financial services
and information services as well as the trades all contribute significantly to the labour market. Operations of Hanover’s 23,000 companies are roughly divided into 75 per
cent commerce and services and 25 per cent industry and
manufacturing. Global companies such as Volkswagen
Commercial Vehicles, Wabco, Continental, TUI and Bahl-
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H A N OV E R
Hanover is one of Germany’s greenest major cities. Over 13 per cent of its area
is dedicated to green spaces; 12 per cent is woodland and forest. Farming and horticulture take up around 16 per cent, while water makes up 3.5 per cent.
sen are located here, as are broad-based technology-oriented SMEs (small and medium-sized enterprises). A key
indicator of economic growth and prosperity in a region
is growth in employment. From 2004 to 2014, the number of employees subject to social security contributions
increased by 12.9 per cent. More than 300,000 employees
subject to social security contributions worked in Hano-
ver in 2014, which represented a 2.6 per cent increase on
the previous year. However, the rather high unemployment rate of 10.2 per cent (2014), attributable to structural
changes in previous years, is only falling at a modest rate.
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H A N OV E R
GREEN CITY, AMBITIOUS CLIMATE OBJECTIVES
GROWING DEMAND FOR MODERN HOUSING
Almost 50 per cent of the total area of Hanover is made
up of green and open spaces. The city forest of Eilenriede,
the Maschsee lake and the rivers Leine and Ihme are other
elements that enhance the city setting. Since 2011, Hanover has been the “Federal Capital of Biodiversity”. The
City and region have jointly set a goal to create an almost
carbon-neutral region by 2050 under the auspices of the
“Master plan – 100 per cent for climate protection”. When
it comes to urban development, Hanover is also aiming for
sustainability. New developments preferably take place on
gap sites and brownfield sites. Drafting of the urban development concept “Mein Hannover 2030” (My Hanover
2030) commenced in mid-2015. The city council will begin consultation on the draft concept in spring 2016. One
of the largest residential district developments in the coming years will be Wasserstadt Limmer. Up to 1,800 homes
could be constructed on the 230,000 square metre site
of the former Continental plant on the banks of the River
Leine. The plans are currently under revision as part of
the “Wohnkonzept 2025” (Living Concept 2025) initiative
with citizen participation. The site of the former Oststadtkrankenhaus hospital in Groß-Buchholz is to be re-developed with around 400 residential units, while the superfluous expansion area at the Annastift facility in Mittelfeld
will be transformed into the new “Vitalquartier” district
with around 370 apartments from the end of 2016. On
the former Telekom site in Kleefeld, almost 220 residential units will be developed by mid-2018. Otherwise, urban
development is focused on fragmented central areas with
mixed uses such as the Klagesmarkt, Hohn Ufer, Marstall
and Köbelinger Markt areas.
According to the 2011 census, the housing stock in
Hanover comprised 65,652 residential buildings with
282,007 residential units, of which 73 per cent were rental
apartments. More than half of the housing stock was constructed during the post-war period between 1949 and
1978. Around 86 per cent of housing has three or more
rooms. Studios are rare, comprising only around 6 per cent
of the market. The housing market in Hanover has been
regarded as rather quiet for many years. However, since
the end of 2005, Hanover’s population has grown continuously. From 2012 to the end of 2014 alone, the number of
inhabitants increased by 2.8 per cent. Population growth
of 3.7 per cent is projected for the period from 2014 to
2030. This trend has not been matched by a corresponding volume of new build. An average of only 350 or so
residential units were completed between 2008 and 2011.
New-build housing construction only gathered pace again
from 2012 with around 880 new units (in new residential
and non-residential buildings excluding residential homes)
during the year and almost 640 additional new units in
2013. The active market vacancy decreased from 2.6 to
2.0 per cent between 2009 and 2014. This has resulted in
increasingly scarce supply and rising rents in the housing
market. An additional challenge for the city at present is
the accommodation of refugees.
The median exclusive asking rent in Hanover was just
€6.58 per square metre in 2012, rising to €7.50 in 2015,
which is in the mid-range of the 29 cities analysed for the
purposes of this report. “Wohnkonzept 2025” was formulated to counteract price growth in the city of Hanover. The City intends to add approximately 8,000 additional residential units by the year 2025. Furthermore,
the development of existing stock is also on the City’s
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DISTRIBUTION OF ASKING RENTS IN HANOVER 2014 AND 2015
2014
2.2
1.7
26.1
19.3
40.6
40.2
18.8
23.1
7.0
8.8
2015
5.1
6.9
50%
40%
30%
20%
10%
0%
under €5.00
€5.00 to €6.49
€6.50 to €7.99
€8.00 to €9.49
€9.50 to €10.99
€11.00 and over
Asking rents in Hanover are of a moderate level. Some 61 per cent of residential
lettings in 2015 were priced below €8.00 per square metre. However, the proportion
of higher-priced listing is on the increase.
agenda. Within the scope of a wide-reaching urban renewal process, the housing stock is to be modernised and
the available inventory of affordable housing maintained
and extended. Parts of the Hainholz, Sahlkamp-Mitte and
Stöcken districts are currently being upgraded as part of
the “Soziale Stadt” (Social City) programme, while the
“Stadtumbau West” (Urban Renewal West) programme is
improving the areas of Central Ihme, Limmer-East, Wasserstadt, and Vinnhorst-Mitte.
The Oststadt and Südstadt, List, Linden, Zooviertel, and
Kirchrode areas of Hanover are in high demand. The most
expensive median exclusive asking rents of €9.99 per
square metre were found in the Zoo [14] district. The
trendy, inner-city district adjacent to the zoo, city park
and city forest of Eilenriede was the site of President Paul
von Hindenburg’s retirement. Former Chancellor Gerhard
Schröder also lived here with his family for some time.
Asking rents of at least €8.00 were found in the Mitte,
Hanover
Lower Saxony
7.50
6.00
6.51
65.2
70.0
68.0
2.0
3.4
3.0
1.9
3.0
2.7
1.4
1.1
1.3
2)
Germany
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H A N OV E R
Asking Rents in Hanover 2015
City area
Number of
rental offers
Apartment size,
average in m2
[01] Ahlem, Badenstedt, Davenstedt, Limmer
302
60.0
6.67
[02] Bemerode, Wülferode, Döhren-Wülfel
387
67.0
7.75
[03] Herrenhausen-Stöcken, Vinnhorst, Hainholz, Vahrenwald
598
60.6
6.94
[04] Isernhagen, Vahrenheide, Bothfeld
230
68.0
6.69
[05] Kirchrode, Anderten
217
73.0
7.92
[06] Kleefeld, Heideviertel, Groß-Buchholz
469
65.8
7.51
84
66.0
7.72
[08] Linden North, Linden South
272
65.0
7.44
[09]
List
442
70.0
8.00
[10] Misburg, Buchholz-Kleefeld
208
65.2
7.20
[11] Mitte, Oststadt, Nordstadt
695
65.0
8.14
[12] Ricklingen, Wettbergen, Mühlenberg
377
65.0
6.74
[13] Südstadt, Bult, Maschsee, Calenberger Neustadt
546
72.5
8.10
[07]
Lahe
[14]
Zoo
Hanover average
135
80.0
9.99
4,962
65.2
7.50
Oststadt, and Nordstadt [11] areas (€8.14), as well as in
Südstadt, Bult, Maschsee, and Calenberger Neustadt [13]
(€8.10) and List [09] (€8.00). The lowest median exclusive asking rents of €6.67 per square metre were seen
in the western outskirts in the area comprising Ahlem,
Badenstedt, Davenstedt, and Limmer [01]. Only marginally more expensive at €6.69 was the area in the northern
outskirts comprising Isernhagen, Vahrenheide, and Bothfeld [04]. The median asking rent remained stable in the
area comprising Kleefeld, Heideviertel, and Groß-Buchholz [06] (+0.7 per cent), while rents in 12 out of 14 areas
rose by more than 3 per cent.
THE TRADE FAIR, SCIENCE AND RESEARCH CITY HAS GREAT POTENTIAL
Hanover is a leading international trade fair city with a wide research and scientific landscape. The eastward
expansion of the European Union has moved Hanover closer to the centre of Europe. Almost 50 per cent of the
total area of Hanover is made up of green and open spaces. By 2050, the City and region aim to become almost
climate-neutral. The positive population growth and limited new construction activity in the housing market are
resulting in shorter supply and rising rents, although these are not above average among the 29 cities studied.
The “Wohnkonzept 2025” initiative and “Mein Hannover 2030” urban development concept have been formulated
to shape Hanover’s future development.
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CITY PROFILE
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H A N OV E R
04
07
03
09
11
01
10
14
06
08
05
13
12
02
6.67 – 6.72
6.73 – 7.00
7.01 – 7.41
7.42 – 7.62
7.63 – 7.77
121
7.78 – 7.98
7.99 – 8.12
8.13 – 9.99
CITY PROFILE
n
KARLSRUHE
Karlsruhe: The technology hotspot
The second largest city in Baden-Württemberg is one of the leading technology locations in
Germany. The two highest German courts, the Federal Constitutional Court and the Federal Court,
are based in the city. Demand for urban residential property is high.
Innovation and entrepreneurship have a long tradition
in the fan-shaped city of Karlsruhe. In 1715, Karl Wilhelm, Margrave of Baden-Durlach, designed Karlsruhe
on the drawing board as a model city with the palace at
its centre of a “fan” consisting of 32 radial roads. Thanks
to policies of freedom of trade, tax relief, and freedom of
religion, the resourceful sovereign successfully attracted
new residents from across Europe. Karlsruhe attained
city status as early as 1901 with 100,000 inhabitants. The
scientific spirit inspired other scientists of Karlsruhe to
create inventions that changed the world. Baron Drais
von Sauerbronn, known as “the Mad Baron”, invented the
trolley, implementing the two-wheel principle for the first
time; Heinrich Hertz discovered electromagnetic waves,
the basis of current information technology, and the University of Karlsruhe received the first e-mail in 1984, thus
bridging the way to the Internet. Karlsruhe is not only an
excellent research location, but also offers a good quality
of life. This is thanks to the proximity to the Black Forest,
Alsace and the Palatinate as much as the mild climate,
vast green spaces and rich cultural life.
THINK TANK WITH A PRACTICAL APPROACH
Karlsruhe’s central location in Europe is a competitive
advantage for the city. The connection to the ICE main
lines and the TGV, the Karlsruhe/Baden-Baden Airport,
as well as an extensive public transport network, all contribute to the city’s excellent overall infrastructure. Almost 100,000 people commute into the city from the
surrounding area every day. As part of a comprehensive
122
CITY PROFILE
n
KARLSRUHE
Karlsruhe, in the federal state of Baden-Württemberg, is the largest location for
crude oil processing in Germany. One in five litres of petrol produced in Germany
comes from Karlsruhe.
urban development project the “Kombilösung” (combined
solution) in the city centre, by 2018/2019 a rail tunnel
will be constructed beneath the pedestrian zone in Kaiserstraße along with a landscaped tram route crossing a
road tunnel in Kriegsstraße. This will not only optimise
public transport links but will convert the main shopping
street, Kaiserstraße, into a pure pedestrian zone. With
the university, the Karlsruhe Institute of Technology (KIT),
a wide range of colleges of higher education, research
institutions and numerous outstanding high-tech enterprises, the city has a high density of innovation centres.
Networks provide a stimulating climate for start-ups and
efficient technology transfer. More than 40,000 students were enrolled in the city in the winter semester of
123
CITY PROFILE
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KARLSRUHE
2014/2015. One of the main research areas is nanotechnology, particularly at the Karlsruhe Institute of Technology (KIT), the DFG Centre for Functional Nanostructures
(CFN), and the Institute for Nanotechnology at the University of Strasbourg. The Fraunhofer-Gesellschaft and
Leibniz Association are also represented with research
institutes in the city. The economy of Karlsruhe benefits
greatly from its proximity to research institutions thanks
to intensive knowledge and technology transfers and the
availability of highly skilled professionals. The strongest
employment sectors include healthcare, retail, education, and information technology services. An unemployment rate of only 5.5 per cent, continuously improving
employment figures (the number of employees subject
to social security contributions rose by 17.7 per cent from
2004 to 2014) and the per capita purchasing power of
€22,738 demonstrate that Karlsruhe is a prospering location. Global players such as Siemens, Bosch, and Michelin
co-exist with high-performing SMEs (small and mediumsized enterprises).
REQUIRED NEW-BUILD QUOTA NOT MET
Thanks to the city’s attractiveness, the population of
Karlsruhe grew by 2.8 per cent between the end of
2011 and the end of 2014, reaching 300,051 inhabitants.
The number of households currently stands at almost
175,500, almost 54 per cent of which are single-person
households, which is among the highest proportions in
the cities studied in this report. Projections for the period
from 2012 to 2030 assume a growth rate in the number of households of 3.5 per cent. The age structure is
strongly characterised by a high number of young adults
of student age between 20 and 29. However, the proportion of senior citizens aged 65 and older has risen consistently in recent years while the number of young persons
below the age of 18 has fallen over the last 10 years. The
2011 census indicates a total of 42,044 buildings with
residential space and 151,648 homes in Karlsruhe. Some
14.5 per cent of these buildings were constructed prior to
1919 and an equal proportion was built between 1919 and
1948. A further 43.0 per cent of the buildings were constructed between 1949 and 1978. Despite brisk construction activity in the subsequent years, this volume has
not been reached since. Only 8.9 per cent of buildings
were constructed between 1979 and 1986, and a further
12.2 per cent were built between 1987 and 2000. Only
slightly more than one per cent of all buildings were completed between 2009 and 2011. The number of housing
completions (in residential and non-residential buildings
including residential homes) stood at almost 740 new
units in 2014. More than half of the new residential
units completed were new-build apartments in apartment buildings. For years, total construction activity for
Karlsruhe has remained below the new rate of around
1,000 homes per year required to maintain a balanced
housing market. This volume was last approximately
reached in 2000 with around 960 home completions. The
active market vacancy rate in apartment buildings in the
city now stands at a mere 0.9 per cent (2014).
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KARLSRUHE
DISTRIBUTION OF ASKING RENTS IN KARLSRUHE 2014 AND 2015
2014
0.5
0.7
8.7
8.3
44.3
41.3
34.1
34.8
8.9
11.6
2015
3.5
3.3
50%
40%
30%
20%
10%
0%
under €5.00
€5.00 to €6.99
€7.00 to €8.99
€9.00 to €10.99
€11.00 to €12.99
€13.00 and over
Karlsruhe is among the more expensive cities in this report. More than three
quarters of asking rents in 2015 ranged between €7.00 and €10.99 per square metre,
while only 9.0 per cent were below €7.00.
HOUSING SHORTAGE DRIVES INCREASE IN RENT
The “return to the city” trend is causing very high demand for urban residential accommodation in Karlsruhe.
This quantitative and qualitative trend, which has been
in evidence for some 10 years, had thus far been partly
absorbed by the large conversion areas of Südstadt East,
Kirchfeld North (Neureut) and Knielingen 2.0 as well
as via the zoning of new development areas. In its 2015
status report, “Living and Building in Karlsruhe”, the city
concluded that a total of 20,700 new apartments have
to be built by 2030 in order to create a balanced housing market. However, current residential development
sites only allow for 12,500 apartments. The city is therefore anticipating further increases in rental and purchase
price levels until 2030. The Mietpreisbremse (capping
of rents on re-letting) was introduced for new lettings
of existing apartments in Karlsruhe on 1 November. The
districts of Mühlburg, Alter Schlachthof, Rintheimer Feld,
Karlsruhe
Baden-Württemberg
Germany
8.97
7.82
6.51
72.0
75.0
68.0
0.9
1.8
3.0
2.4
3.1
2.7
1.6
1.6
1.3
2)
125
CITY PROFILE
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KARLSRUHE
Asking Rents in Karlsruhe 2015
City area
[01] Beiertheim-Bulach, Südwest-Stadt
[02] Daxlanden, Mühlburg, Oberreut, Alte Heidenstückersiedlung
[03]
Durlach
[04]
Grötzingen
[05] Grünwettersbach, Palmbach, Stupferich, Wolfartsweier,
Hohenwettersbach
[06] Hagsfeld, Rintheim
Number of
rental offers
Apartment size,
average in m2
164
78.0
9.42
59
70.0
8.44
188
70.0
8.80
41
75.6
8.00
86
79.0
7.93
96
69.3
8.57
[07]
Knielingen
105
80.0
8.67
[08] Neureut, City North
112
63.0
8.96
[09] City Northwest, Grünwinkel
199
70.0
8.75
[10] City East, Waldstadt, City Centre
182
65.5
9.13
[11]
Südstadt
299
75.0
9.41
72
81.0
8.82
232
75.0
9.45
1,835
72.0
8.97
[12] Weiherfeld-Dammerstock, Rüppurr
[13] Weststadt, City Centre
Karlsruhe average
and Durlach Aue were designated as redevelopment
areas in Karlsruhe in 2015.
The median exclusive asking rent for the city as a whole
increased from €8.85 in 2014 to €8.97 per square metre in 2015. The highest median exclusive asking rent of
€9.45 per square metre was found in the Weststadt and
city centre [13] areas. This can be attributed to the trend
towards urbanisation and particularly the low supply.
Similarly high median asking rents are found in the area
comprising Beiertheim-Bulach, and Südwest-Stadt [01]
(€9.42) as well as Südstadt [11] (€9.41). Both districts
have a high proportion of Wilhelminian-era buildings,
urban charm and green spaces. Südstadt also includes the “City Park” development area where around
2,800 new apartments have been completed in recent years. The least expensive median asking rent of
€7.93 was found in the area comprising Grünwettersbach,
Palmbach, Stupferich, Wolfartsweier, and Hohenwettersbach [05] on the south-eastern periphery of the city,
which consists of various districts with small-scale development. However, the supply here was also very scarce
with fewer than 100 apartments.
A PROSPERING LOCATION WITH STRONG ECONOMIC AND RESEARCH PROSPECTS
Karlsruhe, with its 300,051 inhabitants,is the second-largest city in Baden-Württemberg. Formerly a royal seat
and city of government officials, Karlsruhe has transformed into a technology hotspot. The city’s central location in Europe, strong economy and high density of innovation centres are key factors in its competitiveness, as
are the mild climate, vast green spaces and rich cultural life. The economy of Karlsruhe benefits greatly from its
proximity to research institutions thanks to intensive knowledge and technology transfers and the availability
of highly skilled professionals. For years, construction activity has remained well below the new rate of around
1,000 homes per year required to maintain a balanced housing market, despite a growing population. Consequently, rents are on the rise, particularly in the city centre and surrounding areas.
