Housing Market

Report Germany
2016
Dear Sir/Madam,
The first Vonovia market report in conjunction with CBRE
aims to give you a precise overview of the property market in
Germany by analysing 29 of the largest cities and their housing
markets in detail. In addition to the internationally renowned
top seven cities, the report also presents some of the growth
markets that will be of interest to investors in previously less
intensively researched major cities in Germany.

The report also tackles current issues in politics and society

concerning demographic changes and the increasing migra- Rolf Buch

tion into cities as well as the almost comprehensive shortfalls

in new housing construction. The only moderately perceptible
effects of the Mietpreisbremse (capping of rents on re-letting)
and the strong influx of refugees will be additional core themes
for the residential sector in 2016.

We are convinced that sound market knowledge is indispen-

sable for making financially sustainable investment decisions.
That is why the report is based not only on extensive quanti­
tative analysis of current market data and socio-economic Dr. Henrik Baumunk

conditions, but also on a representation of local peculiarities

and, in some cases, unique trends in the respective markets.

A summary overview of the attractiveness and potential for

development in the various cities demonstrates fundamental
differences between the markets. The following 29 detailed city
profiles are imbued with our specific knowledge of submarkets,
economic structures, cultural features and guiding principles in
the residential sector. Numerous graphics and maps illustrate
vivid trends and structures. The report concludes with an
outlook on the key developments for the residential property
market over the coming years, such as the announced tenancy
law amendments.

We hope you enjoy reading the report.

Rolf Buch Dr. Henrik Baumunk

CEO Managing Director
Vonovia SE CBRE GmbH

001
CO N T E N TS

Contents

[004]
Introducing the project partners:
Vonovia and CBRE
For the first time, Vonovia and CBRE present a joint
housing market report on 29 selected cities in Germany.
A brief look at the project partners.
[006]
The German residential property
market in the political and public
spotlight
At the beginning of 2016, the German residential property
market was dominated by high levels of migration into
(major) cities, the adaptation of legal frameworks and
the large influx of refugees. All of these factors pose
new challenges to local housing markets.

[008]
City comparison: An extensive
overview of the 29 markets in
Germany
Analysis of similar characteristics of the 29 cities
studied and classification of the property markets
into five groups respective of their socio-economic
and housing-market-specific features.

002
 CO N T E N TS

[016] [196]
City profiles: Detailed analysis The German residential property
of the 29 cities market going forward
The 29 cities in the spotlight. Extensive analysis of current What is the current state of the German residential
trends and developments in the cities with regard to demo- property market against the background of current devel-
graphics, socio-economics and the local housing market. opments? What effects will the large influx of refugees
have on housing markets? To what extent are general legal
016 Augsburg frameworks changing and what changes can be seen in
022 Berlin the investment market?
030 Brunswick
036 Bremen
042 Chemnitz
048 Cologne
054
060
Dortmund
Dresden
[198]
066 Duisburg Glossary and directory of sources
072 Dusseldorf
078 Erfurt
084 Essen
090 Frankfurt am Main
096 Freiburg
102 Halle (Saale)
110 Hamburg
116 Hanover
122 Karlsruhe
128 Kiel
134 Leipzig
140 Lübeck
146 Magdeburg
152 Mainz
158 Mannheim
164 Munich
172 Nuremberg
178 Rostock
184 Stuttgart
190 Wiesbaden

003
P R OJ EC T PA RT N E R S
Introducing the project partners:
Vonovia and CBRE
Vonovia
Vonovia SE is one of the leading housing companies in Ger-
many. The company is listed on the DAX 30 and currently
manages approximately 357,000 apartments in attractive
towns, cities, and regions throughout Germany. As a mod-
ern service provider, Vonovia’s business revolves around
customer orientation and tenant satisfaction. Offering af-
fordable and attractive homes with a good quality of living
is a prerequisite for the sustainable growth of our company.
Vonovia apartments are predominantly located in cohe-
sive developments distributed across 760 locations in Ger-
many. All locations are served by property managers and
an in-house network of tradespeople to respond to tenants’
concerns. This close relationship with customers ensures a
rapid and reliable service tailored to tenants’ requirements.
Vonovia invests sustainably in the maintenance, moderni-
sation and conversion of its buildings in accordance with
their age. The company also collaborates with local social
and cultural projects that enrich neighbourhoods and com-
munity life. www.vonovia.de
Vonovia in numbers
Apartments: Apartment size:
ca. 357,000 62 m2  on average
004
CBRE
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and
S&P 500 company headquartered in Los Angeles, is the
world’s largest commercial real estate services and invest-
ment firm (in terms of 2015 revenue). The Company has
more than 70,000 employees (excluding affiliates), and
serves real estate owners, investors and occupiers through
more than 400 offices (excluding affiliates) worldwide.
CBRE offers strategic advice and execution for property
sales and leasing; corporate services; property, facilities
and project management; mortgage banking; appraisal and
valuation; development services; investment management;
and research and consulting. CBRE Residential Valuation
Germany is a market leader in residential property valua-
tion. In 2014, around 850,000 residential units, with a
volume of approximately €48 billion were appraised.
Please visit our website at www.cbre.com
Employees: Investment volume 2016:
ca. 6,400 €500 m
 P R OJ EC T PA RT N E R S

THe 30 LarGesT VonoVia LoCaTions

norTHern GermanY
While Hamburg remains unchallenged as a top-seven major
city with further prospects for growth, Bremen has also laid
successful foundations for the future with its transition from berLin
shipbuilding to the growth sectors of aerospace engineering The most populous city in Germany
Kiel
and biotechnology. The extent to which Kiel will manage to has transformed itself into a leading
do this as the northernmost major city in Germany will depend European location for the cultural and
on developments in the service sector and its positioning as creative industries. Tourism is one of
the gateway to northeastern Europe. the largest sources of revenue and
employment in the German capital.
Hamburg Domestic and foreign capital is particu-
rHine-ruHr reGion larly being invested in the real estate
With around 10 million inhabitants, this market, which is currently witnessing
is one of the largest urban agglomera- Bremen buoyant development activity.
tions in Europe. In Cologne, Dussel-
dorf, Dortmund and Essen, the region
comprises four of the 10 largest cities
in Germany. The transformation from Berlin
Hanover
industry to the education, research and
service sectors is lending fresh impetus Osnabrück Brunswick
to all markets.
Bielefeld
HanoVer-bruns WiCK
Gelsenkirchen Herne The location forms part of the Hanover-
Essen Brunswick-Göttingen-Wolfsburg met-
Dortmund
Duisburg ropolitan region with a population of
Bochum some 4 million people. With an inter-
Dusseldorf national exhibition centre, its location Dresden
as a central European transport hub
Cologne
and a broad sector mix (automotive
Aachen and mechanical engineering, logistics,
Bonn
energy and research), the region is
well-equipped for the future.

Wiesbaden Frankfurt am Main

dresden
Mainz
Darmstadt Dresden represents Vonovia’s larg-
est single location in terms of housing
stock with almost 38,000 apartments.
FranKFurT/rHine-main Mannheim Nuremberg Along with Leipzig, the city has regis-
The metropolitan region (more than
tered above-average population
5.5 million inhabitants) comprising
growth, which is attributable to the
Frankfurt, Wiesbaden, Mainz and Darm-
Karlsruhe healthy employment market and good
stadt enjoys an international reputation
quality of life.
as a financial centre, trade fair location Stuttgart
and transport hub and is one of the Heidenheim
largest economic regions in Germany.

Munich
Freiburg souTHern GermanY
Baden-Württemberg and Bavaria are
the leading federal states in Germany
in terms of population growth. The
region is characterised by both high
income levels and living costs.

Basis: Market value as of 31.12.2015

005
INTRODUCTION
The German residential property market in
the political and public spotlight
It is incredible but true that, until only a few years ago, the
German residential property market led a niche existence
in the public consciousness. With a small number of ex-
ceptions, it was not difficult for tenants to find suitable
housing at reasonable rents in most German cities. Fol-
lowing negative experiences with state-subsidised, new-
build satellite towns and poorly refurbished apartments
in the federal states that emerged from the former East
Germany, acquiring residential property was no longer
a consideration for many private investors. Only a few
wealthy families invested locally in apartments or apart-
ment buildings. The government had completely with-
drawn from subsidising social housing construction, and
financially weakened cities and local authorities, as well
as industrial companies, took particular advantage of the
unbridled lending to investors between 2002 and 2007 to
restructure by disposing of residential portfolios. Compa-
nies holding residential portfolios were still predominantly
viewed by investors as low-margin, management-inten-
sive, and static businesses.
In recent years, this landscape has changed radically. Pos-
itive fundamental economic data led to foreign investors
in particular rediscovering the German residential prop-
erty market from 2011. The number and value of listed
residential landlords rose constantly. Strong rises in rents
and property prices, particularly in the economically at-
tractive and sought-after areas, were suddenly headline
news, leading politicians to place the Mietpreisbremse
(capping of rents on re-letting) on their agendas. However,
the perennial talk of a property bubble in 2013/14 cur-
rently seems to have abated somewhat. Private owner-
occupiers and investors from Germany and abroad are
taking advantage of the favourable financing conditions to
invest in “concrete gold”.
006
At the beginning of 2016, the German residential market
was dominated by three issues:
l Increased migration from within Germany and abroad
into cities and its effect on local housing markets
l The adaptation of legal frameworks resulting from
changes in the local markets
l The large influx of refugees from global crisis zones.
HIGH IMMIGRATION, LOW SUPPLY
Germany registered almost constant declines in net mi-
gration from 2001 and even saw negative net figures in
2008 and 2009. Since then, however, immigration has
risen sharply. According to the Federal Statistical Office,
net migration between 2010 and 2013 totalled 1.2 mil-
lion people. In 2014 alone, there was positive net migra-
tion of around 550,000 people, the highest figure since
1993. This compares with a total of approx. 216,000 hous-
ing completions in Germany in 2014 plus refurbishment
of around 29,000 existing residential units. When this is
contrasted with around 159,000 units in 2009, the lowest
completion volume since German reunification, it is pos-
sible to speak of a recovery in housebuilding. However, fol-
lowing housing completions of approx. 215,000 units in
2013, the growth in 2014 was rather modest.
Overall, the comparison illustrates the growing discrep-
ancy between supply and demand. However, the situation
varies widely at regional level. German cities in particu-
lar are faced with major challenges. In addition to signifi-
cant immigration from abroad, they are also exposed to
high intra-regional migration flows. Until only a few years
ago, cities were suffering major population losses in favour
of their rural hinterlands. Now, the situation has changed
radically. The “return to the cities”, and particularly city
centres, has been a pronounced trend for a number of
years. In addition to young educational migrants, increas-
ing numbers of families and single-person households are
being attracted by the benefits of city living, such as short
travel times, good local amenities and a broad cultural of-
ferings. In contrast with previous eras, they are also often
 INTRODUCTION

remaining in the city for the long term. Besides the conse- CHALLENGE OF REFUGEE INFLOWS
quent positive effects, such as increased tax revenues, this The third major issue dominating the residential property
is also creating wide-reaching challenges for cities. Adapt- market at the end of 2015 was the large influx of refugees.
ing the transport and educational infrastructures to en- The high number of refugees arriving in Germany from
larged populations are just a couple of issues to tackle in crisis and war zones also poses extensive challenges for
this context. There are particular challenges at present for the housing market. Numerous municipalities are desper-
urban residential markets, which are witnessing significant ately seeking accommodation for refugees and, in view of
increases in demand for housing. The increase in comple- the fact that residential markets are already strained, the
tion volumes registered in many cities in recent years is housing shortage is expected to become even more acute.
insufficient to keep pace with the high levels of migration. However, the actual housing requirements generated by
Consequently, the discrepancy between supply and de- the influx of refugees into residential markets is difficult to
mand has produced housing market shortages in numer- quantify owing to a lack of reliable figures. The nationwide
ous cities and has ultimately resulted in rising rents and projections were repeatedly corrected upwards through-
property prices (some of them significant) in many places. out 2015. According to official data, the 1 million mark had
been reached by the end of 2015.
CHANGING LEGAL FRAMEWORKS
The most recent developments also resulted in effects In view of the socio-political importance of the residential
on the legal framework regulating the housing market in property market, which has come firmly under the spot-
2014/2015. In autumn 2014, the German cabinet passed light, the present residential market report seeks to con-
draft legislation to curtail rental increases. The resulting tribute towards achieving greater transparency. The report
Mietpreisbremse (capping of rents on re-letting) came illustrates the diversity of prevailing trends in the 29 largest
into effect in June 2015, empowering federal states to en- local residential markets in Germany and discusses how
act appropriate regulations. The new regulations mean cities are responding to the current multi-faceted issues.
that asking rents on re-lettings of existing property must
be no higher than 10 per cent above the level of local
comparable rents in areas with strained housing markets.
However, there are a number of exemption clauses. New-
build apartments, for example, are completely exempt
from the Mietpreisbremse. In addition, for the time being,
§ 559 paras. 1 to 3 of the German Civil Code (BGB), which
apply to rental increases on modernised property, allow
11 per cent of expenditure on the property to be recovered
from the tenant each year. The small furnished apartment
market segment is also outside of the Mietpreisbremse.
According to research by CBRE, in addition to Bremen,
Berlin, and Hamburg, a further 265 local authorities (inde-
pendent cities and municipalities) in Baden-Württemberg,
Bavaria, Hesse, North Rhine-Westphalia, Rhineland-Palat-
inate, and Schleswig-Holstein introduced the Mietpreis-
bremse by the end of 2015.

