Germany: continued growth in demand for housing
According to a new study, demand for German housing has greatly increased since last year.
Demand for German housing has grown strongly since 2019, and the need for residential properties is creeping further into the surrounding regions of big cities, says Housing Investor Europe. The most popular areas are within commuting distance of Munich and Berlin.
Bouwfonds Property Development (BPD) says the current interest targets Germany’s major hubs: Berlin, Frankfurt, Cologne, Düsseldorf, Hamburg, Stuttgart, and Munich. Here, new development will not be able to keep up with demand for living space in the foreseeable future and, as a result, demand in adjacent regions with good infrastructure is on the rise.
The study shows that construction is not able to keep pace in the immediate surroundings of the country’s main cities, which is driving residential construction further out.
Alexander Heinzmann, BPD Managing Director in Germany, highlights several requirements for this growth. “In order to avoid urban sprawl and more traffic, we urgently need to focus larger developments in the surrounding centres with well-thought-out traffic and mobility concepts that are tailored to the needs of the population", he explains.
With the German capital and independent city-state of Berlin at its centre, Brandenburg is one area where this trend is especially prominent.