126
CITY PROFILE
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KARLSRUHE
07
08
06
04
10
13
09
02
11
03
01
12
05
7.93 – 8.22
8.23 – 8.57
8.58 – 8.71
8.72 – 8.80
8.81 – 8.89
127
8.90 – 9.13
9.14 – 9.41
9.42 – 9.45
CITY PROFILE
n
KIEL
Kiel: Service industry and population
growing – the housing market is following
The state capital of Schleswig-Holstein offers some attractive locations near the Förde, Landtag, university and city centre, which are increasingly favoured by employees of local high-growth industries.
On the outskirts, however, the recovery has been sluggish.
Kiel, once dominated by shipyards and mechanical and
electrical engineering, has successfully navigated a period
of structural change. The total workforce of the manufacturing sector has more than halved in 20 years. However,
this loss has been more than offset by the growth of the
service industry. Sectors in the city with strong growth potential include marine and environmental technology, the
healthcare industry/medical technology, and the information, communication and biotechnology industries as well
as multimedia and shipyard technology. The low point in
the number employees subject to social security contributions and the peak of unemployment occurred in 2005.
Since then, the unemployment rate in Kiel has fallen by
around a third and is now at its lowest in 22 years by seasonal comparison at 10.1 per cent.
The population bottomed out in 2000 and has since increased by more than 13,000. From the end of 2011 to the
end of 2014, the number of inhabitants rose by 2.3 per
cent, which was ahead of the German average (1.1 per
cent). Natural population growth in Kiel has been negative
in recent years, meaning that the increase is exclusively
attributable to positive net migration. Thanks to the University of Kiel, the group of 18 to 29-year-olds is particularly strongly represented in the city. This age group accounts for 21.3 per cent of the population in Kiel, which is
significantly above the national average of 14.0 per cent.
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The City of Kiel is a major location for the cruise ship industry. The number
of cruise passengers visiting the city has risen eightfold from 44,000 in 1994 to
354,000 in 2014.
LIVING BETWEEN POLITICS AND SCIENCE
The improved employment situation and growing population have also revived the housing market. The median
asking rent per square metre increased by 6.2 per cent
since 2012, breaching the €7.00 mark by three cents, but
stagnated in 2015. The vacancy rate decreased by more
than a quarter between 2009 and 2014 and now stands at
1.7 per cent. Since the economic and budgetary forecasts
remain positive, further growth in rental levels is expected
for Kiel, especially in good locations, since the potential for
new-build is limited owing to the already dense development and demand is focused on existing properties.
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The area comprising Ravensberg, Brunswik, Düsternbrook,
and Blücherplatz [07] stands out in a number of ways. It is
located north of the centre and is home to the state parliament and most government ministries, the university and
numerous private service companies. The most prestigious residential areas of the city are located between the
Förde and the University district, flanked by more attractive urban neighbourhoods to the west. The median asking rent per square metre stands at exactly €8.00. The
prime segment is particularly pronounced. Asking rents
for the most expensive decile of apartments were at least
€10.33 per square metre in 2015. The most affordable
decile in this area is advertised at up to €6.61, meaning
that students are having increasing difficulties paying for
rents around the university.
POPULAR CITY, COVETED GREEN SPACES
The city centre with its Altstadt (Old Town) district and
peripheral Vorstadt areas, along with Exerzierplatz and
Damperhof [01], ranks second in terms of asking rents.
These comprise Kiel’s most urban and densely built-up
districts, which are also home to or are adjacent to some
open spaces such as Hiroshimapark, Schrevenpark, and
the banks of the Kieler Förde (Kiel Fjord) – although parts
of this are not accessible. The median asking rent in the
city centre rose by 2.1 per cent in 2015 to €7.73, which was
a relatively brisk increase by Kiel standards. In the more
attractive locations, there is quite a pronounced prime
segment. The area to the west and south of the city centre including Schreventeich and Südfriedhof [10] ranks in
third place. The median asking rent stands at €7.50 per
square metre, driven largely by the relatively central location. Development here is characterised by long stretches
of sometimes rather narrow blocks of historical buildings.
The area is also intersected by five arterial roads. On the
other hand, there are many green spaces, especially in extensive small garden areas and in the Schrevenpark. The
top segment of the market is concentrated in these areas and the most expensive decile shows asking rents of
€9.47 per square metre or higher. The median asking rent
across overall market in the area stagnated in 2015, as did
the figure for the entire city.
Wik [12], in fourth place, is the highest-ranked area with
suburban character. There is an attractive area between
Düsternbrook and Ravensberg, the Kiel Canal and the
Kieler Förde, even though large areas near the waterfront
are used for commercial and military purposes. The majority of apartment buildings in this district were built after the war, featuring the advantages and disadvantages
typical for buildings of this era. On the one hand, leafy and
open spaces with plenty of daylight between the rows of
buildings. On the other hand, limited urban qualities and
larger, noisy roads. However, the majority of the post-war
building stock has now been modernised, resulting in a
median asking rent of €7.33.
SPRAWLING SUBURBAN DISTRICTS
The median asking rent in the sprawling southwestern
outskirts of Russee, Hassee, and Gaarden-Süd [08] is
€0.19 below this figure. There is a significant high spread
between the lower and upper segments here. The least
expensive decile of apartments is advertised at up to
€5.57 per square metre, including areas adjacent to the
busy commercial streets in central Hassee. Asking rents
in the most expensive decile start from €9.00. Due to the
predominantly small-scale development, the market in the
rural districts of Meimersdorf, Moorsee, Rönne, and Wellsee [05] is straightforward. Landlords can find tenants at
a median asking rent of €7.06 per square metre thanks to
the many idyllic, quiet areas and generous green spaces.
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DISTRIBUTION OF ASKING RENTS IN KIEL 2014 AND 2015
2014
4.4
3.3
29.9
30.4
37.8
38.3
18.5
18.9
6.4
6.5
2015
3.1
2.6
40%
30%
20%
10%
0%
under €5.00
€5.00 to €6.49
€6.50 to €7.99
€8.00 to €9.49
€9.50 to €10.99
€11.00 and over
The general stability of asking rents across the city as a whole is also reflected
in the distribution of rents. The proportions in the individual segments remained
almost constant in 2015 compared with the previous year.
All of the afore-mentioned areas are above the city-wide
median asking rent of €7.03, while prices in the following
districts are lower.
The first district with a below-median asking rent for Kiel
is a very small submarket on the outskirts. Elmschenhagen [03], to the southeast, has a median asking rent of
€6.82 and is characterised by numerous housing estates
as well as the Krooger Kamp high-rise area. This is followed by the area comprising Schilksee, Holtenau, and
Friedrichsort, which extends along a stretch of more than
five kilometres along the outer Kieler Förde. While the
setting is primarily leafy, it is remote from the city centre and the predominant post-war development does not
meet contemporary demands for urban living and infrastructure. Furthermore, certain parts along the Förde are
heavily built-up while Kiel Airport is in the centre of the
area. The median asking rent here stands at €6.64 per
square metre.
Kiel
Schleswig-Holstein
Germany
7.03
6.72
6.51
57.0
65.0
68.0
1.7
2.7
3.0
1.0
3.5
2.7
0.5
1.3
1.3
2)
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Asking Rents in kiel 2015
City area
Number of
rental offers
Apartment size,
average in m2
[01] Altstadt, Vorstadt, Exerzierplatz, Damperhof
389
59.0
7.73
[02] Ellerbek, Wellingdorf, Neumühlen-Dietrichsdorf
396
52.0
6.08
[03]
Elmschenhagen
145
57.0
6.82
[04]
Gaarden-Ost
606
53.6
5.95
92
72.1
7.06
[05] Meimersdorf, Moorsee, Rönne, Wellsee
[06] Mettenhof, Hasseldieksdamm
214
69.9
5.82
[07] Ravensberg, Brunswik, Düsternbrook, Blücherplatz
743
60.0
8.00
[08] Russee, Hassee, Gaarden-Süd
443
60.0
7.14
[09] Schilksee, Holtenau, Friedrichsort
392
59.8
6.64
[10] Schreventeich, Südfriedhof
992
50.0
7.50
[11]
Suchsdorf
[12]
Wik
Kiel average
LOWEST RENTS IN GAARDEN-ost AND METTENHOF
The next area in the rankings is located on the eastern side
of the Förde across from the city centre. Ellerbek, Wellingdorf, and Neumühlen-Dietrichsdorf [02] are primarily residential areas built partially pre-war but predominantly post-war and are separated from the water by a port
and industrial zone. The median asking rent of €6.08 per
square metre is spread along a relatively wide band, with
housing in idyllic locations at the upper end, and locations
close to businesses and major roads at the more affordable end. Suchsdorf [11] to the far northwest is the smallest
submarket in Kiel with fewer than 100 listings at an average of €6.05 per square metre, mainly in buildings constructed in the post-war period up to the 1980s.
78
66.5
6.05
377
64.0
7.33
4,867
57.0
7.03
Gaarden-Ost [04] is a densely developed and vibrant area
located close to the city centre. It suffers from high unemployment, social problems and some rather unattractive post-war buildings. The latter affects the area’s image throughout the city, pushing the median asking rent to
€5.95 per square metre. Prices in the most affordable area
of Kiel comprising Mettenhof and Hasseldieksdamm [06]
are a further €0.13 lower. Hasseldieksdamm is an inconspicuous green suburban area while Mettenhof is the largest satellite town of Kiel, built around 1970 in the far west
of the city. Social-housing has been concentrated into
high-rise buildings.
STRONG MARKET ACTIVITY AND A GROWING GAP
The state capital Kiel has overcome structural change and, accordingly, has witnessed positive trends in economic
and population growth in recent times. Nevertheless, the city is among the weaker of the 29 cities in terms of
demographic projections. The demand for higher-quality accommodation in attractive locations has increased
significantly in Kiel, and is likely to remain high. The main beneficiaries are well-kept locations in the vicinity of
the city centre. The gap between the sought-after western and modest eastern side of the Kieler Förde is set to
increase further. The districts with the lowest asking rents are inhabited by social groups suffering the effects of
the disappearance of traditional industry, which have hitherto largely been excluded from the benefits of the upturn in the services industries.
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09
Kiel Fjord
12
11
07
01
06
02
10
04
08
03
05
5.82 – 5.98
5.99 – 6.07
6.08 – 6.66
6.67 – 6.94
6.95 – 7.13
133
7.14 – 7.37
7.38 – 7.64
7.65 – 8.00
CITY PROFILE
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L E I PZ I G
Leipzig: A traditional city of commerce
and culture popular with investors
The most populous city in Saxony has attracted large companies in the logistics and automotive
sectors since the year 2000. The population and economy are growing at above-average rates,
resulting in positive trends in the Leipzig residential market.
Leipzig celebrated a special year in 2015. The city was first
documented exactly 1,000 years ago. The anniversary of
this event was marked by a series of events and festivals
throughout 2015. After receiving its official city charter
in 1165 and being elevated to the status of trade fair city
of the empire in 1497, Leipzig developed into a European
trade fair city and is now a traditional location for trade
fairs. Besides this role, the city also has a long history as a
city of culture. The city’s great musical tradition is primarily attributable to the works of Johann Sebastian Bach and
Felix Mendelssohn Bartholdy as well as the significance of
the Gewandhaus Orchestra and St Thomas’ Boys Choir. In
literature, Goethe gave the city a literary memorial with the
scene Auerbach’s Cellar in his work ‘Faust’. The city is also
one of the historic centres of letterpress printing and book
selling and was the main hub and transshipment point of
the German book industry during the 19th century.
SUCCESSFUL INVESTMENT STRATEGY
The Leipzig University can look back on a long tradition
dating back to 1409. The university currently has around
28,000 registered students. Almost 9,500 additional students attend six other universities in the city. The growth
in student numbers, which have almost tripled within
10 years, is highly positive. Leipzig is among the most attractive university cities in the eastern German federal
states. This positive trend is also reflected in overall demographic growth. Between the end of 2011 and the end of
2014 alone, the population rose by 6.8 per cent to become
the largest of any urban municipality (kreisfreie Stadt) in
Germany. This is attributable to positive net migration,
which has totalled more than 9,000 persons per year since
2011. In addition, the city’s birth rate exceeded its death
rate for the first time in many years in 2014 by 400 people.
In terms of purchasing power per capita, Leipzig ranks third
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Leipzig, in the federal state of Saxony, is a major freight hub in Germany and
has enjoyed rapid growth in recent years. Freight and mail volumes rose 30-fold
between 2006 and 2014.
from the bottom among the 29 cities researched. However,
both economic growth and population growth are showing
strong uptrends. The unemployment rate in 2014 stood at
10.2 per cent, representing a decrease of more than 10 percentage points compared with 2005. The number of employees subject to social security contributions increased
by 28.2 per cent from 2004 to 2014; the highest growth
among all cities studied ahead of Berlin (24.6 per cent).
The Financial Times even identified Leipzig as a top investment location due to its rate of development. Leipzig’s successful inward investment strategy was particularly recognised in comparison with other European cities, having
attracted a number of large companies over the last decade. Since 2008, freight company DHL has used Leipzig/
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Halle Airport as its central European hub. The city has also
attracted major companies in the automotive and component supply industries, now a key sector for the Leipzig
economy, including a new Porsche factory in 2002 and a
BMW plant that opened in 2005.
NO LONGER AN INSIDEr TIP FOR INVESTORS
The positive demographic and economic development in
recent years is also reflected in rising prices in Leipzig’s
residential market. The median asking rent of €5.63 per
square metre in 2015 ranked just 25th out of the 29 cities
analysed in this report, level with neighbouring Halle. However, this represented a 12.6 per cent rise in asking rents
since 2012. Only five of the cities studied (Berlin, Augsburg, Brunswick, Hanover and Munich) posted higher
growth in asking rents. The active market vacancy rate in
apartment buildings in Leipzig of 6.0 per cent (2014) is
above the level of other major eastern German cities, such
as Dresden, Magdeburg, Cottbus, and Rostock. However,
this has fallen appreciably (-10.0 per cent) since 2009.
Historical buildings, buildings of Plattenbau (slab construction) and post-reunification buildings are all affected by
vacancy in the city, which is primarily attributable to high
levels of construction activity in the 1990s and subsequent
excess supply. Vacancies are primarily concentrated in peripheral city districts.
For investors, Leipzig’s residential market is no longer an
inside tip. The city is one of the growth centres in the
eastern German federal states yet still has moderate asking rents and is frequently described as having a balanced
risk-return profile. Investors are now increasingly shifting
their attention to average and basic locations since supply in refurbished historical buildings in central submarkets is already scarce. Indeed the city has a large proportion of historical buildings. Buildings in this age category
account for the majority (52.9 per cent) of the total of
59,522 buildings with residential accommodation according to the last census.
THE CITY CENTRE IS THE MOST EXPENSIVE
Owing to its history, Leipzig remains a tenants’ city. Only
11.1 per cent of housing is owner-occupied according to
the most recent census. Apartments in apartment buildings are the predominant category of housing. While
there was a significant increase in construction of owneroccupier homes in Leipzig following German reunification, apartments in apartment buildings still represent
the vast majority of housing with 90 per cent of the total
stock. For both of these reasons, the rental apartment
market plays an important role in the city. However, the
supply of rental apartments in Leipzig is vast with only
Berlin having more apartments on the market. As per the
investment market, the rental apartment market is currently witnessing high demand for refurbished historical
buildings in central locations. Highly popular areas include the Waldstraßenviertel in the City Centre Northwest area, Südvorstadt, and the Musikviertel in the City
Centre Southwest area. In line with their high proportion of historical buildings, the central districts also show
the highest median asking rents in Leipzig. Landlords
quoted the highest rent of €7.46 in the City, City Cen-
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DISTRIBUTION OF ASKING RENTS IN LEIPZIG 2014 AND 2015
2014
4.7
2.3
28.6
20.9
35.6
35.1
17.7
21.4
7.2
10.3
2015
6.2
9.9
40%
30%
20%
10%
0%
under €4.00
€4.00 to €4.99
€5.00 to €5.99
€6.00 to €6.99
€7.00 to €7.99
€8.00 and over
Rents in Leipzig remain inexpensive. Some 58 per cent of listings were below the
€6.00 per square metre mark in 2015. However, there is clear growth in asking rents
as 69 per cent of listings in 2014 were lower than €6.00.
tre South, and City Centre West [18] submarkets. This
area was also the first to break the €7-mark in 2014. The
City Centre East and Southeast areas including Südvorstadt [17], as well as City Centre North and Northwest [16] were somewhat less expensive at €7.40 and
€7.00 per square metre respectively. However, all three
central areas have posted double-digit rental increases
in the last three years. Significantly lower asking rents
are found in the areas dominated by Plattenbau buildings.
This industrial mass construction method is prevalent in
the areas of Neu-Paunsdorf [06], Grünau North, Central
Grünau, Grünau East, Grünau-Siedlung, Schönau, Lausen,
and Miltitz [05], where landlords asked an average of
just €4.60 per square metre in 2015. However, even in
the area to the east of the main railway station comprising Neustadt, Neuschönefeld, and Volkmarsdorf [12], the
median asking rent stood at a very moderate €5.00 per
square metre. This area is characterised by heterogene-
Leipzig
Saxony
Germany
5.63
5.39
6.51
62.0
60.2
68.0
6.0
6.5
3.0
1.4
1.5
2.7
0.9
0.6
1.3
2)
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Asking Rents in Leipzig 2015
City area
Number of
rental offers
Apartment size,
average in m2
[01] Anger-Crottendorf, Stünz, Sellerhausen, Heiterblick,
Alt-Paunsdorf, Schönefeld
3,031
60.4
5.11
[02] Connewitz South, Marienbrunn, Lößnig, Dölitz, Dösen
1,164
60.0
5.90
[03] Gohlis-Nord and -Süd, Eutritzsch
3,400
62.8
5.97
430
59.0
5.44
1,931
63.4
4.60
314
60.7
4.60
[07] Leutzsch, Neulindenau, Böhlitz-Ehrenberg, Burgh., Rückmarsdorf
1,386
60.0
5.50
[08] Lindenau, Altlindenau
1,773
61.0
5.64
[09] Lindenthal, Wiederitzsch, Möckern, Wahren, Lützschena-Stahmeln
1,643
58.4
5.41
[10] Mockau-Nord and -Süd, Plaußig-Portitz, Thekla, Seehausen
902
58.7
5.23
[11] Mölkau, Zweinaundorf, Baalsdorf, Engelsdorf, Sommerfeld,
Althen, Kleinpösna
416
56.6
5.50
[04] Großzschocher, Knautkleeberg, Knauthain, Hartmannsdorf,
Knautnaundorf
[05] Grünau-Nord, -Mitte, -Ost, -Siedlung, Schönau, Lausen, Miltitz
[06]
Neu-Paunsdorf
[12] Neustadt, Neuschönefeld, Volkmarsdorf
1,694
63.9
5.00
[13] Plagwitz, Kleinzschocher, Schleußig
1,888
61.0
5.98
[14] Reudnitz, Thonberg
1,191
64.1
5.67
[15] Stötteritz, Probstheida, Meusdorf, Holzhausen, Liebertwolkwitz
1,750
61.0
5.69
[16] City Centre North and Northwest
1,161
78.7
7.00
[17] City Centre East and Southeast, Südvorstadt
2,487
64.7
7.40
[18] City Centre, City Centre South and West
1,393
73.0
7.46
27,954
62.0
5.63
Leipzig average
ous development. There are historical buildings, often
refurbished but partially substandard and still with stove
heating, for example. There is also terraced housing from
the 1960s as well as four to five-storey buildings of Plat-
tenbau, which are partially or completely unrefurbished.