007
C I T Y CO M PA R I S O N
City comparison: An extensive overview
of 29 markets in Germany
Those who make investments reach their decisions based
upon extensive and robust analysis. While the residential
sector is long established in many ways, there are rapid
developments afoot. For investors seeking to invest their
capital in property, such current developments in the resi-
dential property market demand a detailed examination
of individual locations and an in-depth analysis of markets
and their prospects.
The market report focuses on larger German cities with
more than 200,000 inhabitants. These locations in partic-
ular are currently benefiting from a series of parallel devel-
opments, such as the strong influx of young people (from
within Germany and abroad), the population growth due to
refugees, the prospering economy, the revitalisation of city
centres, the expansion of the education sector, numerous
new-build projects, and civic engagement.
We start on the following pages with a general overview of
the cities. This includes the formulation of various types of
markets and an analysis of the features and developments
exhibited by the cities via relevant indicators for the hous-
ing market. This is followed by extensive profiles on the
various developments and the afore-mentioned trends in
the individual cities.
008
SELECTION OF THE 29 CITIES
The present report investigates all German cities with
more than 200,000 inhabitants (as of 31.12.2014). The
one exception is North Rhine-Westphalia. To avoid the
dominance of this federal state (there were 15 cities with
more than 200,000 inhabitants in this one state alone as
of 31.12.2014), the report only includes those cities with
a population above 400,000. However, with five cities in
the report, North Rhine-Westphalia remains a geographi-
cal focus of the markets investigated. The largest of the
cities studied is Berlin (approx. 3.47 million inhabitants),
followed by Hamburg, Munich, and Cologne, all of which
have over a million inhabitants. The smallest cities in terms
of population are Rostock, Erfurt, and Mainz with only
slightly more than 200,000 inhabitants. The cities are dis-
tributed geographically across 14 of the 16 federal states.
Only Saarland and Brandenburg are not represented in the
report as neither state contains a city with a population of
more than 200,000.
Besides Berlin, Bremen, and Hamburg, the remaining
26 markets are distributed across the federal states as
follows:
l Baden-Württemberg: Freiburg, Karlsruhe,
Mannheim, Stuttgart
l Bavaria: Augsburg, Munich, Nuremberg
l Hesse: Frankfurt am Main, Wiesbaden
l Mecklenburg-Western Pomerania: Rostock
l Lower Saxony: Bruns­wick, Hanover
l North Rhine-Westphalia: Cologne, Dortmund,
Dusseldorf, Duisburg, Essen
l Rhineland Palatinate: Mainz
l Saxony: Chemnitz, Dresden, Leipzig
l Saxony-Anhalt: Halle (Saale), Magdeburg
l Schleswig-Holstein: Kiel, Lübeck
l Thuringia: Erfurt
 C I T Y CO M PA R I S O N

The 29 cities analysed according to population

200,000 to 249,999

250,000 to 499,999
Kiel
500,000 to 999,999 Rostock

Lübeck
1 million and up
Hamburg

Bremen

Berlin
Hanover Bruns­wick

Magdeburg

Essen
Dortmund Halle
Duisburg
Leipzig
Dusseldorf Dresden
Erfurt
Cologne Chemnitz

Wiesbaden Frankfurt am Main

Mainz

Mannheim Nuremberg

Karlsruhe

Stuttgart

Augsburg
Munich
Freiburg

Population as of 31.12.2014. Source: Federal Statistics Office

009
C I T Y CO M PA R I S O N
Top markets, good performers,
trend reversers & Co.
The cities studied differ not only in their size and geograph-
ical situation but also in their socio-demographic and so-
cio-economic structures and trends. There are also signifi-
cant differences in their respective housing markets. Each
of the 29 cities analysed has its own, and in some cases
unique, characteristics. These shape the markets as much
as the similarities, which are equally identifiable. Funda-
mentally, the 29 cities studied can be classified into the
following five groups with respect to their socio-economic
and housing-market-specific features:
1. Top markets
2. “Dynamic cities”
3. Traditionally sought-after, average-sized markets
4. “Good performers”
5. “Structural changers” and “trend reversers”
Top markets
The top markets among the 29 cities analysed are major
cities of above-average success with more than 500,000
inhabitants that have long been characterised by positive
demographic and economic conditions and growth. As ma-
jor financial, commercial and industrial centres, the top lo-
cations are home to major national and international com-
panies and corporate headquarters. They also comprise
major transport hubs, often of international significance.
010
The top markets are attractive to a wide range of target
groups and are magnets for influxes of migrants both from
within Germany and abroad, resulting in strained housing
markets. Overall, the top markets are typically character-
ised by the following features:
l Consistently positive and predominantly above-aver-
age population growth owing to positive net migration
and a corresponding increase in the number of house-
holds. Migration both from within Germany and abroad
l Above-average purchasing power
l Low to moderate unemployment and a high proportion
of employees subject to social security contributions
l Significant surplus demand in the housing market
for all property types (apartments, single-family/
two-family houses and apartment buildings) and from
private persons/owner-occupiers, private investors
and institutional investors
l Very low and further declining housing vacancy rates,
already trending towards zero in many districts
l High to the highest rents and property prices as well
as generally consistent rises in asking rents and prices
despite the already above-average levels
l High purchase price multipliers and low yields
l Low willingness to sell on the part of owners and
consequent low supply of available properties or units
Of the 29 cities analysed in this report, Dusseldorf, Frank-
furt am Main, Hamburg, Cologne, Munich, and Stuttgart
comprise the group of top markets. Thus, the group cor-
responds with the cities generally known as the top seven
markets in Germany, with the exception of the capital Ber-
lin. Owing to its current highly dynamic development and
from a significantly lower base than the six other top seven
markets on many indicators, Berlin is categorised among
the dynamic cities.
 C I T Y CO M PA R I S O N

population growth from 2011 to 2014 – the cities with the strongest growth
indexed, population 2011 = 100

107 106.8 Leipzig

106.1 Frankfurt am Main
106
104.7 Munich

105 104.3 Augsburg

104.3 Berlin
104 103.7 Freiburg
103.6 Dresden
103
103.6 Stuttgart
103.3 Cologne
102
103.0 Mainz
101 101.1 Germany

100

99

2011 2012 2013 2014

Source: Federal Statistical Office, compiled by CBRE

Dynamic cities l Above-average unemployment rate but strong

The dynamic cities are characterised by rapid positive de-
velopment in the recent past and have, therefore, increas-
ingly come into focus for investors. From a low base, these
dynamic cities show significantly above-average socio-eco-
nomic development, both compared with their respective
federal states and Germany as a whole, but still lag behind
the top markets and the traditionally sought-after, average-
sized markets with regard to these factors owing to their
low starting point. However, the dynamic cities have fur-
ther, possibly more extensive, potential for development,
although the extent of this is dependent on the scale of
development already witnessed, as well as future trends.
Overall, this group is characterised by cities with the fol-
lowing features:
l Significantly above-average growth in population
and household figures
l Below-average but rising purchasing power
employment growth in recent years
l Moderate rents and property prices compared with
the top markets and the traditionally sought-after,
average-sized markets
l Strong increases in rents and property prices in the
recent past with some exorbitant growth rates
l Surplus demand in the housing market in the segments
and locations preferred by migrants
l Low or significantly declining housing vacancy rates
l Rapidly rising purchase price multipliers
Among the 29 markets analysed in this report, the group
of dynamic cities comprises the German capital Berlin and
by far the largest cities in eastern Germany, Dresden and
Leipzig.

011
C I T Y CO M PA R I S O N

Traditionally sought-after, average- l High rents and property prices, mostly somewhat
below the level of the top major cities but in some
sized markets cases already higher
The traditionally sought-after, average-sized markets among l Continuing rises in asking rents and asking prices
the 29 cities studied resemble the top markets in many as- despite the already high levels
pects. However, as major cities with around 200,000 to l Surplus demand in the housing market, particularly in
500,000 inhabitants, they are smaller than the top markets the apartment and single-/two-family house segments
and normally have lower net migration from abroad. These l Low to very low and further declining housing
cities are often situated in close proximity to the top mar- vacancy rates
kets or are at least closely connected to them via transport l Low willingness to sell on the part of owners and con-
links. The cities in this group have often had important na- sequent low supply of available properties or units
tional or at least transregional functions as state capitals,
centres of administration, or major university locations for Traditionally sought-after, average-sized markets are pre-
decades, if not centuries. In addition, the cities in this group dominantly found in southern Germany. This group com-
are characterised by the following features: prises seven of the 29 cities studied: Augsburg, Freiburg,
l Consistently positive to above-average growth in Karlsruhe, Mainz, Mannheim, Nuremberg and Wiesbaden.
population and household figures
l Low to moderate unemployment and a high proportion
of employees subject to social security contributions Good performers
l Average to above-average purchasing power
The next group among the 29 cities analysed, good per-
formers, are generally characterised by a stable demo-
graphic and economic starting basis and positive overall
development, which can even be (highly) vigorous in some
areas. However, in contrast with the dynamic cities, these
Top 10: change in employees subject to
markets do not exhibit volatile growth but rather stable
social security contributions
2004 to 2014 in per cent
trends. The majority of cities in this group have a popula-
tion of around 200,000 and are of at least transregional
importance as centres of administration. The good per-
Leipzig +28.2 formers in this report are normally characterised by the
following features:
Berlin +24.6
l Stable to slightly above-average growth in population
Freiburg +22.2 and household figures
l Moderate to slightly above-average unemployment
Hamburg +21.9 rates
Cologne +18.2
l Moderate rents and property prices compared with
the top markets and the traditionally sought-after,
Munich +18.0 average-sized markets
l Rising asking rents and asking prices with even
Karlsruhe +17.7
significantly above-average growth rates in places
Brunswick +17.4 l Housing vacancy rate below fluctuation reserves of
around two to three per cent
Dresden +17.3
l Moderate purchase price multipliers compared with
Kiel +16.6 the top markets and the traditionally sought-after,
average-sized markets
Germany +14.7
Among the 29 cities analysed in this report, the good
Source: Federal Employment Agency, compiled by CBRE
performers group comprises Brunswick, Erfurt, Hanover,
Kiel and Lübeck.

012
 C I T Y CO M PA R I S O N

Structural changers and

trend reversers Top 10: change in asking rents
2012 to 2015 in per cent
The fifth group among the 29 cities studied comprises the
structural changers and trend reversers. These labels reflect
Berlin +19.9
the essence of the cities’ development. Structural changers
are former industrial cities with high economic importance Augsburg +17.1
for the entire region. Following the demise of major indus-
trial sectors in recent decades, these cities have undergone Brunswick +15.5
far-reaching transformations in the course of structural Hanover +14.0
change. The largest challenges have now been overcome
and the turnaround successfully negotiated. Consequently, Munich +13.4
economic fundamentals are trending upwards, albeit with-
Leipzig +12.6
out the same vigour witnessed in other cities. With an
ongoing process of improving structures and conditions Dortmund +11.5
for businesses to relocate to these cities, the structural
Dresden +11.4
changers are laying the foundations to keep up with the
dynamism and development in other cities. The structural Nuremberg +10.1
changers and trend reversers in this report are normally
characterised by the following features: Cologne +9.6
l Slight to noticeable positive population growth Germany +3.7
l Below-average purchasing power
l Above-average unemployment rate, but often Source: CBRE, based on data from empirica-systeme
strong employment growth in recent years
l Below-average to moderate rents and property prices
l Positive to significantly above-average rental and
price growth
l Moderate to above-average housing vacancy rates
with some significant declines in vacancy rates
l Often still low purchase price multipliers
CONCLUSION: NOT ONLY THE TOP MARKETS IMPRESS
Among the 29 cities analysed, Bremen, Chemnitz, Dort- Investment in residential property is not only worthwhile
mund, Duisburg, Essen, Halle, Magdeburg and Rostock in prospering cities with the best fundamentals. Upon
comprise the structural changers and trend reversers group. closer examination of trends in indicators relevant to
With an increase in asking rents of almost 12 per cent over the housing market, it is evident that cities which have
the last three years, Dortmund has recorded the highest strengths in some areas and more modest results in oth-
rental growth in this group. The weakest growth has been ers can also be impressive. Top markets or traditionally
witnessed in Rostock, where asking rents have risen by just established locations are not exclusively the most promis-
0.6 per cent over the last three years. ing cities for investment.

Leipzig, for instance, has witnessed the strongest growth

in terms of demographic trends in recent years. According
to the latest available data, the population in Leipzig rose
by 6.8 per cent within three years (end of 2011 to 2014),
which was the highest growth among all 29 cities studied.
Two of the top markets followed in second and third place
in Frankfurt (+6.1 per cent) and Munich (+4.7 per cent),
while Augsburg and Berlin (each +4.3 per cent) occupied
fourth and fifth places.

