Germany Real Estate Market Insights Forecasts to 2033

• The Germany Real Estate Market Size was valued at USD 624.2 Million in 2023.
• The Market Size is Growing at a CAGR of 2.12% from 2023 to 2033
• The Germany Real Estate Market Size is Expected to Reach USD 770.2 Million by 2033

The Germany Real Estate Market is Anticipated to Exceed USD 770.2 Million by 2033, growing at a CAGR of 2.12% from 2023 to 2033.

Market Overview

The real estate industry involves buying and selling residential properties like houses and apartments and commercial properties like office buildings and industrial properties. In addition to property sales, this market also encompasses rentals and the worth of land. The housing market includes both residential and commercial properties. Real estate is defined as tangible property that consists of land and any structures or improvements permanently affixed to it, whether naturally occurring or constructed by humans. The housing market includes buying, selling, and renting properties, with residential rentals categorized into apartments and houses. In Germany, shopping center investments had a prime yield of 5.5 percent in 2023, exceeding that of any other property type. Yield is a metric that indicates how profitable an investment is by displaying the annual rental income relative to the property's price. Increased returns indicate increased potential for profit. For instance, rental apartments had the lowest prime yield but were the favored property type among investors. Businesses were also interested in acquiring offices and logistics real estate. In June 2022, Prologis Inc., a leader in worldwide logistics real estate, revealed the acquisition of a group of 11 properties in Germany. The company's expansion strategy is supported by targeted markets in Rhine-Ruhr, Berlin, Rhine-Main, Rhine-Neckar, Hannover, Ulm, and Regensburg with buildings.

Report Coverage

This research report categorizes the market for the Germany real estate market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Germany real estate market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Germany real estate market.

Driving Factors

The increasing population in the area is causing a rise in the need for housing and infrastructure, leading to an increase in the real estate market. With the increasing population, there is a growing need for infrastructure like housing, offices, and commercial spaces. This poses a major chance for developers and investors in the real estate industry. Identifying these population changes allows those involved in the real estate sector to make educated choices on investment locations, the kinds of properties to construct, and how to customize offerings to suit the particular requirements of the community.

Restraining Factors

The main factors limiting the growth of the real estate market are government policies, tax structures, zoning rules, and economic uncertainties like recessions.

Market Segmentation

The Germany real estate market share is classified into property and type.

• The residential segment is expected to hold the largest market share through the forecast period.   

The Germany real estate market is segmented by property into residential, commercial, industrial, and land. Among them, the residential segment is expected to hold the largest market share through the forecast period. The millennials are primarily responsible for the growth, as they have shown a strong preference for owning homes in recent times. As an example, based on Apartment List's Homeownership report, the percentage of millennials who own homes rose from 40% in 2020 to 47.9% in 2021.

• The rental segment dominates the market with the largest market share over the predicted period.

The Germany real estate market is segmented by type into sales, rental, and lease. Among them, the rental segment dominates the market with the largest market share over the predicted period. This is due to increasing home prices in nations, resulting in more renters and benefiting the segment's growth. In a blog posted by Mansion Global, it was reported that approximately 60% of properties in Germany were being rented out in 2021, making it a nation of renters.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Germany real estate market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Savills
• JLL
• Cushman & Wakefield
• STRABAG
• BAUER Group
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In November 2022, NREP, a city-based investor managing USD 19 billion worth of assets, reveals the ongoing expansion of its influence in Northern European nations after making its initial real estate investment in Germany and forming a specialized team of eight staff members.

Market Segment

This study forecasts revenue at Germany, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the Germany Real Estate Market based on the below-mentioned segments:

Germany Real Estate Market, By Property

• Residential
• Commercial
• Industrial
• Land

Germany Real Estate Market, By Type

• Sales
• Rental
• Lease