The district does not have a clear image. However, perceptions have improved in recent years owing to the
Rabet redevelopment area.
LEIPZIG ATTRACTS COMPANIES AHEAD OF OTHER CITIES
With its population of 544,479, the largest city in Saxony has a long history as a city of both commerce and culture.
Renowned musicians and writers have worked in Leipzig, while the book industry and university can look back on
a long history in the city. In recent years, Leipzig has successfully completed a trend reversal both in population
terms and economic growth. A key factor in this has been Leipzig’s ability to successfully attract major companies
to the city even ahead of international competition. Asking rents remain at moderate levels in the city. However,
there is a clearly identifiable positive trend in the residential market, making the city attractive to investors. The
first supply shortages are already starting to appear in attractive areas.
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09
10
03
01
07
16
08
06
12
18
11
14
17
13
05
02
15
04
4.60 – 5.01
5.02 – 5.28
5.29 – 5.46
5.47 – 5.57
5.58 – 5.68
139
5.69 – 5.95
5.96 – 6.87
6.88 – 7.46
CITY PROFILE
n
LÜ B EC K
Lübeck: Trend reversal after a long period
of contraction
For more than 40 years, Lübeck’s population was in decline. Now it is rising again thanks to the
positive economic situation. This has also revived the housing market, although willingness to pay
is limited even in the prime segment.
After Kiel, Lübeck is the second-largest city in the federal
state of Schleswig-Holstein and is presently regarded as a
service and tourism centre in the western Baltic area. The
city is known for its medieval Old Town, which has been
a UNESCO World Heritage Site since 1987. More than a
quarter of all buildings in Lübeck city centre are listed as
historic monuments. The ferry port in Travemünde, which
operates numerous ferry routes throughout the Baltic region, and Lübeck marzipan are also well-known nationally.
Shipbuilding and heavy industry have long played an important role in the structure of Lübeck’s economy. In recent times, industry in the city has experienced an upturn.
Key sectors today include food, healthcare, and logistics
as well as specialised mechanical engineering. The port
of Lübeck continues to be of high importance for the city,
as the largest German Baltic Sea harbour. Employment
trends have been positive in Lübeck during recent years.
From 2004 to 2014, the number of employees subject to
social security contributions grew by 15.9 per cent, which
was slightly ahead of the German average of 14.7 per cent.
The unemployment rate fell to 10.1 per cent (2014), although this remains significantly above the nationwide
average of 6.7 per cent in Germany. Overall, however, the
previous long-standing trend of population decline has
been reversed. From the end of 2011 until the end of 2014,
the population grew by 1.8 per cent. This increase is exclusively attributable to net migration, with natural population growth in the city remaining negative. The 18 to under
30 age group is particularly well represented among those
relocating to the city. Persons aged 60 and above account
for 29.0 per cent of the city’s inhabitants, which is higher
than both the German average (27.4 per cent) and the
corresponding figures across all cities in the former West
German states in this report.
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In the peak season, more than 30 tonnes of marzipan are produced each day in
the Hanseatic City of Lübeck. By way of comparison, this is equal to the weight
of around 30 small cars.
SHORTAGE IN BASIC LOCATIONS
The positive trend in the economic situation and the population has also had an impact on Lübeck’s rental apartment
market. The median asking rent per square metre rose by
1.8 per cent in 2015 while the vacancy rate fell from 1.9 per
cent to 1.4 per cent between 2009 and 2014. However, in
a city of relatively modest purchasing power, prospec-
tive tenants have rapidly reached their limit in terms of
ability or willingness to pay, particularly in the markets of
Lübeck with average rental levels, meaning that rents have
changed minimally year on year.
In contrast, the prime and basic locations have seen a
sustained rise. This indicates a shortage of living space of
basic quality, an area of the market in which privately-fi-
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nanced new-build cannot create any additional supply in
the city owing to the costs involved.
Lübeck’s most expensive submarket has legally belonged
to the city since 1913, but is geographically and literally
outside. Travemünde [07] is a seaside and port location
with its own character and is popular with both permanent
residents and guests. As with many locations of this type,
the housing market in Travemünde is also strongly characterised by tourism. There are numerous temporarily used,
owner-occupied and other holiday apartments, for which
far higher rental income can be generated over the year
than for normal rental apartments. The area shows a median asking rent of €8.30 per square metre, which is 3.7 per
cent higher than in 2014. However, the number of apartments on the market was somewhat low at just 120 during
the period under consideration.
LARGE APARTMENTS IN THE OLD TOWN
The City Centre of Lübeck [01] is comprised of the Altstadtinsel (Old Town Island), which is surrounded by the
River Trave and its canal. Lübeck’s retailers, service providers and cultural facilities are concentrated in this area.
The Old Town is the historic and ideal centre of the proud
Hanseatic City, which is further enhanced by its status as
a UNESCO World Heritage Site. The supply of housing is
very heterogeneous. There are very old, small houses here
with a historical flair, but often only in modest sizes and
not always to a contemporary standard. However, there are
also stylish apartments with a view of the water or across
the city’s landscape of towers and roofs. Even with middleclass tenants, who often preferred villas in the suburbs in
previous years, the Altstadt is once again in vogue as a
residential area. There are ambitious development projects,
such as the Gründungsviertel district near the Marienkirche, where an area destroyed during the war is to be res-
urrected with contemporary housing built on the historic
plots. The median asking rent in the city centre is exactly
€8.00 per square metre and rose by 3.1 per cent in 2015 but
remains slightly below the 2012 figure (€8.02). In the Altstadt, old buildings are also offered to let, which are tiny in
comparison to the owner-occupied homes in the suburbs
yet larger than many newer rental apartments.
EXTENSIVE AREAS OF APARTMENT BLOCKS with
mostly AVERAGE RENTS
The area comprising St. Jürgen East and Strecknitz [04] in
the southeast of Lübeck is ranked third in the city with a
median asking rent of €7.42 per square metre. The rental
market is characterised by expansive residential districts
from the pre-war and post-war periods, which are generously landscaped in some areas. The economical layouts,
which were the standard at that time, produce the lowest
available average size in the city of 55 square metres. Local
demand is buoyed by the university hospital and the university of applied sciences in the area. The Altstadt is not
immediately adjacent to the area but is within easy reach.
Next in the rankings is the expansive and heterogeneous
area comprising the districts of St. Gertrud and Schlutup [03], which border the city centre to the east and
north. St. Gertrud is an area characterised by the Wilhelminian period in the northwest, while the east is characterised more by post-war construction and is directly
opposite to the Altstadt. Marli, to the east of the centre
and part of St. Gertrud, has expansive areas of high-rise
buildings from the interwar and post-war periods. In Eichholz and in Schlutup, some way from the city centre, there
is a mixture of apartment blocks and areas of owner-occupied property. The median asking rent in the entire area is
€6.83 per square metre, which is precisely the same level
as the previous year.
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DISTRIBUTION OF ASKING RENTS IN LÜBECK 2014 AND 2015
2014
4.0
2.6
36.0
34.3
35.9
35.4
17.0
18.2
4.9
7.3
2015
2.2
2.2
40%
30%
20%
10%
0%
under €5.00
€5.00 to €6.49
€6.50 to €7.99
€8.00 to €9.49
€9.50 to €10.99
€11.00 and over
The majority of asking rents (almost 70 per cent) are between €5.00 and €7.99 per
square metre. The local high-priced segment is somewhat small, with only 9.5 per
cent of asking rents exceeding the €9.50 mark.
The St. Lorenz North and South submarket, as well as
Buntekuh [06], accommodate a very large area and
have the largest supply, in terms of quantity. The median asking rent of €6.80 per square metre is €0.14 below the equivalent value for the entire city and growth in
2015 was slightly lower than the overall figure. St. Lorenz extends to the west of the Old Town and comprises
a variety of areas from the industrial properties near the
water and the Lübeck railway station district to stretches
of apartment blocks from all periods and areas of owneroccupied property. Buntekuh, a product of the classic city
expansion of the 1960s and 1970s, witnessed vacancy
rates of up to 20 per cent after the year 2000. In 2006,
the area was included in the Federal State “Soziale Stadt”
(Social City) programme.
Lübeck
Schleswig-Holstein
Germany
6.94
6.72
6.51
59.0
65.0
68.0
1.4
2.7
3.0
2.0
3.5
2.7
0.8
1.3
1.3
2)
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LÜ B EC K
Asking Rents in lübeck 2015
City area
Number of
rental offers
Apartment size,
average in m2
[01] City Centre
369
60.0
8.00
[02]
Kücknitz
157
59.0
5.93
[03] St. Gertrud, Schlutup
648
56.0
6.83
[04] St. Jürgen East, Strecknitz
286
55.0
7.42
[05] St. Jürgen West, Moisling
254
62.2
6.40
[06] St. Lorenz North and South, Buntekuh
857
60.0
6.80
[07]
Travemünde
116
60.0
8.30
2,687
59.0
6.94
Lübeck average
LOW-PRICED MARKETS IN EXTENSIVE POST-WAR
DISTRICTS
The southwest of Lübeck, comprised of the predominantly
commercial St. Jürgen West and Moisling [05], situated far from the city centre, follow in the rental rankings
at €6.40. In the mid-1960s, the latter developed rapidly
from a marginalised, more village-like area into a residential area on the outskirts of the city, with many terraced
houses and high-rises. Like Buntekuh, it fell into crisis
from the 1990s onwards, with rising vacancy rates. However, efforts are also being made here to promote structural improvement: The district is to receive a centre that
has been missing until now, as well as a stop on the railway route to Hamburg. Numerous apartment blocks are
being modernised and some are even being rebuilt. This
is also intended to improve the partially difficult social
structure. Landlords are already more optimistic. The median asking rent rose by 4.3 per cent in 2015, the secondhighest relative increase in the city.
The highest percentage increase of 6.3 per cent was
found in the diminutive rental market in Kücknitz [02].
The district lies somewhat isolated between Lübeck and
Travemünde and was a stronghold of terraced housing,
which was popular during the post-war period. Today,
this is no longer the most popular form of housing, which,
along with the location of the district in relation to Lübeck,
contributes to the city’s lowest median asking rent of
€5.93 per square metre despite the recent increase.
OPPORTUNITIES FOR THOSE WITH GOOD KNOWLEDGE of the market
After some difficult decades, Lübeck’s landlords are once again optimistic – although some to a greater degree
than local affluence permits. Prime rents are, therefore, significantly limited at present. Investors must pay attention to location and quality of living if they are to market their product successfully, while the age structure in
Lübeck could bring apartments suitable for senior citizens into the spotlight. In the lower-priced segments, there
are indications of a supply shortage, which offers potential to investors. However, the majority of the buildings
from the pre-war and post-war periods are in need of restoration, meaning that modernisation costs must be
added to the purchase price in most cases. Lübeck generally remains a location that requires precise knowledge
of the micro-locations and tenant preferences.
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CITY PROFILE
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Bay of
Lübeck
07
02
03
06
01
04
05
5.93 – 6.28
6.29 – 6.60
6.61 – 6.81
6.82 – 6.83
6.84 – 7.27
145
7.28 – 7.71
7.72 – 8.07
8.08 – 8.30
CITY PROFILE
n
M AG D E B U R G
Magdeburg: Recovery following a long crisis
Magdeburg has had to contend with a population decline of more than 20 per cent but has since
managed to reverse the trend and is now expanding again. Demand is high for residential property
in the centre. However, asking rents are also rising in less popular peripheral locations.
Following German reunification, Magdeburg initially suffered a dramatic contraction. Between 1990 and 2002,
the city lost around 50,000 of its inhabitants – more than
20 per cent of the city’s population. However, the city’s
core industrial sector (mechanical engineering) has since
overcome the adjustment crisis and started to expand
again, not least through the production of wind power installations. The logistics sector is also growing in a city
that is well connected by road, rail, and waterways. Sunrise industries such as environmental technology and recycling management, the processing of renewable raw
materials, and the healthcare sector are also well represented. A quite new sector to the city is national electronics services, including T-Systems’ largest data centre in
Germany and an IBM service centre. Magdeburg’s strong
regional position is reinforced by its status as the state
capital of Saxony-Anhalt, a university city and a centre of
commerce and services. All of this is reflected in the city’s
population growth.
The years of contraction have given way to moderate
growth. From the end of 2011 until the end of 2014, the
population rose by 1.5 per cent. Owing to the high proportion of senior citizens and the large population losses in
previous years, projections for the population and number of households through to 2030 are rather negative.
Indeed, only Chemnitz and Halle have worse projections
across the 29 cities studied. However, the current trend is
contradicting these forecasts.
RESIDENTIAL PROPERTY IN DEMAND CITYWIDE
Magdeburg’s residential market also contracted after
1990, although it did not become quite as unbalanced as
other eastern German cities. This was partly attributable
to rigorous demolition programmes. Demand has since
been revitalised and the vacancy rate has fallen from
7.7 per cent in 2009 to 5.5 per cent in 2014. While the
median asking rent of €5.45 per square metre in 2015 is
still at a low level compared with other major cities, this
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CITY PROFILE
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M AG D E B U R G
Contrary to the trend in the federal state, net migration in Magdeburg has
been consistently positive for years. Since 2007, the city has gained almost
11,000 inhabitants via net migration.
figure reflects an increase of 2.8 per cent compared with
the previous year. With the exception of the area comprising Rothensee and Neustädter See [07], all individual
districts of the city witnessed an increase in asking rents
to a greater or lesser degree.
The Altstadt district led the city’s asking rent ranking with
a median figure of €5.80 per square metre along with
Buckau [02], the adjacent district to the south. The north
of the Altstadt has little historic building stock as a result
of the Second World War and is, instead characterised by
large-scale development from the former East Germany.
The southern part of the district still features much architecture from the Wilhelminian era, while the area around
Hasselbachplatz with its many renovated ornate facades
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is one of the most popular areas in the city. The area is
characterised by the nightlife district near Hasselbachplatz with its numerous bars and restaurants as well as
the River Elbe, which flows to the east of the Altstadt. The
often very narrow backyards detract only slightly from the
area’s reputation. The adjoining Buckau area to the south
is also close to the river but is somewhat greener and less
densely developed. There is a close mix of residential and
commercial uses, which is an advantage in terms of short
travel distances but a disadvantage with regard to traffic,
noise and the cityscape.
POPULAR HISTORIC SETTLEMENTS
To the west of the Altstadt area, but separated from it
by the main railway lines and federal road 71, is Stadtfeld, which is adjoined by Diesdorf [08] towards the city
boundary. The area recorded the second highest rental
level in Magdeburg of €5.70 per square metre. StadtfeldEast still features many houses from the Wilhelminian era,
many of which have been extensively modernised over the
last 25 years. Another large proportion of development
dates back to the period following the First World War,
such as the early modern Hermann-Beims-Siedlung with
2,000 homes as well as the traditionally arranged owneroccupier area of Lindenweiler. Numerous four to five-storey apartment blocks were constructed here in former
GDR times. Even modest apartments were sought after in
2015. The least expensive decile of median asking rents
stood at exactly €5.00; the highest figure among all of the
lowest deciles in the city.
The third most expensive area in terms of median asking
rents is the extensive eastern part of the city [04] on the
right bank of the Elbe, which benefits from a low development density. The area comprises a variety of smaller localities, such as Brückfeld, Cracau, and Prester. The largest district, Cracau, is particularly popular owing to its
proximity to both the city centre and the open landscapes
along the Elbe. The residential area of the same name dating from around 1930 and providing some 2,000 homes
projects an almost unaltered Bauhaus-period atmosphere.
Brückfeld is of mixed development that primarily dates
back to imperial times and the former East Germany. The
Angersiedlung area, developed over 38 years from 1900,
is particularly attractive and features all of the prevailing
architectural styles from this prolonged period. The median asking rent in eastern Magdeburg in 2015 stood at
€5.60 per square metre. The equivalent figure in the small
suburban submarket comprising Ottersleben and Sudenburg Southwest [05] was just €0.12 lower.
OLD BUILDINGS IN NEUE NEUSTADT
In all other areas of Magdeburg, median asking rents were
below the level for the city as a whole of €5.45 per square
metre. Just five cents below this level at €5.40 were the
Alte Neustadt and Neue Neustadt [01] areas north of
Magdeburg city centre. The Alte Neustadt area, closer to
the city centre, was largely destroyed during the Second
World War and rapidly rebuilt with terraced properties,
predominantly around the expansive Nordpark. The green,
attractive location is popular today, although some housing does not meet current requirements in terms of size
and floor plans. The Neue Neustadt district is divided by
the old railway line to Berlin. Some areas are purely residential with rows of houses and green spaces, while others feature a close mix of residential and commercial uses.
148
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DISTRIBUTION OF ASKING RENTS IN MAGDEBURG 2014 AND 2015
2014
1.3
0.7
24.2
20.8
52.1
52.5
16.3
18.4
4.4
5.0
2015
1.7
2.5
60%
50%
40%
30%
20%
10%
0%
under €4.00
€4.00 to €4.99
€5.00 to €5.99
€6.00 to €6.99
€7.00 to €7.99
€8.00 and over
Despite the rental growth, Magdeburg remained an inexpensive market for tenants
in 2015. Almost three quarters of asking rents were below €6.00 per square metre
while only 2.5 per cent stood at €8.00 or above.
The area comprising Reform, Hopfengarten, Beyendorfer
Grund and Lemsdorf [06] in the south of the city has a median asking rent of €5.25. Adjoining this area to the south
is Neu-Reform, an area characterised by Plattenbau (slab
construction) dating back to the former East Germany and
which does not appear successful either aesthetically or
socially. Some blocks were recently demolished. Close to
both areas is Hopfengarten, a spacious area characterised
by single-family houses and low population density.