013
C I T Y CO M PA R I S O N
Munich has exhibited the highest purchasing power
among the 29 cities analysed for years. With an average of
€29,037 per capita, the city is significantly ahead of other
top markets Dusseldorf (€25,963) and Frankfurt (€25,168)
and far above the German average (€21,865). Munich also
tops the unemployment rate rankings with 5.2 per cent.
The state capital of Baden-Württemberg, Stuttgart, ranks
third with 5.7 per cent, while Karlsruhe (5.5 per cent),
Mannheim and Freiburg (each 6.0 per cent), three of the
traditionally sought-after, average-sized markets, are also
among the five cities with the lowest unemployment rate.
As already stated, there are many cities among the top
29 markets where rents are already high yet continue to
rise. Munich topped the rental ranking by some distance
with a median asking rent of €14.61 per sq m per month.
Asking rents in the city have also shown significant growth
over the last three years (+13.4 per cent). Stuttgart, too,
posted significant rental increases (+9.1 per cent) despite
an already high asking rent of €10.91. In addition to the
continued high growth rates in these two top markets, the
cities currently registering high rental increases are those
starting from a lower base. The markets with the larg-
est rental increases include two good performers (Bruns­
wick and Hanover) as well as one dynamic city (Leipzig)
and a structural changer (Dortmund). With an increase of
15.5 per cent, Brunswick posted the third highest increase
in asking rents over the last three years among the 29 cit-
ies studied. However, the average asking rent of €7.16 per
sq m remains moderate in comparison to the cities ana-
lysed. The same is true of Hanover (+14.0 per cent to
€7.50), Leipzig (+12.6 per cent to €5.63) and Dortmund
(+11.5 per cent to €6.00).
In many cities, vacancies are now significantly below fluc-
tuation reserves. Consequently, 22 of the 29 cities ana-
lysed recorded a vacancy rate below three per cent. Strong
growth in population, often combined with insufficient
building activity, has depleted the necessary reserves
causing contraction in the number of available units. Four of
the 29 cities analysed even registered an active market va-
cancy rate below one per cent; namely Munich, Frankfurt,
Hamburg and Freiburg. In contrast, the vacancy rates in
Leipzig, Halle and Chemnitz were markedly higher, ranging
between 6.0 per cent and 9.2 per cent. However, in these
dynamic or trend-reversing cities, vacancy rates have also
fallen from double-digit levels in recent years and in some
cases significantly.
014
SOPHISTICATED ANALYSIS ESSENTIAL
The top markets are not alone in demonstrating that cit-
ies with highly positive socio-demographic and socio-eco-
nomic trends, as well as high rental levels, also frequently
have high sale prices and high multipliers. Apartment
buildings in corresponding locations are often only of inter-
est to risk-averse or private investors. However, the obser-
vations in the report also demonstrate that, in addition to
the markets that are traditionally strong in almost all areas
and have correspondingly high price levels and scarce sup-
ply, there are also cities with significant strengths in some
aspects and that may be attractive not only to opportunis-
tic investors with a greater appetite for risk. For investors,
therefore, it is essential to look more closely and analyse
cities in-depth in respect of potential investments.
The report also subjects the 29 cities to a detailed analy-
sis with regard to demographics, socio-economics and
the housing market and provides the reader with informa-
tion on trends and developments in the respective mar-
kets. Numerous graphics provide information regarding
current developments. The standardised layout of these
enables direct comparison with the other markets or na-
tional figures. With regard to the housing markets, there is
a particular focus on the rental apartment market, which is
a defining segment for cities. Based upon postcode areas,
each of the 29 cities has been divided into spatial catego-
ries with the same rental levels. This enables a small-scale
analysis of the asking rents in each city. The profiles are
complemented by numerous graphics, tables and observa-
tions, providing extensive information on the 29 cities.
 CITY PROFILES

Detailed
analysis of the
29  cities

015
CITY PROFILE n AU G S B U R G

Augsburg: Home of innovation

Augsburg knows how to structure change. The former textile stronghold is now a leader in the fibre
composite, mechatronics & automation, environmental technology and IT sectors. Despite its close
proximity to Munich, rental levels are moderate.

With 281,111 inhabitants, Augsburg is the third-largest city prayers a day for the salvation of the founding family. The
in Bavaria after Munich and Nuremberg and the only city in Altstadt (Old Town), with its narrow alleys and corners, the
Germany with its own civic holiday. Since 1650 the “Augs- preserved weirs, the city walls and the Lech canals, also
burg High Peace Festival” has celebrated the equal status contributes to Augsburg’s historical flair. Numerous wa-
of the Catholic and Lutheran confessions that was gained ter towers and the hydropower stations at the Wolfzahnau
in the Peace of Westphalia. The city is notable for its many or at the Hochablass, bear witness to a long tradition of
creative minds and innovative developments. Jakob Fugger hydraulic engineering in the city. With its historical water
laid the foundations here for the modern financial econ- management, Augsburg is now on the list of cities under
omy, Rudolf Diesel developed the engine that is named af- consideration to become a UNESCO World Heritage Site.
ter him, Johann Heinrich von Schüle was one of the biggest
textile manufacturers of his time, and the grandchildren of
the aviation pioneers from Augsburg are now active in the
city’s aerospace companies. Economic strength and so-
cial responsibility have always gone hand in hand in Augs-
burg. The “Fuggerei”, whose name harks back to a founda-
tion of the merchant Jakob Fugger from 1521, is the oldest
social housing estate in the world. The annual rent for the
apartments, most of which are 60 square metres in size,
is still one Rhenish Gilder, now €0.88, together with three

016
 CITY PROFILE n AU G S B U R G

The City of Augsburg in Bavaria is one of the world’s leading locations in the
manufacture of robots. Augsburg-based companies in the field of automation
produce more than 60 robots per day.

LOOKING TOWARDS A PROFITABLE FUTURE
Augsburg benefits from good transport links with Mu-
nich, situated around 80 kilometres away, via the A8 mo-
torway. The Bavarian capital can also be reached within
just 30 minutes or so via ICE high-speed train. Augs-
burg’s railway station is currently undergoing conversion
into a transport hub to improve the co-ordination of the
tram, regional railways and long-distance transport net-
works at a cost of some €150 million. The city has coped
with the downfall of the traditionally strong textile in-
dustry and the withdrawal of the US armed forces in the
1990s and has managed an impressive structural change.
With a network of companies, research and funding insti-
tutions, associations and education and training institu-

017
CITY PROFILE n AU G S B U R G
tions, Augsburg has a high level of future potential in the
mechatronics and automation, fibre composite technology,
environmental technology and information and communi-
cation technology sectors of expertise. In addition to ma-
jor companies, such as KUKA, MAN Diesel & Turbo, and
MT Aerospace, there are numerous innovative small and
medium-sized enterprises in Augsburg. Augsburg also has
a vibrant research landscape. The University of Augsburg,
the university of applied sciences, and numerous institu-
tions and project groups co-operate closely with industry.
A new institute building for materials resource manage-
ment at the University of Augsburg is in the pipeline at a
cost of €42.3 million, which, together with other research
institutions in Augsburg, namely the Fraunhofer-Ge­sell­
schaft and the German Aerospace Center, will consolidate
academic expertise in the fields of business information
systems, materials sciences and resource management
as well as mechatronics, information technology and soft-
ware. A key milestone in the networking of science and in-
dustry is the Augsburg Innovation Park. On a site covering
70 hectares, one of the largest innovation parks in Europe,
which also includes the Augsburg Technology Centre, is
being created near the city centre. Furthermore, Messe
Augsburg is the third-largest exhibition centre in Bavaria.
POSITIVE TREND IN HOUSEHOLD NUMBERS
The number of households in Augsburg is expected to
grow by 3.7 per cent between 2012 and 2030. From
2009 to 2013, annual net migration of young adults from
the EU-27 countries grew significantly. More than half of
incoming persons in this age group are “education mi-
grants”, who usually come to the university of applied
sciences at the beginning of the winter semester. Conse-
quently, the proportion of young people under the age of
30 represents the largest age group in Augsburg at 33 per
018
cent. However, demographic change will also become no-
ticeable in Augsburg during the next 20 years. According
to a small-scale population projection conducted by the
City, the share of people under the age of 30 is expected
to fall by 1.3 per cent in comparison to 2011, with the
share of those over the age of 60 rising by 13.7 per cent.
In terms of the individual districts, the projection assumes
population growth, particularly in the districts near the
city centre. However, if the influx continues in line with
previous years, mainly in the 20 to 25 year-olds age group,
Augsburg will age more slowly than projected. For the en-
tire city, this will result in a relatively lower rise in the av-
erage age, from 42.5 in 2010 to 43.7 in 2030.
RISING RENTS, MODERATE LEVEL
The median asking rent in Augsburg has risen by 17.1 per
cent from €7.26 per square metre in 2012 to €8.50 in
2015. This places Augsburg second out of the 29 cities
in terms of rental growth, behind Berlin, which probably
owes much to the city’s proximity to Munich. However,
compared with the average rent of €14.61 in the Bavarian
capital, which is only 30 minutes away by train, rents in
Augsburg are still at a moderate level. The highest median
asking rents in 2015 were recorded in the Antonsviertel
and Hochfeld areas as well as the university quarter [01],
to the south of the city centre, at €8.99. Due to its close
vicinity to the university, the area is particularly popu-
lar with students as well as university employees. The city
centre can be quickly reached by public transport. The
university quarter began to emerge in 1973 on the former
site of the factory airfield of Messerschmitt AG, which,
following a number of acquisitions, now belongs to Air-
bus subsidiary Premium Aerotec. The prevailing high-rise
apartment buildings do not appear uniform or anonymous
due to the diverse design, the individual facilities and
 CITY PROFILE n AU G S B U R G

DISTRIBUTION OF ASKING RENTS IN AUGSBURG 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

1.0 0.9 15.3 10.5 57.3 51.4 21.1 28.5 3.8 7.3 1.6 1.3
60%

50%

40%

30%

20%

10%

0%

under €5.00 €5.00 to €6.99 €7.00 to €8.99 €9.00 to €10.99 €11.00 to €12.99 €13.00 and over

In 2015, the majority of asking rents ranged between €7.00 and €8.99. However, the
share of high-priced rents particularly increased, especially affecting the segments
ranging from €9.00 to €12.99.

their reasonable height, with rarely more than six storeys.
Many streets are free from cars and embellished with
rows of trees and landscaped spaces. The Antonsviertel
area still features many well-preserved, post-classical or
new-baroque buildings and usually open developments
with many landscaped spaces. However, buildings are also
found here that were constructed during the “modern”
building culture of the 1950s to 1970s after the demolition
of the historical buildings.
The median asking rent in Augsburg city centre was of a
similarly high level at €8.95 per square metre [07]. The
city centre is divided into the Oberstadt (Upper Town),
with its wide shopping streets, and the Unterstadt (Lower
Town) and Altstadt areas with their narrow, winding alleys.
The Altstadt in Augsburg, which is one of the largest old
towns in Germany by area, provides a high quality of life
now since being extensively renovated from the 1980s
onwards. Due to its many creeks, canals and bridges, the

Key Figures for the housing market

Augsburg Bavaria Germany

Average asking rent 2015 in €/m²/month 8.50 7.70 6.51

Average size of apartments on offer 2015 in m² 63.0 74.0 68.0
Vacancy rate in apartment buildings 2014 in % 1.2 1.6 3.0
Newly finished apartments1) per 1,000 residents 2014 5.5 3.7 2.7
Of which are in apartment buildings 2)
4.7 1.9 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

019
CITY PROFILE n AU G S B U R G

Asking Rents in AUGSBURG 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ] Antonsviertel, Hochfeld, University quarter 270 62.5 8.99

[ 02 ] Bärenkeller, Kriegshaber, Oberhausen 369 60.0 8.00
[ 03 ] Bergheim, Göggingen, Inningen 257 63.0 8.78
[ 04 ] Firnhaberau, Hammerschmiede 49 66.8 8.14
[ 05 ]
Haunstetten-Siebenbrunn 179 66.0 7.92
[ 06 ]
Hochzoll 148 62.5 7.99
[ 07 ] City Centre 854 63.0 8.95
[ 08 ]
Lechhausen 313 64.0 8.27
[ 09 ]
Pfersee 175 64.8 8.33
[ 10 ]
Spickel-Herrenbach 141 63.0 8.67
Augsburg average 2,755 63.0 8.50

district is frequently referred to as “Little Venice”. As for the major Messerschmitt factory created at the start of
the alleys and streets in the Altstadt area are free from the 20th century. Siebenbrunn, meanwhile, epitomises the
through traffic, it is a very quiet residential location de- rural character of the district.
spite its central location. The Mietpreisbremse (capping of rents on re-letting) came
The lowest median asking rent in Augsburg was found into effect in Augsburg on 1 August 2015. Since the city
in the Haunstetten-Siebenbrunn [05] area in the south does not have a rent index, it remains to be seen how the
of the city at €7.92 per square metre. However, this has local comparable rents will be calculated. Indeed, this may
risen sharply in recent years from an average rent of just pose a number of challenges.
€6.90 in 2012. In view of the moderate rental levels by city-
wide comparison and the fact that rents are rising through-
out the city, it is not improbable that the area will see fur-
ther rental growth. The surrounding areas, particularly the
Siebentischwald, Haunstetter Wald, and Stadtwald forests
offer a pleasant contrast to the working day. Augsburg city
centre can be reached within 15 minutes by public trans-
port. The densely-populated Haunstetten area is renowned

AUGSBURG IS RICH IN TRADITION AND possesses A PIONEERING SPIRIT IN RESEARCH

Augsburg is the third-largest city in Bavaria and, with the “Fuggerei”, home to the oldest social housing estate in the
world. Augsburg has particular economic strengths in the fields of mechatronics and automation, fibre composite
technology, environmental technology, and information and communication technology. The positive population and
economic growth, as well as the city’s location within the catchment area of Munich, resulted in a 17.1 per cent in-
crease in asking rents between 2012 and 2015; the highest growth across all cities in Bavaria. Further rental and price
growth is expected going forward. However, the median asking rent of €8.50 per square metre remains moderate in
comparison to Munich.

