Our analysis of the residential property markets in eight major German cities reveals a slight slowdown in rental growth during the first six months of this year. With the exception of Hamburg (-0.5%) however, rents have increased further in the other cities over the course of the year so far, with a rise of 1% recorded in Berlin, 2% in Munich and up to 5% in Leipzig.
Purchase prices for condominium apartments have, on average, seen slightly higher growth rates in the cities investigated. By the mid-point of the year, the highest rise was observed in Stuttgart, with around 11%. Rises of over 4% were observed in Cologne, Düsseldorf and Berlin.
The investment market recorded a new record level in the first half of 2015, with €17.5 billion invested in residential property and portfolios. Berlin remained by far the most important regional transaction market in Germany.