TWO IN THREE INHABITANTS LEFT THE AREA
The area comprising Sudenburg and Leipziger Straße [09]
is situated to the southwest of the city centre and retains
much architecture from the Wilhelminian era, closely adjoined by major industrial plants. A second wave of development commenced in 1990, creating the Hansapark and
Goethesiedlung neighbourhoods. The area also remains
home to many industrial companies. The housing supply
is extensive in the area. Consequently, the median ask-
Magdeburg
Saxony-Anhalt
5.45
5.15
6.51
58.6
59.9
68.0
5.5
7.0
3.0
1.6
1.0
2.7
0.6
0.3
1.3
2)
Germany
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Asking Rents in Magdeburg 2015
City area
Number of
rental offers
Apartment size,
average in m2
[01] Alte and Neue Neustadt
640
57.1
5.40
[02] Altstadt, Buckau
634
62.9
5.80
[03] Olvenstedt, Kannenstieg, Neustädter Feld, Northwest
503
56.7
4.80
[04]
East
544
58.0
5.60
[05] Ottersleben, Sudenburg Southwest
162
55.0
5.48
[06] Reform, Hopfengarten, Beyendorfer Grund, Lemsdorf
292
50.6
5.25
[07] Rothensee, Neustädter See
193
49.5
5.14
[08] Stadtfeld East and West, Diesdorf
1,096
60.3
5.70
[09] Sudenburg, Leipziger Straße
945
62.0
5.20
[10] Westerhüsen, Salbke, Fermersleben, Beyendorf-Sohlen
261
57.0
5.02
5,270
58.6
5.45
Magdeburg average
ing rent remained a modest €5.20 per square metre in
2015 despite growth of 1.6 per cent. The area comprising
Rothensee and Neustädter See is situated in the far north
of the city and is developed around a rural core. Two residential areas emerged here during the interwar period and
a number of slab constructions were added around Neu
städter Platz in the former GDR era. The median asking
rent is a moderate €5.14 per square metre. This was also
the only part of Magdeburg where the median asking rent
declined in 2015, falling by 1.2 per cent.
larly along the heavily congested Alt-Salbke road, and the
overall median asking rent in the area is a rather modest
€5.02 per square metre.
Adrift at the bottom of the rankings are the areas of Olvenstedt, Kannenstieg, Neustädter Feld, and Northwest [03],
where the median asking rent stood at just €4.80 per
square metre. Neu Olvenstedt was and remains the area of
city that features the most slab construction. The population declined from approximately 30,000 in 1989 to some
10,000 in 2014, leaving 30 per cent of housing vacant at
times. Around 3,000 units have since been demolished
and others converted into terraces.
Westerhüsen, Salbke, and Fermersleben are former fishing
villages that have grown together along the Elbe. Together,
along with another peripheral area Beyendorf-Sohlen, they
form a single postcode area [10]. Due to the area’s isolated location, the housing vacancy rate is high, particu-
GROWING DIVIDE BETWEEN CENTRE AND OUTSKIRTS
Magdeburg’s residential market may have recovered but the city is not a place of unbridled euphoria. The negative experiences of the last 20 years do not allow this and, despite improved data, hopes for the future are still
insufficiently positive. The industrial economy could weaken and the ageing population could become a growing
problem. Consequently, the trend in Magdeburg is not towards excessive new-build but towards well-considered
improvement of the existing stock. Investment is normally more worthwhile the closer the property to the city
centre. The rental divide between central and peripheral locations is likely to increase going forward.
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07
03
01
08
02
04
09
05
06
10
4.80 – 5.04
5.05 – 5.16
5.17 – 5.22
5.23 – 5.33
5.34 – 5.45
151
5.46 – 5.57
5.58 – 5.69
5.70 – 5.80
CITY PROFILE
n
MAINZ
Mainz: Magnetic media city
The state capital of Rhineland-Palatinate is an attractive destination for young adults in particular.
The popular university city enjoys high net migration. In the housing market, demand has been
exceeding supply for many years, with the consequence that rents are rising.
Throughout its 2,000-year history, the city of Mainz, with
its 206,991 inhabitants (end of 2014), has always benefited from its favourable location at the confluence of the
Rhine and Main rivers. The Romans built their “Mogontiacum” legion camp here, the origin of urban Mainz. Frederick II called together the major holders of power in the
empire to the Reichstag in Mainz in 1235 and, as a member of the Rhenish League of Cities, the city developed
into an important business location in the 13th century.
The invention of book printing and the printing press by
Johannes Gutenberg around 1450 revolutionised the development of media, as well as the educational landscape.
The city is also well known as the home of the “Mainzelmännchen” characters from German television channel
Zweites Deutsches Fernsehen, which, along with additional broadcasters such as Süddeutscher Rundfunk, 3sat
and several publishing companies, define Mainz as a media location. The former districts of Mainz-Amöneburg,
Mainz-Kastel, and Mainz-Kostheim (“AKK”) on the right
bank of the Rhine, as well as Mainz-Bischofsheim, MainzGinsheim, and Mainz-Gustavsburg, are a special political
situation. After the Second World War, the Rhine passing
through Mainz constituted the border between the French
and American occupation zones. The districts on the right
bank of the Rhine, to the north of the mouth of the Main –
Amöneburg, Kastel, and Kostheim – were handed over to
the City of Wiesbaden to be held in trust, which is still a
reason for animosity between the cities to this day. The
districts on the right bank of the Rhine to the south of the
Main – Bischofsheim, Ginsheim, and Gustavsburg – became independent local authorities in the administrative
district of Groß-Gerau. The new formation of the federal states of Hesse and Rhineland-Palatinate cemented
this partition. On the basis of the transfer of the territory
to Wiesbaden, which was never fully legally concluded,
the AKK districts still bear the prefix “Mainz” in their official names and many inhabitants feel that they belong
to Mainz. In 2013, Mainz completed a mammoth urban
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MAINZ
The media sector employees around 16,000 full-time personnel in the city of Mainz.
In other words, one out of six people with permanent employment contracts in
Mainz works in the media.
planning task that lasted over four decades. This was the
restoration of the 230,000 square metre old town south
of the cathedral. While a new, contemporary city centre
with department stores was created in the northern part
of the historic Altstadt, due to its virtually complete destruction during the war, nearly all of the buildings in the
southern part remained unscathed. At the beginning of
the 1980s, Mainz’s Altstadt was a dilapidated district in
need of reconstruction with catastrophic living conditions,
including partially collapsed buildings with musty, dark
courtyards, and tiny apartments with communal toilets in
the stairwell. Some 47 per cent of the buildings were ripe
for demolition and the traffic situation was chaotic. Today,
the district gleams with attractive pedestrianised zones
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MAINZ
with high recreational value and a high-quality living environment. Numerous monuments have been preserved,
while other buildings were reconstructed.
NET MIGRATION DRIVING THE HOUSING MARKET
STRONG BUSINESS AND SCIENCE SECTORS
The City of Mainz is one of the top five urban centres in
the state of Rhineland-Palatinate and, together with the
Hessian state capital of Wiesbaden, forms a cross-state
dual centre with around 480,000 inhabitants. Thanks to
its central location in the Rhine-Main region, proximity to
Frankfurt am Main International Airport and good connections to the motorway, Mainz is in high demand as a
business location. However, the flight traffic also causes
increased noise pollution in several locations. Mainz is
strongly represented in the information and communications technology, cultural and creative industries, and
healthcare sector clusters. The companies with the highest number of employees include the Johannes Gutenberg University with its hospitals, the Mainz local authority,
ZDF, Schott, SWR, and publisher Verlagsgruppe RheinMain. In addition to the three universities with a total of
40,000 students, there are also other institutions of higher
education in Mainz. The “Wissenschaftsallianz Mainz”,
with nearly 4,000 scientists, ensures the continuous transfer of knowledge and technology in business and society.
The population of Mainz grew by 3.0 per cent from the
end of 2011 until the end of 2014. The BBSR (Federal Institute for Research on Building, Urban Affairs and Spatial
Development) predicts that the population will stagnate
on average between 2012 and 2030 and that the number of households will increase by 5.1 per cent. Rents in
the city centre, which have been rising for years, indicate
surplus demand. To relieve the strained housing market, the City has designated 20 large sites for the development of a potential 6,500 apartments, which could be
completed by 2020. The large development zones include
the Heiligkreuz site (1,950 apartments), the customs and
inland port (1,400 apartments), the Quartiersplatz Neustadt site (up to 500 apartments), the GFZ barracks (up
to 500 apartments) and the Martin-Luther-King-Park (up
to 350 apartments). To implement the plans under the
new “Bündnis für das Wohnen” (Alliance for Living) initiative, the City is entering into collaboration with the housing sector and the federal state. The City imposed a cap
of 15 per cent on rental increases within three years on
existing property in February 2015 as well as introducing the government Mietpreisbremse (capping of rents on
re-letting) in existing property in October 2015. Together
with its citizens, the City is also drafting an “integrated
development concept” intended to create future-oriented
perspectives on urban planning design over the next 10 to
15 years. Median exclusive asking rents – analysed across
the entire city area – rose from €9.47 in 2012 to €10.00 per
square metre in 2015 (+5.6 per cent). The highest rents,
averaging €10.95, are found in Oberstadt [09], a central
area characterised by Wilhelminian-era villas, large parks,
the baroque citadels from the 17th century and the university hospitals. The Altstadt [01] area, one of the most
sought-after parts of the city following its revitalisation,
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DISTRIBUTION OF ASKING RENTS IN MAINZ 2014 AND 2015
2014
1.2
1.1
11.9
9.3
40.6
38.5
33.2
37.0
8.2
10.1
2015
4.8
4.1
50%
40%
30%
20%
10%
0%
under €6.00
€6.00 to €7.99
€8.00 to €9.99
€10.00 to €11.99
€12.00 to €13.99
€14.00 and over
Asking rents in Mainz are at a high level. In 2015, more than half of apartments
were listed for a minimum of €10.00 per square metre. Only 10.4 per cent of listings
were below €8.00.
is close behind with a median asking rent of €10.80. The
Neustadt [08] area, situated to the northwest of the Altstadt, is also somewhat sought after, particularly by students. The median exclusive asking rent here stood at
€10.01 per square metre in 2015. Although the district was
exposed to heavy destruction during the Second World
War, many Wilhelminian-era residential buildings were
preserved. In recent years, there has been careful renovation of numerous locations in Neustadt, without destroy-
ing the urban character, with many squares, quiet streets
in terms of traffic, bars and cafés, small shops and handicraft businesses. Along the bank of the Rhine, there is a
customs and inland harbour, which will be converted into
a new, mixed-use district during the next few years. Asking rents were €10.00 per square metre in the area comprising Gonsenheim and Hartenberg-Münchfeld [06] as
well as Bretzenheim [02]. Mainz-Gonsenheim is virtually
a small city in itself, with an old town centre, grand villas
Mainz
Rhineland Palatinate
Germany
10.00
6.29
6.51
63.0
75.0
68.0
1.2
3.3
3.0
5.0
2.8
2.7
3.8
1.0
1.3
2)
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Asking Rents in mainz 2015
City area
Number of
rental offers
Apartment size,
average in m2
[01]
Altstadt
429
62.0
10.80
[02]
Bretzenheim
224
58.0
10.00
[03] Drais, Lerchenberg, Marienborn
163
64.0
9.33
[04] Ebersheim, Hechtsheim
228
73.0
9.00
[05]
Finthen
186
68.3
9.29
[06] Gonsenheim, Hartenberg-Münchfeld
558
64.0
10.00
[07]
Mombach
191
64.0
9.38
[08]
Neustadt
386
56.0
10.01
[09]
Oberstadt
243
60.0
10.95
[10] Weisenau, Laubenheim
247
67.0
9.76
2,855
63.0
10.00
Mainz average
and modern residential areas, as well as a lively shopping
street, its own carnival tradition and the Lenneberg Forest
as a local recreational area. In addition to being favoured
by families, Hartenberg-Münchfeld, between the city centre and Gonsenheim, is also popular with students due to
its proximity to the university. Bretzenheim also benefits
from its proximity to the universities. In terms of urban development, the district comprises numerous residential
high-rises in the south and a historic core featuring predominantly single-family and terraced housing. The lowest median exclusive asking rent is €9.00 per square metre in the areas of Ebersheim and Hechtsheim [04] in the
south of the city. In village-like Ebersheim, numerous new
residential areas have been created during the past years.
Young families have particularly realised their dream of
a single-family home here. In addition to agriculture and
vineyards, Hechtsheim has developed into the largest
business park area in Mainz since the 1960s, with various
media organisations, research and IT companies.
THE DYNAMIC MEDIA CITY SHOWS A GREAT DEAL OF CREATIVITY AND AWARENESS OF HISTORY
Mainz is the state capital of Rhineland-Palatinate and, with the Hessian state capital of Wiesbaden, forms a crossstate dual centre with around 480,000 inhabitants. Thanks to its central location in the Rhine-Main region, proximity to Frankfurt am Main International Airport and good connections to the motorway, Mainz is in high demand
as a business location. Mainz is strongly represented in the information and communications technology, cultural
and creative industries and healthcare sector clusters. Mainz is a growing city with high net migration, particularly
among young adults. The rising demand in the city centre, which is intensified by competition from retail and office
use, is not satisfied by adequate supply. Young families therefore tend to move out to districts that are further from
the city centre.
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07
08
06
01
05
09
02
03
10
04
9.00 – 9.30
9.31 – 9.34
9.35 – 9.52
9.53 – 9.88
9.89 – 10.00
157
10.01 – 10.02
10.03 – 10.70
10.71 – 10.95
CITY PROFILE
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Mannheim: Making space in the
“square city” with lateral thinking
Mannheim is the cultural and economic centre of the Rhine-Neckar metropolitan region, which has
a population of 2.4 million people. Over the coming years, the city faces the challenge of integrating
some 500 hectares of space requiring conversion both qualitatively and quantitatively.
Whether in business, music or architecture, Mannheim,
with its 299,844 inhabitants, combines the classical with
the modern and tradition with a passion for experimentation. The city was even founded under the motto “new
thinking”. Elector Friedrich IV of the Palatinate commissioned the creation of Mannheim in 1606 in the contemporary image of an ideal city with strong ground plan
geometry. Today, the image of the city centre is still characterised by the grid-like road network and division of
space into quadrants. In 2016, Mannheim is due to receive a local chamber of the unified European Patents
Court owing to the high quality of its patent jurisdiction.
The city is well situated geographically, enjoying a central
location at the confluence of the Rhine and Neckar rivers. Mannheim has a highly developed infrastructure with
connections to the national motorway network, the second largest ICE terminal in Germany, Frankfurt’s inter-
national airport within 30 minutes and the Rhine-Neckar
harbour, one of the largest inland harbours in Germany.
Mannheim in Baden Württemberg is separated from its
sister city, Ludwigshafen in Rhineland-Palatinate, only by
the Rhine. Together with the university city of Heidelberg,
these form the core of the prospering Rhine-Neckar metropolitan region.
The “square city” is one of the most attractive business locations in Germany. Global players such as Daimler, ABB,
John Deere, Roche Diagnostics, Siemens, and Bilfinger are
represented in the city along with medium-sized “hidden
champions” of the calibre of Fuchs Petrolub, Südzucker,
and MVV Energie. The city has a balanced sector mix
comprising vehicle manufacturing and mechanical engineering, electrical engineering, chemicals and pharmaceuticals, and medical technology. The City also intends
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The handover of US military barracks in Mannheim has cleared around 500 hectares used by the American armed forces for conversion. This is roughly equivalent
to the area of 700 football pitches.
to expand its energy, environment, transport, and logistics
clusters. Furthermore, Mannheim is also establishing itself
as the “secret capital city of music” with Germany’s first
business incubator for the music sector and the formation
of Germany’s only state university for popular music and
music business. Overall, state and private universities in
the city have around 26,000 enrolled students.
A CITY HEADING FOR NEW HORIZONS
Mannheim’s residential market is witnessing rising demand. The population rose by 2.9 per cent from the end
of 2011 to the end of 2014 alone. Between 2012 and 2030,
the number of inhabitants is projected to rise by 4.1 per
cent, while the number of households is even expected
to increase by 8.2 per cent. Only Freiburg and Wiesbaden
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have higher projections among the 29 cities studied. In
this respect, it is a challenge that Mannheim has had
a low supply of available land to date and only a modest supply of medium to high-quality housing. In addition to the population growth, therefore, there is also an
increase in the number of commuters. Now, however,
the withdrawal of the US armed forces, which have been
stationed in the city since the end of the Second World
War, will free up some 500 hectares for conversion. Together, this area is five times as large as Mannheim city
centre. The City has laid down its objectives for managing the land in a “conversion white paper”. The process
involved a broad public consultation and took on board
the ideas expressed by inhabitants of the city. A large
number of apartments will be demolished on the sites of
the Benjamin Franklin Village and the Funari and Sullivan
Barracks. At the same time, high-quality new-build areas
as well as retail, sports and school facilities will be developed. The Turley site will be developed with a vibrant mix
of residential and commercial space. The Taylor Campus
is earmarked to receive a mix of commercial and green
space as well as a media park. The hangars at the Spinelli
Barracks will almost completely give way to open spaces,
some of which will be used for the German National Garden Festival in 2023, thus becoming part of the “Grünzug
Nordost”, the largest tract of green space in Mannheim.
The remaining space will be used for residential development to complement the old buildings worthy of preservation. The former airfield, the Coleman Barracks, which
is the largest barracks site, will be largely cleared, creating space for nature and climate improvement and, from
2016, will contribute to improving the northern districts of
Mannheim. Within 10 years, the conversion areas should
provide new housing for 10,000 people. The Hammonds
Barracks in the Seckenheim district will be re-developed
as a residential area by the Institute for Federal Real Estate (BImA). The City intends to use the conversion as an
opportunity to become more diverse, vibrant, urbane, attractive and open. The space will be marketed to a size,
time frame and mix of uses, which is sensitive to the
available demand and in such a manner as to avoid overloading the absorption capacity of the property market.
NEW URBAN QUARTERS FOCUS ON MIXED USES
Another major urban development project is the 33-hectare Glückstein area in the Lindenhof district, which is
emerging in the immediate vicinity of the main railway
station. When complete, the area will provide accommodation for 4,600 jobs and 1,500 inhabitants. In the heart
of Mannheim city centre, in quadrants Q 6 and Q 7, an urban quarter is scheduled for completion by 2016 that will
combine event shopping, high-quality living space, commercial space, and a hotel. The former four-hectare post
office site at Mannheim train station will also be transformed into a cluster of hotels, boarding houses, offices,
and apartments. Meanwhile, Willy-Brandt-Platz and the
southern end of the area will each be developed with a
high-rise block.
LOW DEVELOPMENT ACTIVITY IN THE CITY
The state statistical office estimated that there were
623 residential units completed in Mannheim in 2014
(2013: 259), while planning permission was granted for a
further 602 units (2013: 382). The active market vacancy
rate according to the CBRE-empirica vacancy index stood
at 1.9 per cent in 2014.
