The German Property Market

The German Property Market

41th UIPI Congress, ViennaRA Dr. Kai H. WarneckeHaus & Grund Deutschland

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German real estate sector

• Net Asset Value: approx. 9.000.000.000.000 €

• 22% of all German enterprises

• 10% of all employed persons

• 7.5% of the national business volume (turnover)

• Annual gross value added: approx. 389.5 bill. €

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Private owners in the German real estate sector

Owner occupiers in international comparison

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Private owners in the German real estate sector

• Private owners represent approx. 77 % of

German dwelling stock

• Private landlords and owner-occupiers invest

more than 73 billion Euro annually

• This is about 36 % of the turnover of the

construction sector with it’s 2.2 million

employees.

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Perspectives (I.): households (number and size)

Forecast: 2030: 41,1 households / 43,4 % single

Perspectives (II.): population

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Consequences (I.): rents

~ -4½ %

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Consequences (II.): empty apartments

Challenges (I.): city development

• Shrinking population (- 13,5 mil. until 2050)• Re-development of inner city quarters• Involvement of private property owners• Subsidies by BMVBS / Launch of KiQ

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Challenges (II.): conversions for seniors

• Raising number of seniors• 2005: 32 p. retired per 100 p. labour force• 2030: 52 p. retired per 100 p. labour force• need for conversion for seniors• 2011: only 1% of all units are suitable for seniors

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Haus & Grund clubs and KfW run study projects

Challenges (III.): energetic modernisation

• Raising prices for gas /oil• Renewable energy are enforced by law (4 level)• Haus & Grund lobbies• Great success: Change of tenancy law

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