020
 CITY PROFILE n AU G S B U R G

aVeraGe asKinG renTs in CiTY areas 2015

04

02 08

07

09

10
06

01

03

05

Insufficient number of cases

Median in €/m²/month

7.92 – 7.99 8.00 – 8.04 8.05 – 8.19 8.20 – 8.30 8.31 – 8.54 8.55 – 8.75 8.76 – 8.93 8.94 – 8.99

021
CITY PROFILE n BERLIN

Berlin: Rising pressure from economic

and population growth
Following times of high unemployment and debt, the German capital has witnessed above-average
growth in recent years. Asking rents are rising consistently and, thanks to increases in population and
purchasing power, this is now also true of the outskirts of Berlin.

Berlin’s economy is undergoing dynamic growth. Between
mid-2014 and mid-2015, the gross domestic product rose
by 1.7 per cent on a price-adjusted basis, which is ahead
of the German average (+1.4 per cent). Following German
reunification, Berlin is once again in the heart of Europe
and has established itself as an international centre of
culture and government. Government, parliament, associ-
ations, media, and other institutions in the capital provide
a solid basis, which is largely independent of economic
performance. However, the city has enjoyed particular
economic growth in the construction industry, commerce,
gastronomy, and the information and communication
sector; it boasts the largest number of Internet start-ups
in Germany. The largest single sector in Berlin is tourism.
The city is the third most popular destination in Europe
behind London and Paris.
Berlin’s industrial sector is also growing again following a
prolonged period of weakness. Other key sectors in the
capital include vehicle and engine manufacturing, pharma-
ceuticals, medical technology, and electrical engineering.
The number of people in work rose overall by 1.3 per cent
from the second quarter of 2014 to the corresponding pe-
riod in 2015, according to the latest available figures, which
was the highest increase across all federal states.
HOUSING: SHARP RISE IN DEMAND
Demand for housing in Berlin is being driven by increases
in population and household numbers as well as dis-
posable income. Even before the large influx of refu-
gees, the population was growing consistently by around
40,000 per year. Between the end of 2011 and the end
of 2014, the total number of inhabitants in the city rose
by 4.3 per cent to 3,469,849. As a result of the grow-

022
 CITY PROFILE n BERLIN

The German capital, Berlin, is immensely popular with new arrivals. In recent
years, the city has gained around 40,000 new inhabitants annually as a result of
immigration.

ing population, the number of households in Berlin is ris-
ing by more than 20,000 per year. In 2011, Berlin’s Sen-
ate expected the population to rise by approximately
250,000 by 2030. However, in view of current population
growth, these projections appear far too conservative.
While construction activity has recently risen, the supply
of housing cannot keep pace with this growing demand.
In 2014, almost 7,300 residential units were completed
in the city (in new residential and non-residential build-
ings including residential homes). However, the absolute
figure falls significantly short of growth in population and
households. In 2015, new-build activity gained signifi-
cant momentum. The number of planning approvals for
residential units (in new residential and non-residential

023
CITY PROFILE n BERLIN
buildings) totalled 8,488 in the first six months of the
year alone; 6.7 per cent higher than in the previous year
but still significantly short of the growth in the number of
households.
This increasing supply shortage is resulting in significantly
higher asking rents. Between 2012 and 2015 alone, the
median asking rent per square metre rose by 19.9 per cent.
This represented the highest percentage increase across
all 29 cities researched for this report, ahead of Augsburg
(+17.1 per cent) and Bruns­wick (+15.5 per cent). Now, Ber-
lin ranks in 10th place among the 29 cities included in the
report. The median asking rent in 2015 stood at €8.99 per
square metre. The vacancy rate in apartment buildings
has also fallen consistently, declining from 3.3 per cent in
2009 to just 1.5 per cent in 2014.
A YOUNG AND MOBILE POPULATION
The number of single-person households in Berlin is dis-
proportionately high at 53.9 per cent, whereas house-
holds with three or more members are significantly un-
der-represented compared with the rest of Germany. The
latter is typical of major cities. However, while some other
cities have a high proportion of senior citizens, this group
is also below-average in size in Berlin.
024
In the spatially and socially very heterogeneous German
capital, local rental levels also show a wide variation. The
highest levels in 2015 were reported in the city centre area
comprising Chausseestraße, Unter den Linden, Rosen-
thaler Platz and Hackescher Markt [05] with a median
asking rent of exactly €13.00 per square metre. Despite the
high rental level, the area is enjoying strong demand and
registered an increase of 6.6 per cent compared with the
previous year. Spacious apartments are available in both
old buildings and new-builds. Indeed, property listings in
this area have the third-highest average living space of all
areas in Berlin at 79 square metres. Despite the central lo-
cation, there is still further potential for new-build devel-
opment, which is currently being particularly exploited on
and near strips previously occupied by the Berlin Wall in
the west, south and north of the area. Examples include
the Europacity development near the main railway station,
the Feuerlandhöfe opposite to the Federal Intelligence Ser-
vice headquarters and the Markgrafenkarree between the
Gendarmenmarkt and Kreuzberg.
TRENDY AREA AND MIDDLE-CLASS CITY CENTRE
The second highest median asking rent in 2015 was found
in the prestigious residential area comprising Grunewald
and Dahlem [12]. These districts offer by far the largest
apartments in the city, with an average size of 97.4 square
metre; the fourth highest figure across all areas studied
in this report. However, Grunewald and Dahlem are also
notable for the relatively weak nature of the prime seg-
ment. The most expensive decile of asking rents started
at €14.09 per square metre, placing the area just 10th in
the Berlin rankings. The reason for this is that demand at
the top end of the market in such areas with a high pro-
portion of villas is primarily for home ownership rather
than rental apartments.
 CITY PROFILE n BERLIN

DISTRIBUTION OF ASKING RENTS IN BERLIN 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

9.2 7.9 30.3 27.3 27.4 27.0 16.0 17.9 8.8 9.8 8.4 10.1
40%

30%

20%

10%

0%

under €6.00 €6.00 to €7.99 €8.00 to €9.99 €10.00 to €11.99 €12.00 to €13.99 €14.00 and over

The rental growth in Berlin is reflected in the distribution of asking rents. In 2014,
around 33 per cent of lettings were priced at €10.00 per square metre and above.
In 2015, this rose to almost 38 per cent.

The next highest median asking rent was recorded in
those areas inside the S-Bahn ring, which comprises the
inner city area, home to some 1 million inhabitants. The
areas with the highest rents are dominated by old build-
ings from the Wilhelminian period, wide leafy roads and
a mix of residential, commercial, retail and restaurant
uses. Kreuzberg [18] has seen particularly strong rental
increases in recent years to €11.43. The area remains
characterised both by a trendy image with a large propor-
tion of young people, people of Turkish origin and a vo-
cal activist scene, as well as high demand from investors
and occupiers (both tenants and owner-occupiers) due
to its proximity to the city centre and urban vitality. De-
mand from wealthy individuals both from Germany and
abroad is particularly concentrated in areas comprising
old buildings in south west and east Kreuzberg (such as
Bergmannkiez and Graefekiez). The adjoining Nord-Neu-
kölln [23] is also dominated by old buildings, with a few

Key Figures for the housing market

Berlin Federal State Berlin Germany

Average asking rent 2015 in €/m²/month 8.99 8.99 6.51

Average size of apartments on offer 2015 in m² 64.3 64.3 68.0
Vacancy rate in apartment buildings 2014 in % 1.5 1.5 3.0
Newly finished apartments1) per 1,000 residents 2014 2.1 2.1 2.7
Of which are in apartment buildings 2)
1.5 1.5 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

025
CITY PROFILE n BERLIN
exceptions, which were built in the Wilhelminian period
for less wealthy sections of the population. With an av-
erage size of 50 square metres in 2015, the apartments
here were the smallest available in the entire city. The dis-
trict has been discovered as an alternative to the expen-
sive Kreuzberg and witnessed a particularly sharp rise in
the median asking rent of 26.3 per cent between 2012 and
2015 to exactly €10.00.
Charlottenburg [27] to the left and right of the Kurfürsten-
damm is also characterised by old buildings and a vibrant
mix of uses (€11.03 per square metre). However, many in-
habitants are older and wealthier than those in Kreuzberg
and its surroundings and the area is somewhat more el-
egant. With an average size of 79 square metre, the apart-
ments offered are far larger than those in the afore-men-
tioned districts. Rents immediately southeast of here in
Schöneberg [02], with its middle-class, well-kept old build-
ings and post-war districts, as well as in Alt-Schöneberg
and Viktoria-Luise-Platz are somewhat lower at €10.26.
EASTERN CITY CENTRE PERIPHERY: STILL ONLY
MODEST RENTAL GROWTH
High median asking rents between €10.78 and €11.08 are
also commonly seen in densely developed districts of
old buildings inside the S-Bahn ring, namely Prenzlauer
Berg [25] and Friedrichshain [11] on the northeastern
and eastern periphery of the city centre. Following years
of strong rental growth, however, the potential in Prenz­
lauer Berg currently appears to have been largely ex-
hausted. The median asking rent rose by 4.6 per cent
in 2015, which was below the overall figure for Berlin of
5.1 per cent.
Relatively high median rents of more than €9.00 can be
found outside of Berlin’s city centre ring, particularly in
the adjacent districts to both the south and the west. This
is true of Charlottenburg-Westend [33] and the southern
areas of Friedenau and Schmargendorf, including north-
ern Steglitz [08].
026
GOOD TRANSPORT LINKS ARE IMPORTANT
Both tenants and investors are increasingly turning their
attention to areas that are well connected to the city cen-
tre yet currently still offer more affordable terms for occu-
piers – generally around or slightly above Berlin’s overall
median asking rent of €8.99. This includes the area com-
prising Rummelsburg, Karlshorst and Treptower Park [26]
on the southeastern periphery of the city centre. This is
a mixed area that combines industry and large transport
routes with middle-class, well-kept, multi-storey proper-
ties further out in Karlshorst, and the Stralau peninsula,
where extensive new-build rental housing has emerged
over the last decade. The area comprising Niederschön-
hausen, Central Pankow, Neumannstraße, Ostseestraße
and Weißensee West [22] is an alternative district with
good connections to the city centre yet relatively low
rents to date.
Even lower rents are found in the districts adjoining the city
centre to the north, extending from Charlottenburg North
to Wedding with Nauener Platz and Gesundbrunnen [04].
The area is predominantly comprised of simpler old build-
ings and social housing, and busy roads and railways are
often nearby. The northern area is also on the approach to
Tegel Airport. Charlottenburg North, with its high propor-
tion of former social housing from the 1950s and 1960s,
enjoys a special position. Even lower median asking rents
of €8.13 are found in Friedrichsfelde North, Central Lich­
ten­berg and Fennpfuhl [09] to the east of the city cen-
tre. These districts are dominated by Plattenbau buildings
(slab construction). However, from an area of little repute,
this part of Berlin has now been discovered as a well-con-
nected alternative to the city centre. Indeed, this is not the
only area where affordable yet well-connected locations
are increasingly being sought outside of the S-Bahn ring.
AFFORDABLE RENTS IN THE OUTSKIRTS
In the peripheral areas of Berlin, there is a wide varia-
tion in building stock and rental levels. The highest asking
rent of €9.05 is found in the south west of the city com-
prising Zehlendorf, Clayallee South, Wannsee, Nikolas-
see, Schlachtensee, Gatow, and Kladow [34]. The areas
in Zehlendorf in particular are a focal point of expensive
and even luxury housing with numerous villas and single-
family houses in attractive locations on the water or near
woodland. However, owner-occupiers account for large
parts of the market, meaning that rental levels are high al-
though not at the peak levels found in the centre of Berlin.
Slightly less expensive at €8.50 is the adjacent, densely
developed area to the east comprising Lichterfelde, Unter
 CITY PROFILE n BERLIN