The city centre housing stock in the “square city” was almost completely destroyed in the Second World War. The
majority, almost 52 per cent, of the current 41,343 buildings in Mannheim with residential accommodation was
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DISTRIBUTION OF ASKING RENTS IN MANNHEIM 2014 AND 2015
2014
4.3
3.3
34.7
29.3
32.7
35.8
16.8
19.3
6.9
7.3
2015
4.7
5.1
40%
30%
20%
10%
0%
under €6.00
€6.00 to €7.49
€7.50 to €8.99
€9.00 to €10.49
€10.50 to €11.99
€12.00 and over
The majority of asking rents (approximately 65 per cent) range between €6.00 and €8.99 per square metre. All price segments from €7.50 upwards accounted for
a larger proportion of asking rents compared with 2014.
therefore built between 1949 and 1986 according to the
2011 census. Nevertheless, some 32 per cent of this building stock was built prior to 1948. On the other hand, only
around 5 per cent was built after 2000.
MODERATE INCREASE IN ASKING RENTS
The median asking rent in Mannheim stood at €8.10 per
square metre in 2015; €0.22 higher than in the previous
year. Only in two districts did rents remain almost at the
same level year on year. In the most expensive area of
Schwetzingerstadt/Oststadt [09], which features a high
proportion of old villas and Wilhelminian-era houses, the
rental level fell from €8.98 to €8.95 per square metre. In
the area comprising Lindenhof and Neuostheim/Neuhermsheim [04], close to both the city centre and expanses of water, the equivalent figure fell from €8.80 to
€8.78, although prime asking rents in the upper market
segment here start at €11.89 and €12.00 respectively. The
Mannheim
Baden-Württemberg
Germany
8.10
7.82
6.51
66.1
75.0
68.0
1.9
1.8
3.0
2.1
3.1
2.7
1.5
1.6
1.3
2)
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Asking Rents in Mannheim 2015
City area
[01]
Friedrichsfeld
Number of
rental offers
Apartment size,
average in m2
7.00
48
69.1
[02] City Centre/Jungbusch
628
64.1
8.81
[03] Käfertal, Vogelstang
266
68.0
7.44
[04] Lindenhof, Neuostheim/Neuhermsheim
374
72.0
8.78
[05]
Neckerau
338
62.0
8.33
[06] Neckerstadt-Ost and -West
525
60.0
7.86
[07] Rheinau, Seckenheim
389
68.4
7.61
[08] Sandhofen, Schönau, Waldhof, Gartenstadt
304
70.0
7.50
[09] Schwetzingerstadt/City East
395
66.0
8.95
[10] Wallstadt, Feudenheim
223
76.0
7.90
3,490
66.1
8.10
Mannheim average
City Centre/Jungbusch [02] area is also expensive with
a median asking rent of €8.81 per square metre. Following the arrival of the Musikpark and Popakademie BadenWürttemberg as well as the construction of modern student apartments, the Jungbusch district with its harbour
atmosphere and multi-cultural population has developed
into a trendy and sought-after area. The creative business
centre, which opened its doors at the start of 2015, reinforces this trend.
The lowest asking rents were found in the more peripheral
districts such as Friedrichsfeld [01] at €7.00 per square
metre (2014: €6.96), the area comprising Käfertal and
Vogelstang [03] at €7.44 per square metre (2014: €7.35)
and the area comprising Sandhofen, Schönau, Waldhof,
and Gartenstadt [08] at €7.50 per square metre (2014:
€7.19). Development here is predominantly small-scale
and occasionally rural (Sandhofen) or based upon a garden city model, complemented by areas of high-rises
such as those in north west Schönau and northern Waldhof. These areas may change when the new Stadtbahn
Nord light railway connects the districts of NeckarstadtEast, Käfertal, Waldhof, and Gartenstadt with Mann
heim’s city centre from mid-2016.
THINKING OUTSIDE THE BOX TO CREATE URBAN DIVERSITY
The “square city” of Mannheim is one of the most attractive business locations in Germany. Global players are
equally as attracted to the city as medium-sized “hidden champions”. The city at the confluence of the Rhine and
Neckar rivers impresses with its central location in Europe, well-developed infrastructure, cultural diversity, excellent housing and shopping facilities, and a total of more than 34 square kilometres of forests, waterways, and recreational space. The lively collaboration between the city’s universities and numerous research institutions and
local industry guarantees a broad knowledge transfer. Rents are currently rising further owing to positive population growth and low amounts of new build activity. However, the withdrawal of US armed forces has freed up some
500 hectares of space for conversion in the city.
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08
03
06
02
10
09
04
05
07
01
7.00 – 7.44
7.45 – 7.53
7.54 – 7.70
7.71 – 7.88
7.89 – 8.17
163
8.18 – 8.67
8.68 – 8.80
8.81 – 8.95
CITY PROFILE
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MUNICH
Munich: City of arts and science
The Bavarian state capital is a city of the arts, culture and tradition but has also developed into a
hub of transport, leading research, relations and sustainable development. The constant population
growth makes Munich’s housing market the most expensive in Germany.
Munich is a city of superlatives, tolerance, and diversity.
The Bavarian capital has the highest purchasing power per
capita in the country of €29,037, the lowest unemployment rate of 5.2 per cent, and the lowest active market vacancy rate of all major German cities studied in this report
of 0.4 per cent. Munich is home to many different people; the high society of the rich and beautiful, the scenes
in Schwabing, Haidhausen, and Neuhausen, the revellers
at the Oktoberfest and the friendly people who pack into
the countless beer gardens in their thousands during the
summer months. The city can also look back on a long tradition of arts and culture. Under King Ludwig I of Bavaria,
Munich developed into a prestigious royal seat during the
19th century and a widely renowned city of the arts. His
son, Max II, promoted the humanities, gathered the literary
circle known as “The Crocodiles” and commissioned the
development of Maximilianstraße; now one of the most
exclusive and expensive shopping streets in Germany. He
was succeeded by the mysterious “fairy tale King” Ludwig
II of Bavaria, to whom the state owes a number of impressive structures such as the Linderhof, Neuschwanstein,
Herrenchiemsee, and Schachen palaces. Under Prince Regent Luitpold, Munich experienced a major economic and
cultural boom. From 1911, “The Blue Rider” group of artists
was formed in the city, led by Wassily Kandinsky and Franz
Marc. Their works still raise the heartbeats of art lovers
today and change hands for millions at auctions. Munich
culture was also represented by humorist Karl Valentin
with his absurd and comical wordplay, which thrilled audiences on the stage of the “Frankfurter Hof” from 1908. Valentin, whose memorable quotes included “I really would
have liked to love, but I didn’t trust myself to allow it”, has
been immortalised by the people of Munich in a fountain
sculpture in the Viktualienmarkt. Munich has never lost its
appreciation for the arts and culture throughout the eras.
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Munich has by far the highest purchasing power index of all German cities. With
a figure of 132.8, the city is significantly ahead of Dusseldorf (118.7), Frankfurt (115.1)
and Stuttgart (114.0).
The Deutsches Museum, the Lenbachhaus, the three Pinakothek galleries, and the Museum Brandhorst enjoy international acclaim for their exhibitions. In addition to art and
culture, Munich also benefits from a large supply of green
spaces, such as the Englischer Garten, the Hofgarten, the
botanical gardens and palace gardens as well as the River
Isar with its renatured Isar meadows. Munich is the seat
of the Bavarian parliament and the Bavarian state government as well as the Federal Finance Court and European
Patent Office.
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ATTRACTIVE CONDITIONS FOR COMPANIES
The city of Munich is at the heart of the Munich metropolitan region with a population of around 5.8 million and
optimal links to the European rail and motorway network.
Thanks to the new LGV Est high-speed extension, Paris
can be reached within around six hours. To the north,
Munich is connected to Nuremberg via a new high-speed
rail section, which is due to be extended to Berlin.
Munich Airport, the second largest in Germany, handled approximately 39.7 million passengers in 2014; an
increase of around 3 per cent compared with the previous year. The airport is an important hub for European
air transport with over 240 direct routes worldwide, and
is scheduled to receive a third runway to cope with the
growing number of passengers.
The strength of the Munich economy is founded on a balanced mix of global players, “hidden champions” in the
form of SMEs (small and medium-sized enterprises), aspiring start-up companies and traditional craft businesses.
Particular growth drivers include information and communications technology, services, the automotive sector, research and knowledge-intensive sectors, particularly life
sciences, medical and environmental technology and air
and space travel, as well as the finance sector. With around
40 trade fairs, Messe München is one of the world’s leading trade fair companies. Its most renowned events in the
real estate sector are Expo Real and Bauma. Munich is a
particularly significant location for cultural and creative industries, the majority of which can be categorised within
the media sector. Some 10,770 media companies generate combined annual revenues of almost €8.3 billion. The
film industry is particularly prominent in Munich. The heart
of Munich’s film industry is the Bavarian Film Group. The
300,000 square metre site includes 12 studios as well as
several mansion and street shooting locations. Besides Bavaria Film and its many subsidiaries, the site is also home
to more than 100 other media companies.
EXCELLENT HIGHER EDUCATION AND RESEARCH
With 15 universities, academies and colleges, Munich is the
second-largest university location in Germany after Berlin.
During the winter semester 2014/2015, Ludwig Maximilian University of Munich (LMU) and the Technische Universität München (TUM) had approximately 89,000 registered students. In addition to the universities, Munich is
also reinforced as a research centre by such renowned institutions as the Fraunhofer Gesellschaft and Max Planck
Society. These are joined by specialist institutions such as
the Helmholtz-Zentrum – German Research Center for Environmental Health, and the German Aerospace Center
(DLR) site in Oberpfaffenhofen. The close networking of
higher education institutions, extra-university research institutes and research-intensive companies creates profitable collaborations in Munich.
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DISTRIBUTION OF ASKING RENTS IN MUNICH 2014 AND 2015
2014
5.6
3.1
19.9
14.2
35.9
38.1
21.7
25.5
9.8
11.1
2015
7.1
8.0
40%
30%
20%
10%
0%
under €10.00
€10.00 to €12.49
€12.50 to €14.99
€15.00 to €17.49
€17.50 to €19.99
€20.00 and over
The curve of asking rents rises significantly from the €10.00 area, reaching its peak
between €12.50 and €14.99 before levelling off again. The high price segments from
€17.50 upwards showed an increase compared with the previous year.
THE CHALLENGE OF POPULATION GROWTH
The 2011 census for Munich shows 765,681 homes in
140,216 buildings with residential accommodation on the
effective date. Of these buildings, 21.6 per cent date back
to before 1949, 32.8 per cent were built between 1950 and
1969, 25.6 per cent were built between 1970 and 1989, and
20.0 per cent are no older than 1990. Buildings with three
or more residential units account for 87.7 per cent of homes.
In 2014, around 6,250 residential units were completed
(in new residential and non-residential buildings including residential homes). Planning permission was granted
for 7,700 units in these segments. Single and two-person
households comprise the majority of households (ca. 80 per
cent). The proportion of single-person households (54.4 per
cent) is only exceeded in Kiel and Hanover. The 30 to under-45 age group is well represented in Munich. Almost
25 per cent of Munich residents fall into this category compared with a national average of less than 19 per cent.
Munich
Bavaria
Germany
14.61
7.70
6.51
71.3
74.0
68.0
0.4
1.6
3.0
4.4
3.7
2.7
3.8
1.9
1.3
2)
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The number of people living in Munich is primarily determined by migration. At the end of 2014, Munich’s population stood at 1,429,584. Between 2012 and 2030, the
population is expected to grow by 4.3 per cent while the
number of households is expected rise by 7.6 per cent.
The flip sides of this constant growth are rising housing requirements, high cost of living and increasing traffic. In order to develop urban development countermeasures and
concepts, the City has compiled projections for migration
at district level for the period through to 2030. While most
districts on the outskirts of the city are expected to show
significant population growth, lower growth is projected
for the central districts. The largest percentage population
growth is expected in the districts of Aubing-LochhausenLangwied (particularly due to the newly emerging Freiham
area), Schwabing-Freimann, Thalkirchen – Obersendling
– Forstenried – Fürstenried – Solln, Berg am Laim and Bogenhausen. The city centre districts and the areas around
the universities, such as Schwabing West, Schwabing-Freimann, Ludwigsvorstadt-Isarvorstadt and MilbertshofenAm Hart will continue to see positive net migration up to
2030, particularly owing to 18 to 30-year-olds moving to
Munich from outside the city. Migration trends within Munich show a different picture. Those moving within Munich
are, on average, somewhat older than those moving into
the city and often have children. Going forward, they will
continue to prefer less central locations.
Over the last 20 years, some 650 hectares of former barracks, railway, industrial and transport grounds have been
developed in Munich. By 2030, the City expects housing
requirements to total 152,000 new homes. However, building land reserves only provide capacity for 54,000 residential units. As part of Munich’s “long-term settlement
development” (LaSie) action programme, the City has
commissioned procedures to investigate the activation of
the required potential building land. This primarily involved
the densification of settlements from the 1950s and 1980s.
In addition, commercial areas would be transformed into
mixed use areas with a proportion of new types of housing while urban development projects would be progressed
in Munich Northeast in particular. In the second phase of
long-term settlement development, the City of Munich intends to trial and implement concrete re-structuring and
densification projects. A structural concept is being created for Munich Northeast.
To provide affordable housing, the City’s housing policy action programme “Living in Munich V” includes the objectives to grant new development rights for 3,500 residential units and to construct 1,800 subsidised apartments
every year between 2012 and 2016. In response to the increasing land values and rents, the target groups will also
be extended to those on middle incomes. The action plan
provides for fixed areas of between 20 and 40 per cent for
housing associations and building co-operatives in new
developments in urban areas. Furthermore, when tendering urban residential development sites, the City intends
to make increasing use of the conceptual tender process
to avoid excessive competition on price and take greater
account of the quality of the concepts in addition to price
factors. Some of the major planned residential development projects are those in the Paul-Gerhardt-Allee area
in Munich West (2,400 apartments), at Campus South
in Obersendling (1,270 apartments), in Prinz-Eugen-Park
(1,800 apartments), in Messestadt-Riem (1,800 apartments), on the site of the former signalmen’s barracks
(1,600 apartments), in the “Werksviertel München” project
near the Ostbahnhof station (1,400 apartments), on the
site of the Paulaner brewery (1,300 apartments), on the site
on Hochäckerstraße (1,100 apartments) in Perlach, on the
former “Agfa Camerawerk” site (1,000 apartments), in the
creative quarter on Dachauer Straße (900 apartments), in
Parkstadt Schwabing (900 apartments), and on the former
Bayernkaserne barracks site (4,000 apartments). The largest project is the development of the new Freiham district,
where up to 10,000 new apartments are planned.
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CITY PROFILE
EXCLUSIVE ASKING RENTS RISE SIGNIFICANTLY
While many other major cities show by far the highest rents in the city centre and a significant differential
with those in the outskirts, Munich’s residential market is
more homogeneous with a median asking rent of almost
€13.00 per square metre found in suburban districts. The
median exclusive asking rent across the city as a whole
has risen from €12.88 in 2012 to €14.61 per square metre.
The median asking rent in 25 of the 30 city districts studied rose in 2015 compared with the previous year while
three districts posted a decrease and two remained stable. The highest rental increase was seen in the area comprising Parkstadt (South) and Prinzregentenstraße [18],
where the median asking rent was 17.9 per cent higher
than in the previous year. The highest median asking
rent of €18.38 per square metre was found in the trendy
area comprising Schwabing (West) and Neuschwabing
(East) [22]. This area includes the Elisabethplatz – an active market square similar to the Viktualienmarkt – and
the Leopoldpark. The district’s image is characterised by
a wide assortment of cafés and bistros and a high proportion of old architecture. These old buildings have been predominantly renovated to a modern standard. The magnificent apartment buildings in the Art Nouveau, historicism
and expressionism styles were once home to the Bohemians. Average exclusive asking rents are only moderately lower in the area comprising Parkstadt (South) and
Prinzregentenstraße (€17.08), the Altstadt , Maxvorstadt,
Isarvorstadt and Haidhausen [04] areas (€17.01) and the
area comprising Haidhausen-North, Steinhausen and Altbogenhausen (West) [09] (€17.00). In the traditionally
sought-after area comprising Lehel, Englischer Garten, and
Altbogenhausen [11], asking rents decreased for the first
time since 2012, falling by 3.8 per cent compared with the
n
MUNICH
previous year to €16.37. Lehel, the area with the largest
apartments on the market at an average size of 95 square
metre, is one of the most attractive districts in Munich in
terms of architecture. Many of the residential buildings are
built in the neo-baroque or neo-renaissance styles. In addition to the Englischer Garten, the area is also home to
the Haus der Kunst art museum and the Bavarian National
Museum. One of the main attractions is the Eisbach with
its man-made wave that draws surfers from around the
world. Altbogenhausen was designed from the late Wilhelminian period according to standardised urban development principles as a large and prestigious area of villas
and apartment buildings and has largely retained its original character until today. The lowest median asking rent of
€12.86 was found in Fürstenried-West [08] in the southwestern outskirts of Munich as well as in Untermenzing,
Allach, Ludwigsfeld, Feldmoching and Hasenbergl [29].
Only established in the 1960s, the district of Fürstenried is
primarily characterised by large-scale development which,
like in Hasenbergl, was intended to provide affordable
housing as quickly as possible for the growing population.
Today, the apartment blocks have mostly been extensively
refurbished and enhanced with green spaces.
MUNICH HARMONIOUSLY COMBINES DIVERSITY, INTERNATIONALITY AND TRADITION
The Bavarian capital has the highest purchasing power per capita, the lowest unemployment rate, the highest
asking rents and the lowest vacancy rate of all major German cities. With 15 universities, academies and colleges,
Munich is also the second-largest university location in Germany. In addition to its colleges, Munich is also bolstered as a research centre by a number of renowned institutions. The strength of the Munich economy is founded
on a balanced mix of global players, “hidden champions” in the form of SMEs, aspiring start-up companies and traditional craft businesses. The consistent growth provides for rising residential demand in the city, leading to higher
rents due to the inadequate supply. The City estimates that it will require 152,000 new apartments by 2030.
