The German economy is stable. Low unemployment rate and rising wages have a positive influence on German purchasing power. Analysts of the leading German banks expect that in 2018, the growth of the economy will exceed 2%. DZ-Bank forecasts 2.2% of GDP, Deutsche Bank – 2.3%.
Germany is probably the first direction, which is considered by investors who want to make money on real estate. In 2017, prices four housing continued to rise by 3% in the countryside and by 7-9% in the cities. The cost of apartments in Germany increased by 70% for the last ten years. The price for land in medium-sized cities rose by 10-12%. The cheapest estates are in Dortmund and Essex – €1790 per square meter. The most expensive apartments are in Munich (€7190), Berlin (€4110) and Frankfurt (€4990).
The cost of renting residential property is increasing in all cities of Germany. Every year it goes up to 2-4%. In 2017, the rental price increased by 3.5%. In Cologne a rent “square” per month is about €12-16; in Berlin, Dusseldorf, and Stuttgart – €12-18; in Hamburg and Frankfurt – €14-20; in Munich rent reaches €18-24.
Germany is one of a few countries where foreigners actively invest in commercial properties. The most popular are shops, offices, hotels, warehouses. In 2017, the cost of renting offices increased by 2.6%. An average price In Frankfurt is €35,5 per sq.m. and in Stuttgart – €19,7.
Large cities are open for entry of international retailers, as well as for experiments with new retail concepts. Renting retail property costs on average €298,5 with the highest price in Munich €345 and in the capital €310.
Tourists from all over the world come to Germany. The most popular resort areas are the Islands of the Baltic and North sea, Bavarian forests and Alps. However, Berlin remains the top visited city. Thus, one day in the hotel costs around €90.
The increase in online sales supports demand for warehouse space. The cost per square meter varies from €4 to €6. About a billion euros was invested in homes for the old in 2017. The population is aging, the need for nursing homes is growing. In the next decade, the government is going to invest around ten billion euros in this field.