den Eichen and Ostpreußendamm [19]. Similarly to the
areas in the southwest, the northwestern outskirts com-
prising Konradshöhe, Heiligensee, Frohnau, Hermsdorf
and Alt-Tegel [16] are primarily an owner-occupier mar-
ket. These areas also feature numerous waterside and
woodland locations as well as many small-scale develop-
ments of single-family houses and villas. At €8.42, the
rental level is good but not exorbitant.
The peripheral areas of Berlin, such as Britz, Rudow and
northern Pankow, are also dominated by asking rents be-
tween €7.00 and €8.00. These areas are characterised by
post-war rental apartment blocks from large-scale Plat-
tenbau buildings to small apartment complexes. Such
developments are interspersed with areas of owner-oc-
cupied homes, some of them quite extensive, which are
of an average or more basic standard. However, there are
also suburban centres, often with good local infrastructure
resembling that of a medium-sized town.
The least expensive areas of Berlin show median ask-
ing rents below €7.30. Many of these comprise estates of
post-war social housing and Plattenbau buildings, some
are remote from the city centre on the outskirts and some
share all of these characteristics. Rents have shown re-
spectable percentage growth but from a very low base.
These areas remain locations for tenants on a small budget.
Relatively central locations in these areas are parts of
Neukölln and Treptow-Köpenick, including Sonnen­allee
South, Baumschulenweg, and the former industrial area
of Schöneweide [28], which is enjoying a new lease on
life thanks to a university and the factory lofts, which are
now occupied by artists. Somewhat less expensive again
is southern Neukölln, which is well connected by the un-
derground system, comprising Johannis­thaler Chaussee,
Buckow East and Gropiusstadt [14], an area established
around 1970 with high-rises and large open spaces. Large
parts of Spandau on the western outskirts of Berlin also fall
within the price segment around €7.00.
At the bottom of the rental rankings are large, post-
war satellite town areas, which are poorly connected to
the city centre: Märkisches Viertel in the northern out-
skirts [32], Hellersdorf and Marzahn [15] to the east and
the high-rise areas of Spandau, Falkenhagener Feld and
Heerstraße North [07] near the western outskirts of the
capital. These are the only areas in the city where the me-
dian asking rent remains significantly below €6.50 per
square metre. Here too, asking rents have risen. However,
these will remain areas of affordable housing.
The now reinvigorated residential development activity in
Berlin is unlikely to materially shift the balance between
districts or relieve the surplus demand in the overall mar-
ket to the benefit of prospective tenants. New-build ac-
tivity is too weak in relation to the size of the city and
growth in population and household numbers. However, it
is breathing new life into certain areas with large derelict
sites. This is currently true of the area to the north of the
main railway station, the adjoining area to the east around
Chausseestraße and the former border areas between
Mitte and Kreuzberg. In the medium term, there should
also be pockets of intensive new-build activity in outer
districts, such as Schöneweide, Lichterfelde South and
Lich­ten­berg. All of this will reduce the tension in the mar-
ket. However, this tension will remain high over the com-
ing years owing to sustained high net migration in Berlin.

RENTS RISING THROUGHOUT THE CITY, NO TREND REVERSAL EXPECTED

Rental levels in Berlin are still below those in other major cities. However, the capital has been gaining ground
in recent times. Population and household numbers as well as purchasing power (which is still below the
German average) are growing, ensuring high demand for housing. While rents initially rose exclusively in city
centre locations and trendy central districts, this trend is now increasingly spreading outwards and is even
reaching peripheral locations. There is no foreseeable end to the rental growth since the city’s population is
likely to continue growing more quickly than the supply of housing. New-build activity is increasing but cannot
keep pace with the rise in demand.

027
CITY PROFILE n BERLIN

Asking Rents in BERLIN 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ] Alt-Hohenschönhausen, Weißensee East 836 64.0 8.00

[ 02 ] Alt-Schöneberg, City Hall, Crellestraße, Schöneberger Insel, 1,184 61.0 10.26
Viktoria-Luise-Platz, Bayerischer Platz and Winterfeldtplatz
[ 03 ] Britz West, Buckow West, Rudow, Buschkrugallee, Johannisthal 1,112 64.1 7.50
[ 04 ] Charlottenburg North, Nauener Platz, Rehberge, Westhafen, 2,098 56.0 8.59
Gesundbrunnen, Soldiner Straße
[ 05 ] Chausseestr., Unter den Linden, Rosenthaler Platz, 2,575 79.0 13.00
Hackescher Markt
[ 06 ] Deutsche Oper, TU, Mierendorffplatz, Karl-August-Platz, 1,194 63.0 9.88
Alt Moabit West
[ 07 ] Falkenhagener Feld, Heerstraße/Wilhelmstraße 401 69.2 6.29
[ 08 ] Friedenau, Schildhornstraße, Fichtenberg, Rüdesheimer Platz, 1,408 68.3 9.40
Schmargendorf West
[ 09 ] Friedrichsfelde North, Lichtenberg, Fennpfuhl 1,035 56.0 8.13
[ 10 ] Friedrichsfelde South, Central Marzahn, Biesdorf, Kaulsdorf, 659 62.0 7.20
Mahlsdorf
[ 11 ]
Friedrichshain 2,802 58.9 10.78
[ 12 ] Grunewald, Dahlem 658 97.4 11.50
[ 13 ] Hochmeisterplatz, Halensee, Volkspark Wilmersdorf, Güntzelstraße 1,080 65.0 9.89
[ 14 ] Johannisthaler Chaussee, Buckow East, Gropiusstadt 270 71.0 7.00
[ 15 ] Kaulsdorf North, Hellersdorf, Marzahn, Ahrensfelde 2,243 67.9 5.92
[ 16 ] Konradshöhe, Heiligensee, Frohnau, Hermsdorf, Alt-Tegel 639 73.2 8.42
[ 17 ] Köpenick, Adlershof, Friedrichshagen, Rahn- and Bohnsdorf, 2,198 68.0 7.96
Müggelheim, Grünau, Schmöckwitz
[ 18 ] Kreuzberg, Potsdamer Platz 2,602 57.0 11.43
[ 19 ] Lichterfelde, Unter den Eichen, Ostpreußendamm 928 71.4 8.50
[ 20 ] Marienfelde, Lichtenrade, Lankwitz South 929 68.9 7.32
[ 21 ] Moabit Southeast, Birken-, Beusselstraße, Stephanstraße, 1,318 55.0 9.50
Zoo, Bülowbogen
[ 22 ] Niederschönhausen, Central Pankow, Neumannstraße, 1,876 63.5 8.89
Ostseestraße, Weißensee West
[ 23 ]
Nord-Neukölln 2,029 50.0 10.00
[ 24 ] Pankow North, Malchow, Wartenberg, Falkenberg 1,189 70.5 7.44
[ 25 ] Prenzlauer Berg 2,769 62.0 11.08
[ 26 ] Rummelsburg, Karlshorst, Treptower Park 942 63.7 9.18
[ 27 ] Savignyplatz, Western Kantstraße, Sybelstraße, Olivaer Platz, 1,415 79.0 11.03
Ludwigkirchplatz, Tauentzienstraße
[ 28 ] Sonnenallee South, Baumschulenweg, Schöneweide 1,046 59.0 7.20
[ 29 ] Spandau (excl. Falkenhagener Feld, Heerstraße/Wilhelmstraße) 2,188 65.5 7.01
[ 30 ] Tegel (Southeast), Eichborndamm, Alt-Reinickendorf, Residenzstr., 1,597 60.0 7.44
Borsigwalde, Wittenau
[ 31 ] Tempelhof, Mariendorf, Rixdorfer Straße, Rathaus Steglitz, 1,748 62.0 8.25
Lankwitz North
[ 32 ] Waidmannslust, Märkisches Viertel, Lübars 338 82.2 6.20
[ 33 ] Westend, Schloss Charlottenburg, Olympiastadion, Lietzensee 1,122 70.0 9.74
[ 34 ] Zehlendorf, Clayallee South, Wannsee, Nikolassee, Schlachtensee, 1,174 78.1 9.05
Gatow, Kladow
Berlin average 47,602 64.3 8.99

028
 CITY PROFILE n BERLIN

aVeraGe asKinG renTs in CiTY areas 2015

32 24

16

30
22 15
07 01
04
29 25
21 05 09
33 06 11
10
27 18
26
13 02
23
12 28
08
34 31 03 17

19 14

20

Median in €/m²/month

5.92 – 7.03 7.04 – 7.44 7.45 – 8.05 8.06 – 8.55 8.56 – 9.32 9.33 – 9.89 9.90 – 11.00 11.01 – 13.00

029
CITY PROFILE n B R U N SW I C K

Bruns­wick: Growing demand in

a dynamic location
Lower Saxony’s second-largest city is enjoying growing population and employment. This is also
driving up previously modest rents. Tenants in Bruns­wick seeking a new apartment also appear
to have a strong preference for established, central locations.

Growth in Bruns­wick is driven by its know-how-intensive
and export-oriented industries and numerous educa-
tional institutions with a focus on technology. According
to an EU study, the city – with 27 research facilities and
250 high-tech companies – is one of the most research-
intensive regions in Europe. The city forms a metropolitan
region together with Hanover, Göttingen, and Wolfsburg.
With more than 13,000 shops and stores, Bruns­wick is the
central location for retail in eastern Lower Saxony, as well
as for administrations as well as industry-related and pri-
vate-sector service providers. When it comes to start-ups,
Bruns­wick is one of Germany’s leading cities. The Tech-
nical University and Bruns­wick University of Art have ap-
proximately 20,000 registered students. From its lowest
point in 2003, the population rose by almost 10,000 by
2014, with the number of employees subject to social
security contributions rising by 17.4 per cent between
2004 and 2014; faster than the national average (+14.7 per
cent) and neighbouring Hanover (+12.9 per cent). At the
same time, the unemployment rate has almost halved
since 2005, falling to an annual average of 6.8 per cent in
2014. Although the population is expected to decrease by
2.3 per cent between 2012 and 2030 according to the pop-
ulation projections of the BBSR, the number of households
is expected to increase by 1.2 per cent (Germany +3.0 per
cent) over the same period. Bruns­wick is a relatively
young city. The proportion of 18 to 44-year-olds is well
above the national average, while senior citizens, children
and young people account for a below-average proportion.

030
 CITY PROFILE n B R U N SW I C K

Bruns­wick has the highest proportion of employment in the field of research

and development in Germany and is among the leading regions in Europe in terms
of intensity in this field with 7.3 per cent of GDP.

RENTS ON THE RISE FROM A LOW BASE
The above factors are having a significant effect on the
housing market. For one, median asking rents rose by
15.5 per cent between 2012 and 2015. However, the start-
ing point was rather low and, consequently, the median fig-
ure of €7.16 per square metre is still lower than in compa-
rable cities in southern and western Germany. This is not
least due to the greater availability of land for development
in Bruns­wick, which indirectly has also diluted demand in
the rental market. However, city centre locations are in-
creasingly in demand and rental apartments are in higher
demand than homes for sale in the suburbs. The tightening
of the rental market is also reflected in the vacancy rate.
This fell from 3.6 per cent in 2009 to 2.0 per cent in 2014;

031
CITY PROFILE n B R U N SW I C K
the same level as that in neighbouring Hanover.
The highest median asking rents per square metre in
Bruns­wick are found in the eastern outskirts of the city,
which comprise Volkmarode, Schapen and other smaller
localities [12]. These areas are dominated by single-family
homes. With fewer than 80 listings during the period stud-
ied, the rental market is relatively small and the median
asking rent of €8.42 per square metre should, therefore, be
interpreted with caution. However, more wealthy tenants
are increasingly gravitating towards central locations and
the growth potential in and around Volkmarode seems ex-
hausted for the time being.
HIGH-CLASS LIVING AROUND THE CITY CENTRE
The next most expensive area is located immediately to
the south and east of the city centre between the Bürger-
park and Prinzenpark [01]. The district close to the city
centre boasts a range of well-maintained old buildings and
green courtyards, with the median asking rent remain-
ing in line with the previous year at €8.07 per square me-
tre. This area is also home to the new-build St. Leonhards
Garten quarter, an urban planning sensation designed in
the basic shape of a Roman hippodrome. The next high-
est asking rents are found in the city centre [09] with an
average figure of €8.03 per square metre. The area bears
testimony to the growing interest in living in central, well-
032
developed areas and is simultaneously Bruns­wick’s most
vibrant submarket in terms of the number of listings. The
rental increase of 5.7 per cent in the centre is somewhat
more moderate than in the previous year. The area around
Wilhelmitor and Petritor East and West [14] close to the
city centre also shows asking rents significantly above the
Bruns­wick average, as do Ölper and Petritor North [07].
The latter area offers much charm due to its village-like at-
mosphere and proximity to the Ölpersee lake. On the other
hand, certain parts are somewhat isolated between two
motorways in the north west of Bruns­wick. The area has a
median asking rent of €7.64 per square metre. With fewer
than 100 apartments advertised during the period studied,
the small market comprising the widely dispersed villages
and residential areas of Völkenrode, Lehndorf, Lamme and
Kanzlerfeld [11] on the western outskirts of Bruns­wick has
an median asking rent some €0.22 lower. There are many
post-war buildings in the area, often of very high quality,
such as those in the extensive Kanzlerfeld residential area.
All other areas of Bruns­wick have median asking rents be-
low the citywide average of €7.16 per square metre. The
most expensive of these, at €7.11, is also close to the city
centre. The area around the Nordbahnhof station, tech-
nical university and Hagenring [06], which is located to
the north and northeast of the city centre, features many
old buildings, particularly in the heritage-protected Sieg­
fried­vier­tel area, with buildings from the 1920s and 1930s.
Apartments in the mostly four-storey, detached Wil-
helminian-era apartment buildings near the Oker on the
edge of the Altstadt (Old Town) are even more popular.
However, a number of major roads and university buildings
detract from the quality of the area. Asking rents in the
area declined by 1.0 per cent in 2015 and students in par-
ticular may well have reached the limits of their budget.
 CITY PROFILE n B R U N SW I C K

DISTRIBUTION OF ASKING RENTS IN Bruns­wick 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

2.8 1.6 47.8 41.7 32.6 38.4 11.7 14.6 3.6 2.7 1.5 1.0
50%

40%

30%

20%

10%

0%

under €5.00 €5.00 to €6.99 €7.00 to €8.99 €9.00 to €10.99 €11.00 to €12.99 €13.00 and over

Asking rents in Bruns­wick are of a moderate level. More than 40 per cent of the
residential properties on the lettings market were priced below the €7.00 per square
metre mark in 2015.