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Asking Rents in mUNICH 2015
City area
Number of
rental offers
Apartment size,
average in m2
[01] Alt-Moosach (North), Moosach-Bahnhof (North)
82
60.0
14.44
[02] Alt-Moosach (South), Moosach-Bahnhof (South),
Neuhausen (North)
181
66.4
14.47
[03] Alte Heide (East), Hirschau, Biederstein, Münchner Freiheit (East),
Oberföhring, Herzogpark
274
81.2
15.42
[04] Altstadt, Maxvorstadt, Isarvorstadt, Haidhausen
831
75.0
17.01
[05] Am Riesenfeld, Milbertshofen, Neufreimann, Alte Heide (West),
Freimann, Obere Isarau
391
61.9
14.17
[06] Englschalking, Daglfing, Johanneskirchen
275
69.0
13.90
[07] Friedenheim, Land in Sonne (West), St. Ulrich, Blumenau,
Am Westbad, Pasing (East)
502
62.9
13.93
63
69.0
12.86
[09] Haidhausen North, Steinhausen, Altbogenhausen (West)
159
82.0
17.00
[10] Harlaching, Neuharlaching, Giesing, Obergiesing (South)
470
77.0
14.50
[11] Lehel, Englischer Garten, Altbogenhausen
232
95.0
16.37
94
70.0
13.42
531
66.0
15.38
[14]
Neuhadern
112
69.5
13.72
[15]
Obermenzing
140
83.5
14.02
[16] Obersendling, Thalkirchen, Siebenbrunn, Untergiesing
347
66.0
14.53
[17] Oberwiesenfeld, Dom Pedro, Nymphenburg (South),
Central Neuhausen
278
71.0
14.70
[08] Fürstenried West
[12] Lerchenau Ost, Am Hart
[13] Marsfeld, St. Benno, Schwanthaler Höhe, Westend,
Neuhausen (South), St. Vinzenz, Alte Kaserne
[18] Parkstadt (South), Prinzregentenstraße
187
80.2
17.08
[19] Pasing (West), Lochhausen, Langwied, Altaubing, Aubing-Süd,
Freiharn, Neupasing
401
75.0
13.36
[20] Riem, Trudering, Josephsburg, Echarding, Berg am Laim,
Ramersdorf (Centre/North)
678
71.0
13.64
[21] Schwabing (East), Münchner Freiheit (Southwest)
172
84.0
16.67
[22] Schwabing (West), Neuschwabing (East)
133
80.0
18.38
[23] Schwere-Reiter-Straße, Neuschwabing (West), Am Luitpoldpark
388
67.0
16.36
[24] Sendlinger Feld, Unter- and Mittersendling, Land in Sonne (East),
Am Waldfriedhof, Großhadern
596
66.0
13.98
[25] Solln, Forstenried
316
80.5
13.61
[26] St. Paul, Ludwigsvorstadt-Kliniken, Am südlichen Friedhof,
Am Schlachthof
281
72.0
16.44
[27] Südgiesing, Fasanengarten
169
72.7
13.55
[28] Untere Au, Obere Au, Obergiesing (North), Balanstr. West (North)
255
67.0
15.40
[29] Untermenzing, Allach, Ludwigsfeld, Feldmoching, Hasenbergl
274
70.0
12.86
[30] Waldperlach, Neuperlach, Altperlach, Ramersdorf (East)
407
74.0
13.21
9,219
71.3
14.61
Munich average
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MUNICH
29
12
05
01
02
15
23
17
19
22
13
07
14
03
21
06
11
04
09
18
26
20
28
24
10
16
30
08
25
27
12.86 – 13.39
13.40 – 13.66
13.67 – 13.97
13.98 – 14.46
14.47 – 14.79
171
14.80 – 16.12
16.13 – 16.79
16.80 – 18.38
CITY PROFILE
n
NUREMBERG
Nuremberg: The knowledge economy hub
Bavaria’s second-largest city has successfully overcome the structural change from a traditional
industrial location to a state-of-the-art knowledge centre. The housing market is currently characterised by significant surplus demand – and asking rents are continuing to rise accordingly.
Nuremberg, which combines with Erlangen and Fürth to
form the centre of a coalescing metropolitan region home
to some 3.5 million inhabitants, has achieved a harmonious blend of tradition and modernity. The delightful historical city centre, various cultural offerings, world-famous Christmas market, the annual International Toy Fair,
extensive shopping amenities, numerous green spaces,
local recreation areas and range of restaurants are continuously being improved and expanded. For residents,
these factors mean a high quality of life and for companies, a significant location advantage when competing
for the greatest minds. At the same time, the city is successfully overcoming a comprehensive structural change,
away from traditional production and towards a high-tech,
“Industry 4.0” manufacturing and innovative service location. On a daily basis, more than 140,000 employees subject to social security contributions commute to Nuremberg to work. Growth industries particularly include the
energy industry, information and communication tech-
nology, energy technology, sustainable urban infrastructures, medical technology and service development, as
well as logistics and logistics-related services. The numerous universities as well as national and international
research institutions combined with the innovative networking of science, research and entrepreneurship qualify
Nuremberg as a knowledge economy hub with considerable potential. Nuremberg is traditionally a migrant city
and the population has risen consistently in recent years.
However, the housing stock has fallen significantly behind the growing number of inhabitants. By 2030, the
population is projected to grow by 3.7 per cent compared
with 2012 levels, with the number of households rising
by 7.3 per cent. Single-person households are already
strongly represented in the city at present. Every second
household is comprised of only one person.
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NUREMBERG
Nuremberg is the bratwurst capital. Around a billion of the sausages are made in
the city each year. By way of comparison, just 75 million Weißwurst (Bavarian veal)
sausages are produced each year in Munich.
NEW BUILD IS INCREASING BUT DOES NOT
COVER DEMAND
To take account of the population growth in terms of quality and quantity, the City commissioned the “Wohnen
2025” (Housing 2025) study to determine the concrete
measures required in the area of housing and building land
policy. According to the study, new-build requirements
by 2030 total around 23,000 residential units. However,
a comparison of new-build requirements and available
building land shows that, while 7,500 new-build residential units are required by 2020, the land available and
ready for building provides space for 1,860 units. The City
now intends to take the results of the study forward by
creating an action programme.
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NUREMBERG
In 2014, around 1,600 residential units were completed
(in new residential and non-residential buildings including residential homes), which was below the projected requirements. In order to drive the necessary construction
of rental apartments, the City has adapted subsidy conditions to the changed market situation and has tightened
the “quota system” in the course of granting development
rights. Previously, an allocation of 30 per cent was required
for subsidised housing when building more than 100 multistorey apartments. In future, however, an allocation of
20 per cent of residential space will have to be made when
building more than just 70 multi-storey apartments. Sites
in the city will be increasingly allocated on the basis of
housing policy weightings (conceptual tender). Growth
in new-build activity will become increasingly difficult as
space becomes more scarce, particularly since there is
considerable competition for space between residential
and commercial uses and open space in Nuremberg. According to the 2011 census, there were 71,408 existing
buildings with residential space comprising 266,267 residential units. Owing to widespread destruction during the
Second World War, the majority of buildings in Nuremberg
(50.7 per cent) were built between 1949 and 1978. Property built after 2001 accounts for just 6.6 per cent. Modification of existing buildings to present standards with
regard to energy and age-appropriate fit-out will create
challenges for landlords in the coming years.
STRUCTURAL CHANGE OPENS UP NEW DISTRICTS
The closure of large companies with a long tradition, such
as Grundig, Quelle, and AEG from 2003 to 2009 posed
major challenges for the City of Nuremberg. However,
these have been overcome with a high degree of innovation. The site of the former AEG Group, for example, is being transformed into the “Auf AEG” district, which accommodates a variety of uses including offices, production,
handicraft, retail, restaurants, art, and culture. With the
support of the Free State, it will be developed into a science and research location over the coming years. Construction of up to 250 apartments is planned over the
coming years on a four-hectare subplot on the car park of
the former Quelle distribution centre. The centre itself, a
listed building that has accommodated numerous artists,
creatives and start-up companies as interim users in recent
years, was subject to a compulsory auction in July and, going forward, will be occupied for a variety of uses including
retail, offices, housing, a hotel, a creative hub, and leisure.
In the district of Maxfeld, the KIB group is developing the
“Nordstadtgärten”, with 600 to 800 apartments and generous landscaped areas on the site of the former Tucher
brewery by 2018. The conversion of Nuremberg’s former
Südbahnhof railway station on Brunecker Straße is one of
the largest urban development projects in Germany. The
95-hectare site is planned for development as a mix of residential, commercial, and green space, with the latter occupying around one third of the site. The Lichtenreuth urban
quarter is scheduled for completion in phases by 2032.
ASKING RENTS CONTINUE TO RISE
Nuremberg’s population grew by 2.2 per cent from the
end of 2011 until the end of 2014. Due to the positive
population growth and relatively conservative housebuilding activity, rents have been rising steadily for years.
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DISTRIBUTION OF ASKING RENTS IN NUREMBERG 2014 AND 2015
2014
4.4
3.1
27.6
21.6
35.9
38.7
19.5
22.0
7.5
9.6
2015
5.1
5.0
40%
30%
20%
10%
0%
under €6.00
€6.00 to €7.49
€7.50 to €8.99
€9.00 to €10.49
€10.50 to €11.99
€12.00 and over
The price growth in Nuremberg is reflected in the distribution of asking rents.
More than a third of listings were more expensive than €9.00 per square metre in
2015 while only around a quarter of asking rents were below the €7.50 mark.
While landlords were quoting an average of just €7.65 per
square metre on new lettings in 2012, this rose to €8.12 in
2014 and €8.42 per square metre in 2015. The highest median asking rent of €9.50 per square metre is found in the
area comprising the Altstadt/St. Sebald [02] up towards
the castle. However, this compares with €9.69 in the previous year and €10.00 in 2012. Asking rents are moderately lower in the North district [07] at €9.07, where the
increase of 9.9 per cent represented the strongest growth
in the city, and in the area comprising Pirckheimerstraße,
Uhlandstraße, Maxfeld, and Schleifweg [09] near the city
centre, with an average of €9.00 per square metre. This
area, adjacent to Sebalder Altstadt in the north, is in high
demand owing to its many green spaces and numerous
streets lined with houses from the Art Nouveau and Wilhelminian periods. Of the 12 city districts studied, rents
only declined in one, while two remained stable and the
remainder showed increases in asking rents ranging from
Nuremberg
Bavaria
8.42
7.70
6.51
66.0
74.0
68.0
1.0
1.6
3.0
3.1
3.7
2.7
2.2
1.9
1.3
2)
Germany
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Asking Rents in nUREMberg 2015
City area
Number of
rental offers
Apartment size,
average in m2
[01] Altstadt/St. Lorenz, Marienvorstadt, Tullnau, Wöhrd, Veilhof
494
60.0
8.65
[02] Altstadt/St. Sebald
[03] Bielingplatz, Sandberg, St. Johannis, Himpfelshof, Bärenschanze,
Eberhardshof, Muggenhof
200
62.0
9.50
670
64.9
8.75
[04] Gebersdorf, Röthenbach-West and -Ost, Eibach
246
70.0
8.00
[05] Langwasser, Dutzendteich, Beuthener Straße, Altenfurt
228
70.1
7.78
[06] Ludwigsfeld, Glockenhof, Guntherstraße, Hasenbuck
629
65.0
8.42
[07]
North
334
78.0
9.07
[08] East, Northeast
598
70.0
8.68
[09] Pirckheimerstraße, Uhlandstraße, Maxfeld, Schleifweg
559
67.0
9.00
[10] South, Southwest
278
78.0
7.66
[11] Tafelhof, Steinbühl, Gibitzenhof, Galgenhof, Hummelstein
672
63.0
7.76
[12] Werderau, Hohe Marter, Schweinau, St. Leonhard, Sündersbühl,
Gaismannshof, Höfen, Grossreuth
430
63.4
8.08
5,338
66.0
8.42
Nuremberg average
1.1 to 9.9 per cent. Nuremberg also introduced the Mietpreisbremse (capping of rents on re-letting) on 1 August.
In contrast, the lowest rents are found in the districts to
the south and west of the city walls. In addition to the
southern and southwestern district of the city [10] at
€7.66 per square metre, this also includes the area comprising Tafelhof, Steinbühl, Gibitzenhof, Galgenhof and
Hummelstein [11] with a median asking rent of €7.76 per
square metre. These areas are characterised by smallscale, mixed-use development comprising residential and
commercial property, mostly from the 1950s and 1960s.
In Steinbühl and Galgenhof, the structure of the district is
changing with funds from the “Soziale Stadt” (Social City)
subsidy programme, as well as developments by private
investors.
CONSTRUCTION ACTIVITY IS INCREASING – RISING COMPETITION BETWEEN USE CLASSES
Nuremberg is developing into a successful knowledge economy hub with a growing population and a strong
economy. Due to positive population growth and relatively conservative housing construction activity, rents are
continuing to rise. The active market vacancy rate of 1.0 per cent indicates a significant surplus in demand. By
2030, the City estimates that it will require around 23,000 new homes each year. However, land is in short supply
and there is increasing competition from requirements for commercial use and open spaces. By 2032, one of the
largest urban development projects in Germany will be completed in the conversion of Nuremberg’s former Südbahnhof railway station.
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07
09
03
12
02
11
08
01
06
04
05
10
7.66 – 7.77
7.78 – 7.94
7.95 – 8.12
8.13 – 8.54
8.55 – 8.68
177
8.69 – 8.81
8.82 – 9.04
9.05 – 9.50
CITY PROFILE
n
R O STO C K
Rostock: Solid growth on the Baltic coast
buoyed by technology and tourism
Rostock has completed the trend reversal towards sustainable development earlier than
many other eastern German cities. The housing market is generally in good health, although
Plattenbauten (slab constructions) in peripheral areas remain a challenge for the market.
Rostock’s economic structure is characterised by its location on the Baltic Sea. The major pillars of the economy
are the port, as a transhipment point for freight and ferry
traffic, as well as the large shipyards and tourism. The
university, Technology Centre Warnemünde and the Innovations- und Gründerzentrum Rostock are the innovative centres of the city. Rostock’s biomedical research
centre combines and networks the city’s biotech activities under the “BioCon Valley” initiative. The same objectives in biomedical technology are served by the city’s integration into the international “ScanBalt initiative”. The
city’s broadly-based economy meant that Rostock transitioned from contraction to growth earlier than other
eastern German cities. Following a decline in population
of some 20 per cent, the nadir was reached in 2002 and
the city has been back on an upward trajectory ever since.
In 2014, Rostock had 16.4 per cent more employees sub-
ject to social security contributions than in 2004. This
places the city in the top half of all 29 cities studied in this
report and above the German average. The purchasing
power per capita is relatively low, but higher than in Leipzig, Magdeburg, Duisburg and Halle (Saale). Thanks to
the university and the burgeoning economy, the proportion of 18 to 29-year-olds is above average. So too, however, is the proportion of those above the age of 59. Current population and household projections for the period
from 2012 to 2030 are significantly negative. However,
this trend has not materialised to date.
SOUGHT-AFTER LOCATION, MODERATE RENTS
Thanks to the economic and population growth, Rostock’s residential market is showing overall positive
growth, albeit there is much variation between the individual districts. The median asking rent rose by 2.6 per
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R O STO C K
The Hanse Sail is one of the world’s largest gatherings of traditional sailing ships
and an important factor for the Rostock economy. The event attracts five visitors
for every inhabitant of the city.
cent to €6.30 per square metre per month in 2015. The
vacancy rate, which at 4.3 per cent in 2009 was already
lower than in the majority of eastern German cities, fell to
3.1 per cent by 2014. In its most recent rent index, the City
stated: “Housing in Rostock is a valuable commodity and,
unfortunately, at present a rare one. […] It is, therefore,
all the more important to regulate the rare commodity of
housing such that it remains affordable. It will certainly
not succeed in satisfying all housing needs at low prices.”
Rostock’s rental distribution is similar to that in many
other cities. Central locations and historic areas near the
city centre are particularly sought after, while peripheral
areas comprising large quantities of apartment blocks
from the 1960s to 1980s face particular challenges. Un-
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CITY PROFILE
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R O STO C K
surprisingly, one submarket sits alone at the top of the
rent rankings: The seaside resort of Warnemünde. This
includes the rural tourist area of Diedrichshagen and the
locality of Hohe Düne, which is used exclusively for bathing and hospitality. Warnemünde has been part of Rostock since 1323 but lies around 10 kilometres northwest of
the city centre and, to this day, remains remote from the
city in terms of urban development. Historically, the locality is a fishing and harbour area with a history of almost
200 years as a seaside resort. Today, the picturesque area
on the River Warnow and close to the beach is almost
completely dedicated to tourism. Condominiums are typically owned by holidaymakers and landlords from outside
the area. Rental apartments are concentrated in the inland
blocks and strips throughout the submarket with asking rents averaging €9.63 per square metre in 2015. Supply of unfurnished rental apartments in Warnemünde is
generally low. New development would make financial
sense. However, the residential area of Warnemünde is
surrounded by water, port businesses and protected landscapes and can still only be partially extended. New-build
developments have already commenced in the “Molenfeuer” (lighthouse) and Dünenquartier areas while the
Mittelmole (central pier) offers further potential.
IDYLLIC STATION QUARTER
In more central Rostock, the city centre including the Altstadt , Hansaviertel, and Kröpeliner-Tor-Vorstadt [01]
districts comprise the most expensive area. Asking rents
here averaged €8.50 per square metre in 2015. The Altstadt still contains many historic buildings, which have
been extensively modernised in the last 25 years. Another
highly attractive area is the Bahnhofsviertel between the
historic centre and the train station – both central and
characterised by historic townhouses with tree-lined
streets and green courtyards. However, residential use
competes here with service companies who have also
long since discovered this practical yet prestigious area.
The vibrant demand and a number of brownfield sites also
make the centre a focal point for new-build rental property, such as on the Am Vögenteich arterial route, in the
more peripheral Holzhalbinsel area and in the adjacent
Petriviertel district.
The western area comprising the Kröpeliner-Tor-Vorstadt
and Hansaviertel districts is somewhat more modest. Towards the city centre, old buildings from the Wilhelminian
era dominate while the remaining areas are characterised
by more recent and simple rental apartment blocks. The
further one travels from the city centre, the more recent,
modest and inexpensive the architecture and apartments
become. Purely in terms of postcode, the city centre also
includes the large eastern city district of Brinckmansdorf.
However, this area is of little significance for the rental
market since it almost exclusively consists of single-family houses.
WHERE STUDENTS AND SENIOR CITIZENS LIVE
In Rostock’s Südstadt [05] district, the median asking rent
of €7.00 per square metre in 2015 was above the average
for the city. On the one hand, this is Rostock’s oldest area
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R O STO C K
DISTRIBUTION OF ASKING RENTS IN ROSTOcK 2014 AND 2015
2014
12.5
11.0
43.3
42.2
17.8
19.0
17.0
17.4
6.6
7.8
2015
2.7
2.6
50%
40%
30%
20%
10%
0%
under €5.00
€5.00 to €6.49
€6.50 to €7.99
€8.00 to €9.49
€9.50 to €10.99
€11.00 and over
Rostock’s rental market remains inexpensive, with more than half of apartments
marketed for less than €6.50 per square metre in 2015. Only around a quarter were
listed for more than €7.99 per square metre.
of Plattenbau buildings from the 1960s and has limited
architectural and atmospheric charm. On the other hand,
Südstadt begins a short distance behind the main train station and is only 10 minutes from the Altstadt district by
tram. The area is also home to a number of university institutes. Südstadt is dominated by two demographic groups,
which are generally strongly represented in Rostock: Senior
citizens and students. The location is practical but is definitely not a trendy district.
