Investment locations Germany 2017
Residential – rents and yields
Residential properties can currently be found in several investment profiles of renowned investors. This
renaissance is having an effect on local markets: increasing diversity, falling yields and further increasing rent
prices in urban centres is leading to a high level of appeal for investors. Demand continues to outstrip supply,
price effects are resulting from shortages, base price increases and the rising expectation of tenants.
Kiel
7.84
9.94
5.1
Rostock
7.02
10.03
4.8
Lübeck
7.66
9.83
5.2
Schwerin
6.89
8.45
5.8
Hamburg
Lüneburg
11.23
15.29
3.8
8.46
10.06
5.0
Oldenburg
7.75
10.00
4.5
Bremen
8.87
11.33
5.0
9.88
14.03
4.0
Recklinghausen
6.57
10.50
5.3
5.85
7.53
6.8
Oberhausen
6.48
8.29
5.5
Dusseldorf
10.26
15.50
4.1
5.71
7.70
6.7
8.13
9.76
5.2
Neuss
Aachen
8.60
13.00
4.5
Bonn
9.65
11.63
4.3
Wiesbaden
Mainz
10.35
12.50
4.4
Trier
6.78
8.84
5.4
13.09
16.97
4.0
6.86
12.00
4.8
10.19
5.1
10.29
13.58
4.3
Karlsruhe
9.06
10.88
4.4
mid-range
residential area in €/m2 *
8.11
very good residential area in €/m2 *
10.42
1)
gross
rent yield in % 5.1
Coburg
8.55
10.20
4.3
Bamberg
9.90
12.99
4.4
Würzburg
10.25
11.81
4.8
Erlangen
Fürth
7.24
8.87
4.6
Heidelberg
Average rental prices and gross rent yields
7.04
8.71
5.6
9.05
11.70
5.0
Mannheim
7.45
9.14
5.1
8.51
10.06
4.5
Fulda
8.05
9.95
Hanau 5.2
9.65
12.10
4.7
Ludwigshafen
Jena
7.05
8.37
5.0
Nuremberg
8.97
11.49
4.3
Heilbronn
8.73
10.71
5.4
Regensburg
10.43
13.14
4.2
Stuttgart
11.84
14.83
4.1
Dresden
7.20
10.15
4.4
Weimar
7.74
9.59
5.1
7.42
9.53
5.4
Frankfurt/M.
Offenbach/M.
Aschaffenburg
Darmstadt
8.17
8.81
10.87
4.5
6.51
8.04
6.7
Kaiserslautern
Saarbrücken
Leipzig
Kassel
8.53
10.45
5.4
Koblenz
8.27
10.69
5.2
5.86
7.21
7.9
7.47
9.19
5.3
Gießen
7.21
9.33
5.0
Cottbus
Erfurt
9.28
11.46
4.3
7.64
9.16
5.0
Magdeburg
8.62
10.91
5.0
Siegen
6.59
8.55
6.7
9.41
11.59
4.7
5.73
7.37
5.4
5.85
6.87
6.9
6.41
7.79
6.3
7.25
8.93
5.0
10.62
13.75
4.2
Göttingen
6.14
7.77
5.9
Wuppertal
Leverkusen
Cologne
Ratingen
5.3
6.3
7.02
9.14
5.2
Hamm 6.90
Dortmund 8.97
Remscheid
Solingen
Dusseldorf
Neuss
Paderborn
6.96
8.58
5.2
Essen
Ratingen
Krefeld
6.22
12.50
5.3
Gütersloh
6.04
7.00
6.9
Bochum
Duisburg
Mönchengladbach
5.80
6.92
8.0
7.64
9.80
4.9
5.97
7.60
5.3
Bielefeld
6.00
Detmold 7.59
Potsdam
Wolfsburg
Braunschweig
Hildesheim
6.78
8.70
5.2
Münster
Herne
6.13
8.42
6.6
Hanover
9.70
12.10
4.3
5.59
7.05
6.6
Berlin
8.47
11.06
4.9
7.97
10.64
4.5
7.25
9.47
5.0 Osnabrück
Ingolstadt
8.94
10.63
4.4
Augsburg
10.82
13.47
4.2
9.65
12.01
4.2
* €/m² living area calculated monthly,
applicable to approx. 3 rooms,
approx. 60–75 m²
1)
Gross rent yield:
Gross rent yield is the ratio of annual
rental income to the buying price. Net
rent yield, on the other hand, also takes
into account the additional costs associated
with buying such as the administrative
and maintenance costs, which the owner
cannot pass on to the tenant as they can
other operating costs.
16.10
21.20
3.2
Munich
Freiburg
in €/m2
ø rental price mid-range residential area Germany
ø rental price mid-range residential area top 7 locations
ø rental price mid-range residential area excl. top 7 locations
ø rental price very good residential area Germany
ø rental price very good residential area top 7 locations
ø rental price very good residential area excl. top 7 locations
1st quarter 2016
1st quarter 2017
Change
7.82
11.16
7.48
9.70
14.24
9.25
8.11
11.86
7.75
10.42
15.94
9.90
3.71 %
6.25 %
3.61 %
7.42 %
11.94 %
7.03 %
As of: 1st quarter 2017
Contact: [email protected]
Source: Catella Research 2017
Yield-risk-profile for residential markets in 2017
Investment universe
Gross rent yield in %
8.0 %
Herne
Cottbus
7.0 %
Hamm
Oberhausen
Duisburg
Remscheid
Kaiserslautern
Solingen
6.0 %
Gütersloh
Braunschweig
Darmstadt
Hanover
Dusseldorf
Berlin
Frankfurt
Freiburg
Stuttgart
Hamburg
4.0 %
Schwerin
Saarbrücken
Fulda
Mönchengladbach
Hanau
Gießen
Ludwigshafen
Paderborn
Essen
Kiel
Lübeck
Bielefeld Göttingen
Erfurt
Aschaffen­burg
Bremen
Neuss
Offenbach
Lüneburg
Koblenz Leverkusen
Osnabrück
Weimar
Rostock Würzburg
Leipzig
Wolfsburg
Potsdam
Aachen
Fürth
Jena
Oldenburg
Karlsruhe
Nuremberg
Ingolstadt
Regensburg
Cologne
Mainz
Bonn
Erlangen Wiesbaden
Münster
Heidelberg
Augsburg
Mannheim
Dresden
Detmold
Wuppertal
Kassel
Dortmund
Hildesheim
Ratingen
5.0 %
Siegen
Bochum
Recklinghausen
Krefeld
Magdeburg
Coburg
Heilbronn
Trier
Bamberg
Munich
3.0 %
10
15
20
Residential market top 7 locations
Top 25 locations according to overall score in the residential market rankings
Remaining 48 locations according to overall score performance in the residential market rankings
Source: Catella Research 2017
25
30
35
Risk factor based on Catella Research Residential Market Ranking Germany 2017. In order to classify the rankings, the risk factors
have been divided into the following indicators: socioeconomic data, structural risk, liquidity risk and location potential. The factors
have been organised into quantiles according to the respective value of the percentage range and projected onto a numeric scale
between 0 and 100. In order to determine the risk factors, the scoring values are transformed using an inverse function.
40
Risk factor