MIXED PICTURE IN THE OUTSKIRTS
The next highest rents are found in the area from Zucker-
berg to Leiferde [04] in the south of the city, where the
median asking rent per square metre fell by as much as
2.0 per cent. The districts of Heidberg, Melverode and
Stöckheim are typical urban development areas from the
post-war decades on the outskirts of the city, charac-
terised by ribbon development, terraced houses and de-
tached, single-family houses. The district of Zuckerberg
to the north is a prestigious residential area with a small
rental market. Asking rents tend to vary quite strongly
due to the limited supply in the locality.
The residential areas and suburbs of Querum, Dibbesdorf,
Hondelage and Kralenriede [08] are located to the north
east. With their small-scale development and fewer than
100 listings during the period studied, these areas have a
small supply of rental apartments.

Key Figures for the housing market

Brunswick Lower Saxony Germany

Average asking rent 2015 in €/m²/month 7.16 6.00 6.51

Average size of apartments on offer 2015 in m² 65.0 70.0 68.0
Vacancy rate in apartment buildings 2014 in % 2.0 3.4 3.0
Newly finished apartments1) per 1,000 residents 2014 1.2 3.0 2.7
Of which are in apartment buildings 2)
0.6 1.1 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

033
CITY PROFILE n B R U N SW I C K

Asking Rents in Bruns­wick 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ] Bürgerpark, Prinzenpark 216 72.0 8.07

[ 02 ] Geitelde, Broitzem, Stiddien, Rüningen, Gartenstadt, Am Südsee 99 64.0 6.67
[ 03 ] Harxbüttel, Thune, Wenden, Bienrode, Waggum, Bevenrode 61 65.0 6.75
[ 04 ] Leiferde, Stöckheim, Melverode, Heidberg, Zuckerberg 124 64.1 7.00
[ 05 ] Mascherode, Rautheim, Central train station 215 58.0 6.81
[ 06 ] Nordbahnhof, Old and new university district, Am Hagenring 227 65.0 7.11
[ 07 ] Ölper, Petritor North 191 60.0 7.64
[ 08 ] Querum, Dibbesdorf, Hondelage, Kralenriede, Querumer Forst 88 68.0 7.00
[ 09 ] Stadtkern, Hagen, Altewiek, Hohetor, Neustadt 323 67.0 8.03
[ 10 ] Timmerlah, Weinberg, Hermannshöhe, Rothenburg 218 73.0 5.80
[ 11 ] Völkenrode, Lehndorf, Lamme, Kanzlerfeld 82 66.5 7.42
[ 12 ] Volkmarode, Schapen, Riddagshausen, Gliesmarode, Pappelberg 78 73.0 8.42
[ 13 ] Watenbüttel, Veltenhof, Rühme 121 56.8 6.56
[ 14 ] Wilhelmitor, Petritor East and West 259 62.0 7.69
Brunswick average 2,302 65.0 7.16

With one exception, all other areas of Bruns­wick have me- partly characterised by housing developments of the post-
dian asking rents between €6.50 and €7.00 per square war period. The northwestern suburbs of Watenbüttel,
metre. The area comprising Mascherode, Rautheim, and Veltenhof, and Rühme [13] are dominated by a high pro-
the main railway station [05] at the southeastern end of portion of commercial use. The satellite area of Weststadt
the city includes some attractive but somewhat isolated and its surrounding vicinity [10] is at the bottom of the
residential areas with the second smallest rental apart- rental rankings. Overall, the median asking rent in the area
ments available in the city. Bruns­wick’s northernmost area stands at €5.80 per square metre.
between Harxbüttel, Bienrode, and Bevenrode [03] is re-
mote from the city centre and comprises a group of resi-
dential areas of average attractiveness. The scattered ar-
eas of Geitelde, Broitzem, Stiddien, Rüningen, Gartenstadt,
and Am Südsee [02] in the southwest are partly rural and

RENTAL GROWTH POSSIBLE BUT THE MARKET IS NOT EXPECTED TO TIGHTEN SIGNIFICANTLY

Bruns­wick has enjoyed dynamic growth in population, employment and purchasing power for a number of years.
Accordingly, the city is witnessing increasing rental growth, albeit from a very low base. As a business location,
Bruns­wick is solid and future-oriented, which is likely to result in high demand in the future. However, the rental
market is not expected to tighten significantly. Home seekers in Bruns­wick have too many options to build a home
in the city region or to move out to the surrounding areas. However, if the trend towards city living continues in
Bruns­wick, a supply shortage in the city centre may at least drive rents up significantly further there.

034
 CITY PROFILE n B R U N SW I C K

aVeraGe asKinG renTs in CiTY areas 2015

03

13
08

12
11 07 06

09
14
01

10

05

02

04

Median in €/m²/month

5.80 – 6.63 6.64 – 6.77 6.78 – 6.98 6.99 – 7.06 7.07 – 7.44 7.45 – 7.68 7.69 – 8.04 8.05 – 8.42

035
CITY PROFILE n BREMEN

Bremen: Rents remain moderate in

the Hanseatic City
In Germany’s 10th-largest city, housing is traditionally less expensive than in other metropolises.
However, due to the growth of the city’s economy and population, here too, supply is becoming
increasingly scarce and expensive – albeit at a more leisurely pace.

Bremen can look back on a rich history as a diocesan and
mercantile city. The city joined the Hanseatic League in
the 13th century, growing in economic strength and de-
veloping into a port and trade city in which international
trade, shipbuilding, and the steel industry have played a
significant role. The structural change that commenced in
the 1970s resulted in population declines and a sharp rise
in unemployment in the city, although there have been
positive trends in recent years. The number of employees
subject to social security contributions, for example, in-
creased by 11.5 per cent between 2004 and 2014. Bremen
owes this growth, inter alia, to its port, industries such
as aviation and aerospace, wind energy, maritime busi-
ness and logistics as well as classic industrial large-scale
manufacturers of cars, food, and consumables. The popu-
lation is also growing slightly. At the end of 2014, the city
had 551,767 inhabitants; a 1.4 per cent increase compared
with the end of 2011. This is exclusively attributable to
Bremen’s positive net migration. According to the popula-
tion forecast for the period from 2012 to 2030, the popu-
lation is expected to fall minimally. However, the number
of households is expected to rise by 1.2 per cent.
AN EAST-WEST AND A NORTH-SOUTH DIVIDE
The growth of the economy and population also had a
modest impact on the housing market in 2015. The me-
dian asking rent per square metre grew by just 0.4 per
cent in 2015; significantly more weakly than in the pre-
vious year (+5.0 per cent). At €7.21 per square metre,
Bremen remains in just 16th place among the 29 cities
studied for this report. In terms of population, however,
the city is the 10th largest in Germany. Bremen has never
had a very expensive property market. Purchasing power
and income do not reach the high values of similarly large

036
 CITY PROFILE n BREMEN

Bremen processes and handles the largest volume of coffee in the whole of
Germany. Almost every second coffee bean processed in Germany passes through
the port of Bremen.

cities such as Frankfurt, Stuttgart and Dusseldorf. Fur-
thermore, prospective tenants have good alternatives
in the wide surrounding areas of Lower Saxony. For all
of these reasons, rents are not expected to grow signifi-
cantly going forward.
Within the city, there are quite significant differences
between local asking rents. Essentially, there is an east-
west divide as well as a north-south divide, whereby the
areas with the highest asking rents are concentrated
in the city centre and to the east and the lowest are in
the north of Bremen. The highest median asking rent
of €8.67 per square metre is found in Bremen city cen-
tre [08], which also witnessed the strongest increase in
the city in 2015 of 8.4 per cent. The main advantage of the

037
CITY PROFILE n BREMEN
submarket is its central location, although there are cer-
tain disadvantages in terms of quality of living. The area is
characterised by service providers and suffers from heavy
traffic in some parts. The living environment is relatively
crowded and noisy by Bremen’s standards. The second
highest rents are found in the Schwachhausen [14] area,
which is close to the city centre as well as being adjacent
to the Bürgerpark, the Rhododendronpark, the Stadt-
waldsee lake, and other green oases. Rental apartments
in Schwachhausen are mostly found in smaller apart-
ment buildings, often surrounded by landscaped areas. It
is almost self-evident that, on average, the second larg-
est apartments in the city are found in Bremen’s prestige
district, where the average apartment size is 73.3 square
metre. The average size of apartments on the market is
only greater in the relatively small Oberneuland [10] mar-
ket. The combination of high asking rents and large living
spaces in Schwachhausen produces particularly high total
costs for tenants seeking to move into a new apartment.
However, overall, the relatively high rental costs com-
bined with an extensive supply in the district have damp-
ened rental growth. In each of the last three years, the
median asking rent in Schwachhausen has only risen by
around 1 per cent.
POPULAR MARKETS CLOSE TO THE CITY CENTRE
The third-highest median asking rent in the city of
€8.31 per square metre is found in the Östliche Vor-
stadt [13] of Bremen, which are surrounded by the city
centre, the River Weser, the railway line to the main sta-
tion, and St.-Jürgen-Straße. The area is dominated by the
narrow “Bremer Haus” terraced houses with small gar-
dens, which often date back to the Imperial Era. The area
close to the city centre is highly urbane in character. The
social structure has a vibrant mix.
038
In terms of the median asking rent, Findorff [03] ranks
fourth with an average of €8.25 per square metre. The dis-
trict is situated to the north of the city centre and to the
west of the Bürgerpark. This area, too, is characterised
by Bremer Haus architecture, although often more recent
than that in the eastern suburbs. Near to the Utbremer
Ring, there are numerous multi-storey buildings from the
post-war period. Overall, the smallest rental apartments
on the Bremen market are found in Findorff along with the
Neustadt [09] and Woltmershausen [18]. The average
apartment size in these areas is just 58 square metres.
DEVELOPMENT IN THE PORT AREA
The next districts in the city centre rental rankings, with
asking rents between €7.66 and €7.90, are Oberneu-
land [10], Neustadt [09], and Horn-Lehe [06] including
the University of Bremen, all of which are some distance
from the city centre. Neustadt is the closest to the centre
on the western side of the River Weser between the city
centre and the airport.
Walle [17] is a special case. The area is situated to the
north of the centre and is traditionally regarded as a port,
industry and working-class district. However, more and
more high-quality living space is emerging in the port
area, making this district the second most expensive
prime market segment in Bremen. Asking rents in the
most expensive decile of accommodation on the mar-
ket start at €12.00 per square metre. However, the me-
dian rent per square metre across all apartments on the
market in the area stagnated in 2015 following a strong
increase in the previous year and remains at €7.50 per
square metre.
 CITY PROFILE n BREMEN

DISTRIBUTION OF ASKING RENTS IN BREMEN 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

5.1 6.1 40.2 39.1 36.0 34.0 13.4 14.5 3.8 5.1 1.5 1.2
50%

40%

30%

20%

10%

0%

under €5.00 €5.00 to €6.99 €7.00 to €8.99 €9.00 to €10.99 €11.00 to €12.99 €13.00 and over

The proportion of high-priced rents starting from €9.00 in Bremen in 2015 was

only slightly above the previous year’s figure. Three quarters of asking rents fall
within a price range of €5.00 to €8.99.

In all other districts of Bremen, median asking rents are
significantly below the overall average value in the city
of €7.21 per square metre. Among these areas, the high-
est median asking rent is found in Woltmershausen [18],
to the west of the city centre and on the other side of
the River Weser, at €6.75 per square metre, followed by
Obervieland [11] in the south of the city. The areas of Os-
terholz [12] and Vahr [15] are also relatively decentral-
ised, in the southeast of the city. Osterholz was previously
disadvantaged by the high-rise area of Tenever. How-
ever, the structure of the area has since been improved by
demolitions of multi-storey buildings, giving way to a bet-
ter maintained living environment. Median asking rents in
Osterholz have risen by 17.4 per cent over the last three
years. Vahr is known as a monotonous residential area
from the post-war period. However, it has now integrated
itself well into the city and is popular as a low-priced and
green residential location.