In the western districts of Reutershagen and Evershagen,
the majority of the rental apartments date back to the
former East Germany. The first new-build area in Reutershagen was completed in 1957 in the Soviet-inspired
monumental style, now kindly referred to as “socialist classicism”. Subsequently, Plattenbau buildings were
built firstly in Reutershagen, then in Evershagen, in rows,
blocks, long chains and high-rise blocks, as well as special building types known as “windmills” or “stilted high-
Rostock
Meckl.-West. Pomerania
6.30
5.80
6.51
58.0
60.0
68.0
3.1
4.7
3.0
2.1
2.6
2.7
1.3
1.1
1.3
2)
Germany
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CITY PROFILE
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R O STO C K
Asking Rents in rostock 2015
City area
[01] Altstadt, City Centre, Hansaviertel, Kröpeliner-Tor-Vorstadt
[02] Gehlsdorf, Toitenwinkel, Dierkow, Rostock-Ost
[03] Groß Klein, Lichtenhagen, Lütten Klein, Schmarl, Evershagen (North)
Number of
rental offers
Apartment size,
average in m2
1,157
56.0
8.50
781
61.6
5.11
1,355
57.7
5.52
[04] Reutershagen, Evershagen (South)
210
57.7
7.01
[05] Südstadt, Biestow, Gartenstadt/Stadtweide
143
52.0
7.00
[06] Warnemünde, Diedrichshagen, Hohe Düne
Rostock average
rises”, and finally stepped high-rises. The median asking
rent of €7.01 per square metre in Reutershagen and Evers
hagen (South) [04] was due to the high level of refurbishment, the fact that the area is not too far removed from
the city centre and the large amounts of green space between and around the buildings. The 3.0 per cent increase
in the median asking rent in 2015 was the highest in the
entire city.
LOW DEMAND IN AREAS OF PLATTENBAU
Situated in the northwest of Rostock, the area comprising the districts of Groß Klein, Lichtenhagen, Lütten Klein,
Schmarl, and Evershagen (North) [03] is even more
strongly characterised by Plattenbau buildings. The median asking rent of €5.52 was far below that of the neighbouring area, while the 0.5 per cent increase on the previous year was also significantly lower. There are practically
no high-value rental apartments. Even the most expensive
decile of asking rents started at €6.50 per square metre.
95
62.0
9.63
3,741
58.0
6.30
With more than 1,300 apartments, the area was also the
largest submarket researched in Rostock, which also had
a dampening effect on the figures.
The least expensive asking rents in Rostock in 2015 were
found by apartment-seekers in the east of the city in Gehlsdorf, Toitenwinkel, Dierkow, and Rostock-Ost [02].
The median asking rent in 2015 stood at €5.11 while the
least expensive decile was below €4.40 per square metre. Toitenwinkel, a major area of Plattenbau buildings, is
structurally almost isolated from the rest of the city. More
than 500 apartments have been demolished in the area
and surveyors recommended the removal of at least a further 1,100 units in 2012. In contrast, Gehlsdorf is an attractive residential location on the banks of the River Warnow
that comprises predominantly small-scale development,
including in refurbished old villas. Rents on the new build
developed here in recent years are significantly higher
than those in Toitenwinkel.
TWO STRONG CENTRES OF GROWTH WITH CHALLENGING INTERMEDIATE AREAS
The seaside resort of Warnemünde, with its expansive beach and picturesque old houses, remains Rostock’s tourismdriven hotspot in the market. The city centre also has good growth prospects, benefiting from attractive development
and infrastructure. Rostock is expected to see further robust development, with well-positioned and marketable new
builds likely to find takers and existing buildings offering further potential for rental growth. However, the large stock
from the inter-war and particularly the post-war decades are somewhat problematic. At that time, development in
Rostock was focused on quantity rather than quality. Today, these areas suffer from their monotony and the changing
preferences of more discerning apartment seekers. Rental growth is likely to be limited from current levels.
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CITY PROFILE
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R O STO C K
Baltic Sea
06
02
03
04
01
05
5.11 – 5.37
5.38 – 5.89
5.90 – 6.82
6.83 – 7.00
7.01 – 7.19
183
7.20 – 8.13
8.14 – 8.92
8.93 – 9.63
CITY PROFILE
n
ST U T TG A RT
Stuttgart: Open-minded, diverse, tolerant
The state capital of Baden-Württemberg is notable for its altitude difference of almost 350 metres.
The attractiveness of the city and the limited availability of space create a strained housing market,
especially in the low-cost segment.
Stuttgart is the seat of the state government and the parliament, and thus the political centre of Baden-Württemberg. With a population of 612,441 (end of 2014), Stuttgart is characterised by its topography like almost no other
city. Its altitude ranges from 207 metres at the Neckar lock
at Hofen to 549 metres at the top of the Bernhartshöhe.
To overcome this height difference, there are more than
400 “Stäffele”, as the sets of steps are affectionately called.
The core city itself is located in the “Stuttgarter Kessel”, the
basin of Stuttgart, which limits the availability of building
land in terms of area, as well as ventilation.
MOBILE AND CREATIVE, FOCUS ON HIGH-TECH
Stuttgart’s economic strength is based on its wide variety
of sectors, strong exports, an impressive service industry and innovation. The city is best known as a centre of
excellence for transport. Gottlieb Daimler invented the
first motor-driven vehicle here in 1886. Today, Daimler
employs nearly 18,000 personnel at its Stuttgart loca-
tion. Major companies in the automotive parts industry,
led by Robert Bosch, work in close cooperation with educational, scientific and research institutions in the area.
However, the city is also one of the primary locations in
the European aerospace industry. Around 80 per cent of
aerospace engineers in Germany are educated at the University of Stuttgart. The European centre of excellence
for mechanical and electrical engineering manufactures
state-of-the-art products in the areas of machine tools,
industrial lasers, high-performance electronics, medical
technology, and environmental technology. Stuttgart is
also an important German financial centre with the second largest stock exchange in the country. The research
infrastructure of the state capital enjoys a leading position nationwide, particularly in the areas of basic and applied research. Around 45 per cent of the research and
development capacity of the State of Baden-Württemberg is clustered here. Seven public and a range of private
universities are a rich source of highly skilled workers.
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CITY PROFILE
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ST U T TG A RT
Stuttgart is a leader when it comes to exports. The export ratio in the city’s manufacturing sector stood at 78 per cent in 2014. By way of comparison, equivalent figures were 54 per cent for Baden-Württemberg and 46 per cent for all of Germany.
ATTRACTIVE CITY LIVING
The city is a highly dynamic business location and requires an educated workforce. Insofar as demand cannot be covered by the domestic workforce, recruitment
of foreign workers is set to continue. At the end of 2014,
the proportion of foreign residents stood at almost 24 per
cent. Although Stuttgart is the core city of the region, it
competes for residents, businesses and workers at regional level with a total of 14 medium-sized centres. The
polycentricity of the region is not due to the suburban
densification processes of recent times but is rooted in
historical traditions. Despite heavy destruction during
the Second World War, Stuttgart’s city centre boasts numerous historic buildings such as the Altes Schloss and
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Neues Schloss, the Königsbau, and the market hall, all
of which were faithfully reconstructed after the war. The
“Green U” in the city centre is a range of parks extending up to the Killesberg. Even though iconic districts and
a bustling club scene are normally associated with Berlin, these can also be found in Swabian Stuttgart, such as
the quarter around Hans-im-Glück-Brunnen or the western part of Stuttgart. It is little wonder, then, that population figures have been on the rise for years, including an
impressive 3.6 per cent increase from the end of 2011 to
the end of 2014. The cyclical high demand for labour in
the Stuttgart region and the economic and social situation specifically in southeastern Europe have resulted in
continued net migration from abroad. Accordingly, the
proportion of under-30s in Stuttgart is above-average by
nationwide comparison at around one third. Conversely,
the proportion of over-60s is relatively low at less than a
quarter of the population.
GROWING NUMBER OF HOUSEHOLDS DRIVES
DEMAND for housing
Forecasts predict that the Stuttgart population will grow
by 4.5 per cent between 2012 and 2030, while the number of households is set to increase by as much as 8.2 per
cent. City authorities are addressing future housing needs
by targeting 1,800 new residential units per annum, of
which 600 units will be subsidised housing. The total of
almost 1,700 housing completions in 2014 (in new residential and non-residential buildings including residential homes) fell just short of this target. The active market
vacancy rate in apartment buildings now stands at 1.0 per
cent (2014). Due to the constant high demand for housing, the trend towards urban living, and the fact that the
per capita living space consumption has been on the increase for years, there is currently significant surplus
demand in certain sub-segments of the housing market.
Affordable housing in central locations is increasingly under pressure. Furthermore, there is a shortage of smaller
apartments. Despite the primacy of internal development,
the “Wohnen in Stuttgart” (Living in Stuttgart) concept
was formulated to provide a quantitatively and qualitatively adequate housing supply, which entails the right to
develop waste and conversion land as well as increasing
density in existing quarters. The most extensive development project of the city, which is well-known throughout
Germany, is the “Stuttgart 21” programme. In addition to
the re-organisation of the Stuttgart rail node, the project
will create a vast tract of land for the development of several thousand of new apartments in the Stuttgart basin, a
place of special significance for the city in terms of urban
development. The promotion of social housing will be fostered by way of the city development model “Stuttgarter
Innenentwicklungsmodell” (SIM). This provides for 20 per
cent of the floor area of newly built residential buildings
to be allocated to subsidised housing. In addition, urban
sites are to be tendered with greater emphasis on the
conceptual tender process. This will assign a weighting of
30 per cent to the purchase price and 70 per cent to the
concept quality. The Mietpreisbremse (capping of rents
on re-letting) was also introduced for new lettings of existing apartments in Stuttgart on 1 November 2015.
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DISTRIBUTION OF ASKING RENTS IN StUTTGART 2014 AND 2015
2014
4.1
3.3
19.0
13.8
35.0
34.1
23.3
25.5
11.5
15.3
2015
7.0
8.1
40%
30%
20%
10%
0%
under €7.00
€7.00 to €8.99
€9.00 to €10.99
€11.00 to €12.99
€13.00 to €14.99
€15.00 and over
Almost 60 per cent of asking rents range from €9.00 to €12.99 per square metre.
However, the inexpensive segment accounts for just 17 per cent of listings, which
is lower than the high-priced segment (approx. 23 per cent).
The median exclusive asking rent in the Baden-Württemberg state capital rose from €10.47 per square metre in
2014 to €10.91 in 2015. The most expensive asking rent of
€13.44 per square metre was witnessed in the area comprising Am Bismarckturm, Lenzhalde, An der Burg, and
Killesberg [01]. The area is located halfway up a hillside
with views across the city and predominantly small-scale
development and is regarded as one of the finest residential areas of the city. Stuttgart’s largest development area,
the Killesberghöhe, is also located here on the site of a
former exhibition centre. Indeed, several hundred rental
apartments and condominiums have already been completed here in recent years. However, the supply of rental
apartments in the area in 2015 was somewhat limited on
the whole.
In 17 of the 21 districts in Stuttgart studied, the median exclusive asking rent in 2015 was at least €10.00 per square
metre. In 2012, this was only true of 12 districts. Afford-
Stuttgart
Baden-Württemberg
Germany
10.91
7.82
6.51
74.0
75.0
68.0
1.0
1.8
3.0
2.8
3.1
2.7
2.4
1.6
1.3
2)
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Asking Rents in stuttgart 2015
City area
[01] Am Bismarckturm, Lenzhalde, An der Burg, Killesberg
Number of
rental offers
Apartment size,
average in m2
78
107.0
13.44
[02] Auf der Prag, Weißenhof
126
65.0
13.03
[03] Berg, Stöckach, Ostheim, Uhlandshöhe, East, Gablenberg
294
67.8
11.05
[04]
Botnang
66
78.5
10.52
[05] Degerloch, Sonnenberg, Hoffeld, Haigst
173
75.0
11.00
[06] Feuerbach, Hohe Warte
210
74.0
11.26
[07] Hasenberg, Rotebühl, Heslach
179
65.0
11.43
[08] Heusteigviertel (North), Oberer Schlossgarten, Dobel, Diemershalde
248
90.0
12.21
[09] Heusteigviertel (South), Lehen, Weinsteige
110
89.5
12.03
[10] Mitte, City Hall, Karlshöhe
339
84.4
13.41
[11] Möhringen, Sternhäule, Fasanenhof East
154
78.0
10.68
[12] Münster, Hallschlag, Burgholzhof, Birkenäcker, Altenburg
126
75.0
10.00
[13] Neue Vorstadt, Relenberg, Rosenberg, Feuersee
275
75.0
12.61
[14] Plieningen, Birkach, Steckfeld, Schönb., Sillenb., Heumaden, Riedenb.
345
74.0
10.28
[15] Stammheim, Zuffenhausen, Neuwirtshaus
229
66.0
9.95
[16] Untertürkh., Wangen, Uhlbach, Obertürkh., Hedelfingen, Rohracker
270
65.0
9.76
[17] Vaihingen, Heerstraße, Höhenrand, Dachswald, Kaltental, Büsnau
213
68.0
11.11
[18] Veielbrunnen, Kurpark, Winterhalde, Im Geiger, Espan, Sommerrain
281
70.0
10.19
[19] Wallgraben, Dürrlewang, Rohr, Fasanenhof
161
71.2
10.14
[20] Weilimdorf, Bergheim, Hausen, Giebel
133
79.0
9.72
[21] Zazenh., Freiberg, Rot, Mühlh., Mönchfeld, Hofen, Steinhaldenfeld
136
69.8
9.52
4,146
74.0
10.91
Stuttgart average
able apartments were available at the northern city limits. In the area comprising Zazenhausen, Freiberg, Rot,
Mühlhausen, Mönchfeld, Hofen, and Steinhaldenfeld [21],
which are dominated by both multi-storey and fragmented development and less exclusive housing, the median asking rent in 2015 stood at €9.52 per square metre.
With an average of €9.72 per square metre, asking rents
in Weilimdorf, Bergheim, Hausen, and Giebel [20] were
also below the citywide average in 2015.
STUTTGART IS A VIBRANT METROPOLIS WITH STRONG ECONOMIC GROWTH AND INNOVATION
Stuttgart is the seat of the state government and the parliament, and thus the political centre of Baden-Württemberg. The notable features of the city include its topography and the polycentricity of the surrounding region. The
city is particularly renowned for its automotive sector. However, its economic strength is based on a wide variety of
sectors, an impressive service industry and innovative prowess. The growing population figures are due to net migration as well as the birth rate exceeding the death rate, while growth in the number of households is also expected to
be above average going forward. There is significant surplus demand in the housing market, particularly for inexpensive housing and small apartments. Despite the already high levels, asking rents continue to rise, which can be partly
absorbed by the high purchasing power.
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21
15
12
20
06
18
02
01
03
04
13
10
07
16
08
09
17
05
11
14
19
9.52 – 9.85
9.86 – 10.14
10.15 – 10.40
10.41 – 11.00
11.01 – 11.19
189
11.20 – 12.03
12.04 – 12.82
12.83 – 13.44
CITY PROFILE
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Wiesbaden: Elegant spa city and ambitious
service centre
The Hessian state capital has evolved from a fashionable health resort into an international
administrative and service centre. Increasing demand for housing, particularly in the villa and
Wilhelminian-period districts, is not being met with sufficient supply.
Wiesbaden is one of Europe’s oldest spa towns. The “Nice
of the North” enjoyed its heyday in the 19th century, when
the city became a playground of high society, where nobility and bourgeoisie gathered for entertainment and recuperation. The stays of the German Emperor Wilhelm I and
Wilhelm II, in whose favour Wiesbaden became the meeting place of the nobility, arts, and politics, drew crowds to
the area. Since Wiesbaden suffered little structural damage in the Second World War, the historical building stock
largely survived. The original functional areas of the spa
town remain visible. The Quellenviertel area features the
old bath houses, now operated as hotels. The Kurhaus
boasts the casino that received a literary memorial in the
Dostoyevsky novel “The Gambler”, but it is also the venue
of balls and large festivals. Wiesbaden’s reputation as a
world spa city is also attributable to a number of presti
gious public buildings and extensive landscaped grounds
in the city centre. The two urban expansion zones, Bergkirchenviertel and Inneres Westend, reflect the structure
of the historic working-class district with its characteristic courtyards and workshops still largely intact. The urban
expansion zone Ringkirchenviertel remains the preferred
residential area of the upper middle class. The heritageprotected overall structure of Wiesbaden is one of the
most extensive heritage areas in Germany. The maintenance and preservation of the historic building stock has
played a significant role in the city’s urban development
for decades. In summer 2012, the City submitted an application to become a UNESCO World Heritage Site as the
“stage of high society and culture in the 19th century”.
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The new European headquarters of the US army is being developed in
Wiesbaden over the next few years. By 2016, the site is expected to be used by
almost 20,000 people.
SERVICES AND SECTORS
Wiesbaden’s 275,116 inhabitants (at the end of 2014)
make it the second largest city in Hesse. The city is well
connected by road, rail and the Rhine and Main rivers. Frankfurt International Airport is around 25 kilometres away. There is a wide variety of study options at the
RheinMain University of Applied Sciences, the European
Business School and the Hessian University of Police and
Administration. The economy of Wiesbaden is characterised by a broad mix of sectors, ranging from service
companies, high-tech companies, IT companies and a vibrant creative industry to the manufacturing industries.
More than 80 per cent of employees are employed by
service companies, including many government agen-
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cies, as well as key federal authorities such as the Federal
Statistical Office and the Federal Criminal Police Office.
Financial and insurance companies also play a significant
part in the services sector. These benefit from the proximity of Wiesbaden to the financial metropolis of Frankfurt and the European Central Bank (ECB), which is based
there. Another pillar of economic growth in Wiesbaden is
the consulting industry with a variety of consulting firms
and independent consultants. As a health location, the
spa town boasts renowned rehabilitation facilities and a
dense network of clinics. Wiesbaden is home to numerous world market leaders as well as the European and
German headquarters of many international companies.
The German subsidiary of US pharmaceutical company
Abbott also has its head office in the state capital. Wiesbaden is also home to the headquarters of the American
armed forces in Europe.
STRONG NET MIGRATION AMONG YOUNG PEOPLE
The population of Wiesbaden is expected to grow by
6.6 per cent between 2012 and 2030, while the number of households is projected to increase by as much
as 10.4 per cent. These forecasts are significantly more
positive than those for neighbouring Frankfurt, although
the 60-plus age group is less strongly represented in
Frankfurt than in Wiesbaden. The 2011 census for Wiesbaden recorded 40,180 buildings with living space and
142,536 homes. More than a third of these buildings are
apartment buildings, which contain some 79.6 per cent
of all residential units. The active market vacancy rate in
apartment buildings stood at 2.0 per cent (2014), which
was higher than in neighbouring Frankfurt and Mainz. The
building stock in Wiesbaden primarily dates from the
period after the Second World War. The largest proportion of 44 per cent was constructed in the years from
1949 to 1978. Only 6.4 per cent of the housing stock was
built after the turn of the millennium. Some 18.5 per cent
of buildings were built before 1919, while 11 per cent date
back to the period from 1919 to 1948. There are significant local variations in terms of the age of building stock.