Key Figures for the housing market

Bremen Federal State Bremen Germany

Average asking rent 2015 in €/m²/month 7.21 6.57 6.51

Average size of apartments on offer 2015 in m² 64.0 63.3 68.0
Vacancy rate in apartment buildings 2014 in % 2.2 3.1 3.0
Newly finished apartments1) per 1,000 residents 2014 2.0 1.8 2.7
Of which are in apartment buildings 2)
1.4 1.2 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

039
CITY PROFILE n BREMEN

Asking Rents in BREMEN 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ]
Blumenthal 466 65.5 5.63
[ 02 ]
Burglesum 348 64.0 6.08
[ 03 ]
Findorff 344 58.0 8.25
[ 04 ]
Gröpelingen 445 58.7 5.67
[ 05 ]
Hemelingen 249 60.0 6.16
[ 06 ]
Horn-Lehe 382 68.0 7.66
[ 07 ]
Huchting 234 64.2 6.22
[ 08 ]
Mitte 452 63.3 8.67
[ 09 ]
Neustadt 776 58.0 7.89
[ 10 ]
Oberneuland 100 85.5 7.90
[ 11 ]
Obervieland 189 68.4 6.67
[ 12 ]
Osterholz 324 68.2 6.52
[ 13 ] Östliche Vorstadt 760 60.0 8.31
[ 14 ]
Schwachhausen 1,057 73.3 8.65
[ 15 ]
Vahr 448 63.0 6.48
[ 16 ]
Vegesack 529 68.0 6.00
[ 17 ]
Walle 455 65.0 7.50
[ 18 ]
Woltmershausen 206 58.0 6.75
Bremen average 7,764 64.0 7.21

Bremen’s lowest-priced districts, with average figures be- rental ranking. With an average of €5.63 per square me-
low €6.10 per square metre, are found in the far north of tre, landlords’ quoting prices on new lettings there are the
the city. In the traditionally industrial suburbs of Burgle- lowest in Bremen.
sum [02], Vegesack [16], Gröpelingen [04], and Blumen-
thal [01], many apartments are still offered for less than
€5.00 per square metre. In Gröpelingen, asking rents de-
clined slightly in 2015 following a 6.5 per cent increase
in the previous year. Blumenthal is at the bottom of the

MODERATE RISES IN RENTS FROM A LOW BASE

Bremen is not just a green city, but also a relatively inexpensive city in which to live. The city ranks just 16th in
terms of the median asking rent among the 29 cities featured in this report. However, the positive economic and
population growth has also led to a rise in demand for rental apartments in Bremen. Median asking rents per
square metre have recently risen by an average of some 3 per cent per year. Stronger increases have been partic-
ularly evident in the inexpensive parts of the city, while rental growth in the already expensive districts, excluding
the city centre, has recently been weak. The least expensive property on the market continues to be found in the
north of the city.

040
 CITY PROFILE n BREMEN

aVeraGe asKinG renTs in CiTY areas 2015

01

16

02

04
06

17

18 03 10
14

08 15
13
09
07 05

11 12

Median in €/m²/month

5.63 – 6.01 6.02 – 6.17 6.18 – 6.49 6.50 – 6.71 6.72 – 7.60 7.61 – 7.89 7.90 – 8.30 8.31 – 8.67

041
CITY PROFILE n C H E M N I TZ

Chemnitz: Glimmer of hope for the market

but rents remain very low
Saxony’s third largest city is enjoying net migration and population growth for the first time
in a long time. This is also reflected in the residential market, although the market remains
characterised by a large oversupply and high vacancy rate.

For some 20 years, the population and employment mar-
ket figures for the city of Chemnitz were predominantly
negative. The population fell by around 50,000 between
1990 and 2010 while the unemployment rate reached
a peak of 19.9 per cent in 1998. In recent times, how-
ever, the trends have reversed. Since 2006, the city has
regularly recorded net migration once again. The popula-
tion rose by 1.2 per cent from the end of 2011 to the end
of 2014. Employment growth in Chemnitz has also been
positive. The city’s local and regional economy is primar-
ily characterised by sectors of heavy industry, particu-
larly toolmaking, textiles, automotive manufacturing, and
mechanical engineering. The solar industry has also dis-
covered the city as a production location and the local
research landscape, in micro-systems technology for ex-
ample, has seen positive growth. The number of employ-
ees subject to social security contributions increased by
6.3 per cent between 2004 and 2014. The unemployment
rate averaged 9.9 per cent in 2014; almost half the peak
level reached in 1998.
VACANCIES SLOWLY DECLINING
The trend reversal has only slowly manifested itself in the
residential market. Chemnitz recorded the lowest me-
dian asking rent per square metre and month of all 29 cit-
ies studied at €5.00. At the same time, the vacancy rate
remained high at 9.2 per cent in 2014, providing apart-
ment-seekers with an ample supply, at least in terms of
quantity. However, more recently, the vacancy rate has
fallen moderately but continually, while the average me-
dian asking rent has also risen slightly. Nevertheless, the
market remains far from balanced in terms of supply and
demand. Even if the economy and population continue to
expand, the oversupply is likely to persist for a long time.

042
 CITY PROFILE n C H E M N I TZ

After losing inhabitants for many years in an exodus from the city, net migration
has now been positive for nine years in succession. In 2014, net migration to the city
totalled more than 2,500 people.

The positive trend is also at risk. The greatest obstacle to
long-term favourable demographic growth is the ageing
population in the city. The proportion of inhabitants aged
60 and over stood at 35 per cent at the end of 2014. By
way of comparison, the German average is just 27.4 per
cent. All other age groups are under-represented com-
pared with the national average in Germany. Only the
proportion of 18-30-year-olds in Chemnitz is in line with
national figures. Chemnitz is also bottom of the rankings
in terms of population and household projections for the
29 cities analysed. Not only is the population expected to
contract by 17.5 per cent by 2030, the number of house-
holds is also projected to decline by 15.4 per cent (Ger-
many: +3.0 per cent).

043
CITY PROFILE n C H E M N I TZ
NARROW RANGE OF RENTS WITHIN THE CITY
The differential between rents in the various districts of
Chemnitz is lower than in other cities. Asking rents in the
least and most expensive areas of the city differ mini-
mally by just €0.86 per square metre. The highest me-
dian asking rents in 2015 were found in the area compris-
ing Rabenstein, Siegmar, and Reichenbrand [10] in the
west of the city. With its attractive villas and old build-
ings, good transport links to the city centre and a variety
of recreation areas, such as the Rabenstein reservoir and
the Rabensteiner Forest, this is one of the most sought-
after residential locations in the city. However, by national
comparison, landlords’ asking rents of €5.37 in the area
are somewhat modest.
Next in the rental rankings is another area in the outskirts,
also in the western part of Chemnitz. This area com-
prises the somewhat rural suburbs of Grüna and Mittel-
bach [07] with a median asking rent of €5.32 per square
metre. Owing to the small-scale development in this
area, however, supply of rental apartments is someone
low, meaning that quoting figures have not shown any
clear trend in recent years. The area comprising Adels-
berg and Gablenz [01] in the east of the city is above av-
erage for Chemnitz in terms of median asking rents. The
highlight of Gablenz is the garden city development, built
in the early 20th century and since refurbished in line
with historic preservation directives, which features large
amounts of green space, a high quality of urban living
space and impressive architecture. The district also in-
044
cludes an area of Plattenbauten (slab construction) from
the former East Germany, although the majority of this
comprises low-rise rows of housing. Located to the east
of Gablenz is Adelsberg, an area characterised by smaller
residential areas and villages.
MODERATE DEMAND FOR ART NOUVEAU PROPERTY
Sixth in the local rental statistics is an area near the
city centre; the historic and exclusive residential area
of Kaßberg [09] immediately west of the city centre.
The area registered a median asking rent of €5.08 per
square metre in 2015, representing an increase of a mere
€0.01 compared with the previous year. The Kaßberg area,
which emerged in the second half of the 19th century and
retains its original image in large areas, is one of the larg-
est areas from the Wilhelminian and Art Nouveau periods
in Germany. Several hundred houses are jointly protected
as a conservation area.
Next in the rankings is the area comprising Bernsdorf and
Lutherviertel [03], southeast of the city centre. The area is
characterised by residential development from the inter-
war and post-war periods and has the largest rental mar-
ket in the city in terms of properties listed. The median
asking rent in 2015 stood at €5.01 per square metre which,
like rents in Kaßberg, rose by only €0.01 compared with
the previous year.
To the west of Kaßberg are the areas of Altendorf,
Schönau, and Rottluff [02], where asking rents also aver-
age €5.01 per square metre. Altendorf is characterised
by a large number of post-war apartment buildings, while
Schönau comprises a mix of village structures, owner-­
occupier areas and commercial areas typical of Chemnitz.
Rottluff, to the north of Schönau fits a similar description.
 CITY PROFILE n C H E M N I TZ

DISTRIBUTION OF ASKING RENTS IN CHEMNITZ 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

7.5 6.5 42.7 41.1 42.1 44.2 6.1 6.6 1.3 1.3 0.2 0.3
50%

40%

30%

20%

10%

0%

under €4.00 €4.00 to €4.99 €5.00 to €5.99 €6.00 to €6.99 €7.00 to €7.99 €8.00 and over

Asking rents in Chemnitz do not show a great deal of variance. Almost 85 per cent
of residential lettings are advertised between €4.00 and €5.99 per square metre.
Asking rents above €7.00 are extremely rare.

The median asking rent per square metre in Schloßchem-
nitz [12], to the northwest of the city centre, stands at ex-
actly €5.00; the overall average for the city. The area is
characterised by a mix of residential and commercial uses
as well as cultural and leisure amenities. The same rental
levels are found in the area comprising Kappel, Kappell­
en­berg, Stelzendorf, Markersdorf, Alt-Chemnitz, Harthau,
Reichenhain, and Erfenschlag [08] as well as in the cen-
tre [15]. The city centre was heavily damaged in the war
and was redeveloped to a low density in the former GDR
era, so that the urban qualities of other city centres did
not develop here. Subsequent densification with shopping
centres has not done much to increase the attractiveness
of the centre as a residential location. Asking rents in the
northern suburbs of Borna-Heinersdorf, Fürth, Ebersdorf,
Hilbersdorf, Glösa-Drainsdorf [04], and Wittgensdorf [14],
as well as in the far south of the city in Einsiedel and Klaf-
fenbach [05], are below the citywide average.

Key Figures for the housing market

Chemnitz Saxony Germany

Average asking rent 2015 in €/m²/month 5.00 5.39 6.51

Average size of apartments on offer 2015 in m² 59.0 60.2 68.0
Vacancy rate in apartment buildings 2014 in % 9.2 6.5 3.0
Newly finished apartments1) per 1,000 residents 2014 1.7 1.5 2.7
Of which are in apartment buildings 2)
0.8 0.6 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

045
CITY PROFILE n C H E M N I TZ

Asking Rents in CHEMNITZ 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ] Adelsberg, Gablenz 438 51.0 5.29

[ 02 ] Altendorf, Rottluff, Schönau 566 57.8 5.01
[ 03 ] Bernsdorf, Lutherviertel 1,488 57.5 5.01
[ 04 ] Borna-Heinersdorf, Furth, Ebersdorf, Hilbersdorf, Glösa-Draisdorf 1,158 59.0 4.89
[ 05 ] Einsiedel, Klaffenbach 244 56.0 4.80
[ 06 ] Euba, Kleinolbersdorf-Altenhain 24 70.0 5.09
[ 07 ] Grüna, Mittelbach 90 61.0 5.32
[ 08 ] Kappel, Kapellenberg, Stelzendorf, Markersdorf, Alt-Chemnitz, 1,004 57.0 5.00
Harthau, Reichenhain, Erfenschlag
[ 09 ]
Kaßberg 1,087 62.4 5.08
[ 10 ] Rabenstein, Siegmar, Reichenbrand 243 59.8 5.37
[ 11 ]
Röhrsdorf 33 68.5 5.20
[ 12 ]
Schloßchemnitz 1,022 59.9 5.00
[ 13 ] Sonnenberg, Yorckgebiet 1,445 59.6 4.51
[ 14 ]
Wittgensdorf 47 58.0 4.69
[ 15 ]
Centre 547 63.0 5.00
Chemnitz average 9,436 59.0 5.00

The area comprising Sonnenberg and Yorckgebiet [13] ings that have not been refurbished since the former GDR
to the east of the city centre was at the lower end of the era and has a high vacancy rate and numerous demoli-
rental scale in Chemnitz, in keeping with the previous year, tions. Immediately to the east is Yorckgebiet, known col-
with a median asking rent of €4.51 per square metre, re- loquially as “Yorckmassiv” in reference to large concrete
flecting a decrease of 0.2 per cent compared with the pre- slabs used in the development of the area in the 1970s.
vious year. Sonnenberg is a densely developed area dating
from the Wilhelminian period with many narrow back-
yards, few green spaces and little appreciation as a resi-
dential location despite its proximity to the city centre and
railway station. The area features many residential build-

RAYS OF HOPE AFTER A LONG CRISIS

The population, employment and the residential market in Chemnitz have all stabilised after a prolonged crisis.
Indeed, there is even an upward trend at present. However, rental levels remain low and the vacancy rate high.
Positive growth is currently witnessed predominantly in green suburban areas, often enhanced by historic devel-
opment. Conversely, central locations are of less interest to many people in Chemnitz. A growing problem in the
longer term is the significant ageing of the city’s population and the declining number of households. The latter
threatens to cause further population decreases, although the current positive net migration may offset the nega-
tive natural population development.