The oldest buildings are found in the districts of Westend and Bleichstraße and the city centre, where more
than 70 per cent of buildings with living space were built
before 1949. However, the proportion of old buildings in
Kostheim, Rambach, and Biebrich is also well above average for Wiesbaden. Mainz-Amöneburg, Auringen, and
Schierstein have a high proportion of new build (built after
2001). The district of Rheingauviertel/Hollerborn, close
to the city centre, enjoys something of a special position thanks to the two conversion areas Europaviertel and
Künstlerviertel that were developed for residential purposes. Some 550 new residential units were completed in
Wiesbaden in 2014, which was in line with the previous
year. Almost half of the new units were condominiums
and the majority were in apartment buildings.
ASKING RENTS ACROSS THE CITY ON THE INCREASE
The median exclusive asking rent in Wiesbaden has risen
from €8.81 to €9.24 per square metre over the last three
years. In 2015, the median asking rent rose by at least
2.0 per cent compared with the previous year in four of
the nine city districts studied. The highest median rents
of €10.69 were quoted in the traditionally expensive area
comprising Sonnenberg and Nordost [08]. Sonnenberg
is located to the northeast of the city centre, with extensive villa districts along the slopes of the valley from the
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DISTRIBUTION OF ASKING RENTS IN WIESBADEN 2014 AND 2015
2014
1.0
0.7
19.5
16.4
46.8
48.4
21.8
24.8
7.1
6.8
2015
3.7
2.9
50%
40%
30%
20%
10%
0%
under €6.00
€6.00 to €7.99
€8.00 to €9.99
€10.00 to €11.99
€12.00 to €13.99
€14.00 and over
Almost two thirds of asking rents are in the range from €8.00 to €11.99 per square
metre, with a clear emphasis on the segment below €9.99. The proportion of highpriced rents starting from €12.00 fell moderately compared with 2014.
late 19th century. Wiesbaden-Nordost is dominated by
the spa area with its spacious park landscapes. A large,
contiguous area of Wilhelminian-era villa development is
immersed in green spaces. Apartment buildings complement the building stocks towards the city centre. The median exclusive asking rent of €10.00 per square metre for
the area comprising Südost and Bierstadt [09], which includes the Dichterviertel area in the west and the Housing Area Hainerberg of the US armed forces in the east,
also places these districts in the high-priced segment. The
development is highly heterogeneous, including the villa
areas around Bierstadter Straße and Frankfurt Straße and
the largely Art Nouveau-period “Dichterviertel” as well as
supermarkets, offices and administrative buildings.
The most affordable median exclusive asking rent of
€8.62 per square metre was found in the area comprising Mainz-Kostheim and Mainz-Kastel [06] adjacent to
Wiesbaden
Hesse
9.24
8.18
6.51
73.0
74.8
68.0
2.0
2.1
3.0
2.0
2.5
2.7
1.8
1.5
1.3
2)
Germany
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Asking Rents in wiesbaden 2015
City area
Number of
rental offers
Apartment size,
average in m2
[01] Biebrich, Mainz-Amöneburg, Südost (West)
[02] Breckenheim, Medenbach, Auringen, Naurod, Heßloch,
Kloppenheim, Igstadt, Rambach
624
70.0
9.31
241
80.0
8.81
[03] Dotzheim, Frauenstein, Schierstein
322
71.1
9.26
[04] Erbenheim, Delkenheim, Nordenstadt
226
73.8
8.83
[05] Klarenthal, Rheingauviertel, Westend
903
70.0
9.00
[06] Mainz-Kostheim, Mainz-Kastel
246
67.5
8.62
[07]
Mitte
956
72.5
9.02
[08] Sonnenberg, Nordost
341
84.0
10.69
[09] Südost, Bierstadt
592
79.6
10.00
4,451
73.0
9.24
Wiesbaden average
the Rhine in the south of the city and some 10 kilometres
from the city centre. Both city districts have undergone
improvements since 2005 as part of the “Stadtumbau in
Hessen” (Urban Renewal in Hesse) subsidy programme.
They are also among the six city district of Mainz on the
right bank of the Rhine “administered in trust” by the City
of Wiesbaden since the Second World War. In mid-November 2015, the State of Hesse introduced the Miet
preisbremse (capping of rents on re-letting) in Wiesbaden,
excluding the districts of Igstadt, Medenbach, and Naurod.
Larger housing projects are planned over the coming years
on sites including the former Linde AG refrigeration plant
on the banks of the Rhine at Mainz-Kostheim, in MainzAmöneburg, where a new district will be developed on the
old staff car park of building materials manufacturer Dyckerhoff, and on city-owned land, as well as on the former
Söhnlein sparkling wine site in Schierstein, a site formerly
used by Deutsche Post on Welfenstraße, in the “Wohngebiet Hainweg” residential area in Nordenstadt, and on a
former plant nursery area in the Biebrich district. Additional potential sites will be created via the closure of the
US Army facilities at Mainz Kastel-Station by 2022 and
Amelia Earhart Hotel by 2023.
WIESBADEN IS SETTING TRENDS in PRESERVATION AND INTERNATIONAL SERVICE sector
The Hessian state capital Wiesbaden is one of Europe’s oldest spa towns. The heritage-protected overall structure of the city is one of the most extensive heritage areas in Germany. Wiesbaden’s 275,116 inhabitants make it the
second-largest city in Hesse. The city is well connected by road, rail, Frankfurt am Main international airport and
the Rhine and Main rivers. The economy of Wiesbaden is characterised by a broad mix of sectors, ranging from service companies, high-tech companies, IT companies, and a vibrant creative industry to the manufacturing industries. There is significant net migration to the city among young people. Median exclusive asking rents rose further
in each of the last two years in most districts of Wiesbaden.
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05
03
08
02
07
09
04
01
06
8.62 – 8.81
8.82 – 8.83
8.84 – 9.00
9.01 – 9.02
9.03 – 9.26
195
9.27 – 9.31
9.32 – 10.00
10.01 – 10.69
O U T LO O K
The German residential property market
going forward
The large influx of refugees will remain an issue in Germany for a number of years. The situation in global crisis
zones remains serious and could become even more acute
in future, causing the large refugee flows to grow further.
Housing markets in many towns and cities will continue
to be faced with significant challenges. Sustainable concepts that cover all eventualities are required to overcome
these challenges and shift the focus onto the opportunities of immigration for Germany. The current distribution
of asylum-seekers in accordance with the Königstein formula, for example, neither takes account of the availability of housing nor the social structures of refugees. One
concept to tackle this was provided by the empirica institute in its paper “Familien aufs Land – Teil 2” (Families in
the Country – Part 2). The paper fundamentally proposes
that, when distributing refugees, family structures must
be taken into account and more rural regions of Germany
must also benefit from the influx.
However, the solutions discussed at present are somewhat
static. A lowering of restrictions in planning and building
law should enable residential building projects to be completed more quickly. The German parliament passed the
“Law on measures in construction planning law to facilitate
the accommodation of refugees” in 2014. The law allows
exemptions from stipulations in existing development
plans to be granted more easily for the construction of
such accommodation, for example. Yet despite all efforts
to achieve closer connections between refugee families in
contracting regions, the construction of new apartments
in growing cities will be unavoidable. However, in the
short term, extensive promotion of new housing construction will not be able to make a major contribution towards
housing provision or the integration of refugees. Even if
planning permissions are currently being granted very efficiently, as city administrations claim, the construction
sector is working at close to full capacity, meaning that
the potential for expansion is limited. Furthermore, there
is insufficient building land available.
CITIES AS DRIVERS OF GROWTH
The refugee issue is just one factor that will bolster the importance of cities as places to live and economic centres
going forward. Cities will also be attractive to migrants
from elsewhere in Germany and abroad owing to their concentration of places of work and education as well as cultural and social amenities. Major cities in particular will
become anchor points of population settlement and hubs
for social trends. Thus, cities will become growth drivers
for the regions. The particular beneficiaries will, on the one
hand, be those municipalities that successfully structure
the demographic changes and best mitigate their negative
effects. On the other hand, it is essential for cities to offer
attractive conditions as a location, both for employers and
employees. This also requires a multi-faceted approach.
Research and educational institutions play an important
part, as do the availability of a workforce, the city’s infrastructure, and an attractive housing supply as well as soft
location factors, such as a cultural offerings and leisure
amenities, all of which can be integral to the recruitment
of highly qualified personnel.
196
O U T LO O K
TENANCY LAW AMENDMENTS – FURTHER
REgulations?
The city states of Berlin, Bremen, and Hamburg were
joined by more than 260 local authorities in the federal
states of Baden-Württemberg, Bavaria, Hesse, North
Rhine-Westphalia, Rhineland-Palatinate, and SchleswigHolstein in introducing the Mietpreisbremse (capping of
rents on re-letting) by the end of 2015. However, according to CBRE research, neither Bremen nor 207 of these local authorities have either a simple or qualified rent index.
Thus, there is a lack of transparency in many municipalities
as to the basis on which the local comparable rent for new
lettings is determined. Determining this using a number of
comparable residential lettings is difficult without a rental
survey. Introducing the Mietpreisbremse without amending the rent index classification makes it difficult to structure rents. The variation in court determinations to date
regarding the question “Is the rent index created using scientific criteria and at all permissible as a basis for the local
comparable rent?” is creating additional frustration.
The German Ministry of Justice has recently announced
a second package of reforms to amend tenancy law in
respect of the tenancy legislation already enacted. The
reforms will reduce the modernisation apportionment,
which allows modernisation costs to be apportioned to
the tenant, from 11 per cent to 8 per cent. A number of additional regulations relating to rental increases following modernisation works complete the proposals. However, there is little in the draft legislation regarding the
announced amendment of the rent index classification.
The planned expansion of the rent index consideration period from four to 10 years does not resolve the afore-mentioned ambiguities arising from the Mietpreisbremse and
judgements to date.
RESIDENTIAL INVESTMENT MARKET
The investment market appears unfazed by the increasing regulation of the rental housing market. In the attractive regional residential markets with relatively high rent
and property price growth, housing completions cannot
keep pace with the increase in the number of households.
Vacancy rates are also at historic lows. At the same time,
the economy is better than it has been in years. Unemployment figures are low and falling further, numbers of
employees subject to social security contributions are at
record levels and purchasing power is increasing thanks to
expanding sectors of the economy.
Against a background of continuously high demand from
institutional investors for apartment buildings in the major conurbations and strong price growth on core property, purchase price multipliers on non-core properties in
the top markets have also risen by a factor of one to three
times the annual rent. In addition, institutional investors
are showing an increasing trend towards investing in highgrowth, medium-sized centres in northern and eastern
Germany, such as Brunswick, Leipzig and Magdeburg. In
addition to opportunistic investors, such B and C locations
are also witnessing growing interest from long-term property investors, increasing the competition in these markets. In the residential markets with weaker socio-demographic and economic conditions, there is no significant
further growth in property prices.
Private owner-occupiers and investors are using the low
interest rate environment to build long-term investments.
Despite hardening yields, German residential property is
currently performing better in terms of risk-return comparison than alternative investment products. Compared with
Anglo-American markets, short-term property trading is
not a factor, at least among private investors in Germany.
With regard to institutional investors, in view of the medium-term, ultra-expansionary interest rate policy of the
ECB, the historically low cost of financing and returns of
less than 1 per cent on low-risk alternative investments in
the form of long-term government bonds, demand for residential portfolios will remain consistently high in 2016 despite the Mietpreisbremse and will significantly exceed
the supply of product appropriate for the market. In the
apartment buildings segment, divisibility into owner-occupier property and comparison with reinstatement costs
are becoming increasingly important in terms of pricing.
Development projects are also even higher on the agendas
of institutional investors than previously. It is, therefore,
essential to observe rental and price trends on a small
scale and based upon qualitative factors.
197
G LO S S A RY
Glossary and directory of sources
Active market vacancy rate:
Net migration:
The active market vacancy rate comprises vacant apartments in apartment buildings that are immediately available as well as vacant apartments not currently available
to let owing to defects but that might be capable of letting
in the medium term (<6 months).
Net migration represents the difference between incoming
and outgoing migration across the boundaries of a specific
area within a defined time frame.
Asking rent:
Employees subject to statutory social
security contributions:
The definition includes all living, dining, and bedrooms
as well as other separate rooms (e.g. developed basement
and attic rooms) with floor spaces of at least 6 square metre as well as separate kitchens regardless of floor space.
Bathrooms, toilets, corridors, and utility rooms are never
included. A living room with dining area, sleeping corner,
or kitchenette is considered to be one room. Therefore,
apartments without constructional separations of individual living areas (e.g. lofts or studios) have only one room.
Information is based on local data on employees subject to
social security contributions.
Purchasing power:
“Number of rooms” as referred to
in the Census:
The asking rent represents the net exclusive rent quoted
on apartments currently on the market. This means apartments that are available to let on the open market (e.g. on
property portals, web sites and in print media) and not
completed lettings.
Housing completions and permits:
Unless otherwise noted, details refer to completions and
permits for residential and non-residential constructions
not including existing buildings under renovation.
Purchasing power is defined as the net income (including recurring state benefits and assistance) of a person
or household that is available for consumption purposes
within a specific time frame.
Unemployment rate:
Median:
The value dividing a sample into two equal sets of values
with 50 per cent each of the sample being below and
above the median.
Details are based on the unemployment rate among
the entire civilian labour force.
198
SOURCES
Bavarian State Office for Statistics and Data Processing
Hamburg Airport GmbH
Berlin Tourismus & Kongress GmbH
Hanover Region, economic and employment policy
Braunschweig Zukunft GmbH
Hanseatic city of Lübeck – Department for Logistics, Statistics
and Elections
CBRE-empirica-vacancy index
Census 2011 – Building- and Housing Census
City of Augsburg – Department for Statistics and Urban Studies
City of Brunswick – Department for Urban Development and Statistics
City of Chemnitz – Office for Data Processing
City of Cologne – Office for Urban Development and Statistics
City of Dortmund – Business Development
City of Dortmund – Administrative Department for Statistics
City of Duisburg – Administrative Department for Elections,
European Affairs and Information Logistics
City of Essen – Office of Statistics, Urban Research and Elections
City of Frankfurt – Citizen Center, Office of Statistics and Elections
City of Frankfurt – Office of Housing
City of Frankfurt – Office for Urban Planning
City of Frankfurt – Press and Information Office
City of Freiburg – Office for Citizens’ Service and Data Processing
City of Freiburg – Office for Urban Planning
City of Freiburg – Office for Public Relations and Press
City of Halle – Department for Statistics and Elections
City of Halle – Department for Planning
City of Halle – Department for Residence Notices
City of Karlsruhe – Department for Urban Development
City of Leipzig – Office for Statistics and Elections
City of Mannheim – Municipal Statistics Office
City of Mannheim – Department IV, Planning, Building, Traffic and Sport
City of Mannheim – Office for Conversion
City of Nuremberg – Office of Urban Research and Statistics for
Nuremberg and Fürth
City of Nuremberg – Department for Economic Affairs
Hanseatic city of Rostock – Municipal office
Hanseatic city of Rostock – Office for Building, Department for Building
and Housing
Housing association “Freiheit” eG Halle
Institute for urban development, housing industry and building society
Market database of empirica-systeme
Michael Bauer Research GmbH
Northern Statistics Office
Senate Administration for Education, Science and Research, Berlin
Senate Administration for Urban Development and Environment, Berlin
Soziale Stadt und Land Entwicklungsgesellschaft mbH
State capital Dresden – Department for Urban Development
State capital Dresden – Economic Development Office
State capital Dresden – Municipal Statistics Office
State capital Düsseldorf – Office for Statistics and Elections
State capital Erfurt – Department for Personnel and Organization,
Statistics and Elections
State capital Hanover – Authority of the mayor
State capital Hanover – Business Development
State capital Hanover – Department for Personnel and Organization
State capital Hanover – Department for Building
State capital Hanover – Office for Culture
State capital Kiel – Office for Economy
State capital Kiel – Citizen Center, Office for Public Order
State capital Magdeburg – Statistics Office
State capital Mainz – Department for Urban Development,
Statistics and Elections
State capital Mainz – Press Office, Communication
City of Nuremberg – Department for Building and Planning
State capital Munich – Department of Urban Planning and
Building Regulation
City of Rostock – Integrated urban development concept (2nd Update)
State capital Munich – Department of Labour and Economic
Cologne Chamber of Commerce and Industry
State capital Munich – Statistics Office
Deutsche Messe
State capital Stuttgart – Statistics Office
Economic Development Corporation, City of Chemnitz
Erfurt Tourism & Marketing Board
State capital Wiesbaden – Office of Strategic Governance,
City Research and Statistics
Essen Economic Development Agency
State capital Wiesbaden – Press Office
Federal Employment Agency
Statistics Office for Berlin-Brandenburg
Federal Institute for Research on Building, Urban Affairs and
Spatial Development (BBSR)
Statistics Office of Baden-Württemberg
Federal Ministry for the Environment, Nature Conservation,
Building and Nuclear Safety
Statistics Office of Lower Saxony
Federal Statistical Office
Free and Hanseatic City of Hamburg, State Ministry for Urban
Development and the Environment
Statistics Office of Bremen
Statistics Office of Saxony-Anhalt
Statistics Office of Saxony
WFB Bremen Business Development
Freiburg Wirtschaft Touristik und Messe GmbH
199
M A ST H E A D
Masthead
publisher:
Vonovia SE
Philippstraße 3, 44803 Bochum
Tel.: +49 (0) 234 314-0
Fax: +49 (0) 234 314-1314
CBRE GmbH
Hausvogteiplatz 10, 10117 Berlin
Tel.: +49 (0) 30 726154-0
Fax: +49 (0) 30 726154-100
Market data:
Dr. Henrik Baumunk, Kristina Rüther, Michael Schlatterer MRICS
Residential Valuation, CBRE GmbH
editorial department:
Gabriele Bobka, Roland Stimpel
Graphics/Layout:
Storkan Informationsdesign
Project management:
Kristina Rüther, CBRE GmbH
responsible under german press law:
Dr. Henrik Baumunk, CBRE GmbH
Inger Giwer-Gaul, Vonovia SE
Disclaimer Vonovia/CBRE
Information herein has been obtained from sources which are accessible to the public,
(or, in certain cases, in exchange for a fee) and believed reliable. While we do not doubt its
accuracy, we have not verified each piece of information and cannot make any guarantees
about it, barring willful intent and gross negligence. It is your responsibility to independently
confirm its accuracy and completeness.
The information contained in this market report may not be used, reproduced or published
without prior written permission of Vonovia and CBRE.
200

Housing Market Report Germany 2016

Transcription

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