046
 CITY PROFILE n C H E M N I TZ

aVeraGe asKinG renTs in CiTY areas 2015

14

04

11

12

13
15
09 06
02
01
10
03

07

08

05

Insufficient number of cases

Median in €/m²/month

4.51 – 4.77 4.78 – 4.95 4.96 – 5.00 5.01 – 5.01 5.02 – 5.06 5.07 – 5.15 5.16 – 5.30 5.31 – 5.37

047
CITY PROFILE n CO LO G N E
Cologne: Economic growth and rents
on the rise
The largest city on the Rhine draws on its advantageous location, dynamic business sectors and
positive urban characteristics. However, the strong, long-term rental growth in the city centre has
now subdued, while the outskirts are catching up.
As one of the oldest cities in Germany, Cologne can look
back over a history of some 2,000 years. With its favour-
able location on the Rhine and major trade routes, Ger-
many’s fourth-largest city was able to achieve national
importance at an early stage and was the largest city in
German-speaking territory in the High Middle Ages. It was
also during this period that the foundation stone was laid
for the most famous landmark in the city today, Cologne
Cathedral, although construction would not be completed
for several centuries. Today, the city is known to visitors
and inhabitants alike as a vibrant and cosmopolitan me-
tropolis, whose carnival, breweries and dialect are well
known far beyond the city limits. Cologne’s modern eco-
nomic structure is diverse. The most important sectors in
the city include vehicle manufacturing, energy, chemicals,
food, publishing, media, and insurance. Cologne is also
home to one of the largest universities in the state.
048
MOST EXPENSIVE CITY IN THE FEDERAL STATE
The city on the Rhine has enjoyed significant population
growth for a number of years. The population rose sharply
by 3.3 per cent from the end of 2011 to the end of 2014 and
has now passed the million mark, standing at 1,046,680.
Projections, which are now considered too conservative
in some respects, indicate further growth for the com-
ing years. Compared to 2012 levels, the population is ex-
pected to grow by 1.9 per cent by 2030, while the num-
ber of households is set to increase by as much as 5.4 per
cent. The rental apartment market in Cologne clearly re-
flects the consequences of continued growth. The resi-
dential vacancy rate in Cologne fell from 2.2 to 1.1 per cent
between 2009 and 2014. Asking rents continue to rise.
The median of €9.86 per square metre is the highest of
all cities in North Rhine-Westphalia. On the whole, land-
lords’ asking rents on new lettings in 2015 were at least
 CITY PROFILE n CO LO G N E

Cologne’s carnival season generates average revenues of more than

€460 million per year. This amount is almost equivalent to the annual turnover
of FC Bayern Munich.

2.0 per cent higher compared with the previous year in
11 of the 19 districts of Cologne studied. Central locations
and exclusive residential areas dominated the high-priced
neighbourhoods in Cologne, with a median asking rent
above €10.00 per square metre. The areas around Neu­
stadt North (Belgisches Viertel, Friesenviertel, Stadtgarten,
Bahn­hof West) and Neustadt South [15], which wraps half-
way around the Altstadt (Old Town) district to the west
and south, lead the charts. Many of the roads are con-
gested and the back courtyards crowded. However, buyers
are willing to accept such limitations to benefit from the
central location and urban lifestyle. Even the least expen-
sive decile of apartments here reached asking rents of up
to €9.38 per square metre in 2015.

049
CITY PROFILE n CO LO G N E
CITY CENTRE: BEST LOCATION, SOME
DISADVANTAGES
The median asking rent in the adjacent business district of
the city comprising the cathedral area, Neumarkt and Heu-
markt, Schildergasse, Hoher Straße, Alter Markt, and the
southern part of the Altstadt [01], including the Griechen­
markt­viertel, Kapitol­viertel and Panta­leons­viertel areas,
stood at €11.29 per square metre; €0.53 lower than in
Neustadt North and Neustadt South. The equivalent fig-
ure for another part of Altstadt North and Neustadt North
comprising the main train station, Eigelsteinviertel, and
the Agnesviertel, Mediapark, and Flora [02] areas, which
form part of Neustadt North, was a further €0.23 lower at
€11.06. These areas are centrally located, and development
density is often extremely high. This has some negative
impact on the value of residential property since the direct
surroundings are often characterised more by commercial
than residential uses.
URBAN NEIGHBOURHOODS: GREEN AND CLEAN
Two green areas in western and southwestern Co-
logne, featuring villas and well-kept apartment build-
ings, show the same median asking rents as those in the
City submarket areas. One of these is the area compris-
ing Müngersdorf, Braunsfeld, and Lindenthal (West) [14].
Development is patchy, leafy, relatively low in density and
well maintained. However, the district is not limited to
single-family houses. There were more than 900 listings
in the lively rental market during the reporting period. The
median asking rent here stood at €11.20 per square me-
tre in 2015. This is evidently a ceiling for the time being
since the previous year’s figure was 0.4 per cent higher.
The other area comprises neighbouring Klettenberg and
050
Sülz [11], where landlords demanded an average of €11.16.
The districts cited connect the southwest of the city to
the inner green belt. The cityscape is dominated by ur-
ban perimeter block development, commonly only with
moderate build height. It is possible to enjoy inner-city
life without the disadvantages of core areas, albeit with
small-scale and locally oriented infrastructure. The south-
eastern area consisting of Zollstock, Raderberg, Bayen-
thal, Marienburg, Rodenkirchen, and Hahnwald [19] is
regarded as more distinguished and exclusive. However,
there are also large amounts of simple post-war construc-
tion and residential high-rises and the districts are slightly
further out of the centre, resulting in a median asking rent
slightly below that of Klettenberg and Sülz at €10.61 per
square metre.
A RISING STAR WITH INDUSTRIAL TRADITION
Two former industrial districts close to the city centre are
now more expensive than Zollstock and its surround-
ing vicinity. In Deutz [06], on the right bank of the Rhine,
the median rent now stands at €10.76 per square metre.
Many residents of and visitors to Cologne know Deutz
only as a place of transit, trade fairs, administrative build-
ings and, in the Cologne Arena, an event venue on the
“wrong side” of the Rhine. However, it is also in places
a rather homely residential area, albeit somewhat plain
due to its many post-war buildings. The lack of beauty is
compensated by its proximity to the Altstadt district just
across the Rhine bridges as well as the excellent trans-
port infrastructure. Only slightly less expensive, with a
median asking rent of €10.70, is the formerly industrial
and now gentrified area comprising Ehrenfeld and Neu-
ehrenfeld [07]. In the north of the city, the area compris-
ing Niehl, Riehl, Weidenpesch, and Longerich [16] shows
a median asking rent of exactly €10.00.
 CITY PROFILE n CO LO G N E

DISTRIBUTION OF ASKING RENTS IN COLOGNE 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

2.2 1.9 17.5 14.3 34.4 35.4 28.5 30.9 12.5 12.7 4.8 4.8
40%

30%

20%

10%

0%

under €6.00 €6.00 to €7.99 €8.00 to €9.99 €10.00 to €11.99 €12.00 to €13.99 €14.00 and over

Cologne is among the most expensive German markets. Almost half of apartments
on the market in 2015 cost more than €10.00 per square metre. The proportion
priced below €8.00 contracted significantly.

Cologne’s districts with median asking rents below
€10.00 per square metre are currently limited to those
with structural or statistical peculiarities. Mühlheim [13],
on the right bank of the Rhine, used to be heavily indus-
trial in character and was still recently regarded an insider
tip. Between 2012 and 2015, the district saw the highest
increase in asking rents in the city of 19.5 per cent. The
7.0 per cent increase in 2015 alone also represented the
strongest growth across all areas of Cologne. Landlords
are now demanding an average of €9.67 per square metre.
Dynamic growth was also seen in the area between Deutz
and the eastern outskirts comprising Kalk, Höhenberg,
Vingst, Humboldt-Gremberg, Poll, Ostheim, Rath-Heumar,
Merheim, and Brück [10], with an increase of 4.1 per cent
to €8.82 per square metre.
Only two areas of Cologne reported a median asking rent
significantly below €8.50 per square metre in 2015. The
areas in question were Cologne North [17], including the

Key Figures for the housing market

Cologne North Rhine-Westphalia Germany

Average asking rent 2015 in €/m²/month 9.86 6.14 6.51

Average size of apartments on offer 2015 in m² 67.0 69.9 68.0
Vacancy rate in apartment buildings 2014 in % 1.1 3.1 3.0
Newly finished apartments1) per 1,000 residents 2014 3.3 2.4 2.7
Of which are in apartment buildings 2)
2.5 1.3 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

051
CITY PROFILE n CO LO G N E

Asking Rents in Cologne 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ] Altstadt North (Dom, Neu-, Heumarkt, Schildergasse, 450 58.0 11.29

Hohe Straße, Alter Markt), Altstadt South
[ 02 ] Altstadt North (Central train station, Eigelstein), 464 63.0 11.06
Neustadt North (Agnesviertel, Mediapark, Flora)
[ 03 ] Bickendorf, Ossendorf, Vogelsang, Bocklemünd-Mengenich, 609 73.0 9.20
Lövenich, Widdersdorf, Weiden (West)
[ 04 ] Bilderstöckchen, Pesch, Lindweiler, Heimersdorf 352 67.5 8.87
[ 05 ] Buchforst, Buchheim, Holweide 572 65.9 8.53
Deutz
[ 06 ] 195 65.0 10.76
[ 07 ] Ehrenfeld, Neuehrenfeld 699 62.0 10.70
[ 08 ] Flittard, Stammheim, Höhenhaus, Dünnwald, Dellbrück 576 70.0 8.58
[ 09 ] Junkersdorf, Marsdorf, Weiden (East) 460 76.0 9.89
[ 10 ] Kalk, Höhenberg, Vingst, Humboldt-Gremberg, Poll, Ostheim, 1,460 65.0 8.82
Rath-Heumar, Merheim, Brück
[ 11 ] Klettenberg, Sülz 601 61.0 11.16
[ 12 ] Meschenich, Immendorf, Godorf, Sürth, Weiß 413 77.0 9.49
Mülheim
[ 13 ] 432 60.0 9.67
[ 14 ] Müngersdorf, Braunsfeld, Lindenthal (West) 911 70.0 11.20
[ 15 ] Neustadt North (Belgian Quarter, Friesenviertel, Stadtgarten, 1,130 63.0 11.82
Western train station), Neustadt South
[ 16 ] Niehl, Riehl, Weidenpesch, Longerich 998 65.0 10.00
North
[ 17 ] 353 72.0 8.00
Southeast
[ 18 ] 1,089 69.1 8.06
[ 19 ] Zollstock, Raderb., Bayenthal, Marienb., Rodenkirchen, Hahnwald 928 74.0 10.61
Cologne average 12,692 67.0 9.86

satellite town of Chorweiler, and the southeast of the

city [18] near the airport. Both are suburban areas with
many post-war buildings, which have neither strong ur-
ban nor scenic qualities.

A MARKET WITH GROWTH POTENTIAL – AND CERTAIN RISKS

The vibrant and cosmopolitan city on the Rhine is a highly attractive place to live and work for current and future
inhabitants, tourists, and investors. The population of Cologne has risen accordingly for years and the residential
market is characterised by significant surplus demand. Today, Cologne is the most expensive city in North Rhine-
Westphalia in terms of asking rents and has left the state capital Dusseldorf far behind. However, despite the al-
ready high levels, asking rents in the city continue to rise and the average figure is approaching the €10.00 mark,
which is almost at the level of Hamburg. In view of the positive conditions, the trend to date is not expected to
reverse during the coming years.

052
 CITY PROFILE n CO LO G N E

aVeraGe asKinG renTs in CiTY areas 2015

17

04 08

16

03 13

05
07 02

14 01 06 10
09

15

11
19

12 18

Median in €/m²/month

8.00 – 8.54 8.55 – 8.84 8.85 – 9.42 9.43 – 9.89 9.90 – 10.63 10.64 – 10.91 10.92 – 11.19 11.20 – 11.82

053
CITY PROFILE n D O RTM U N D
Dortmund: Buoyant market with rising
asking rents
The transformation from an industrial metropolis to a service location is also reflected in the housing
market. Asking rents are rising from a relatively low base in both attractive locations in the south as
well as more modest districts in the north of the city.
Although the industrial core is still of importance to the
city, the structural change from a traditional metals and
mining city in the Ruhr area into a services centre is par-
ticularly striking in Dortmund. Former industrial sites are
giving way to numerous ambitious development projects,
such as the Phoenix-See and its surroundings on a former
steel plant site. The dominant sectors in Dortmund to-
day are commerce, healthcare and logistics. The number
of employees subject to social security contributions in-
creased by 12.8 per cent between 2004 and 2014, which
was primarily driven by the afore-mentioned sectors. The
university and adjacent technology park, one of the oldest
and most successful in Germany, play an important role
in this context. Following years of decline, the population
in Dortmund has been rising again since 2012, reaching
580,511 inhabitants at the end of 2014. The unemploy-
ment rate, which stood at 17.5 per cent in 2005, consoli-
054
dated to 13 per cent between 2009 and 2014. These de-
velopments are also boosting the housing market. The
median asking rent per square metre per month increased
by 2.9 per cent in 2015. However, the median of exactly
€6.00 per square metre is still rather low, especially con-
sidering that Dortmund is Germany’s eighth largest city
by population. The vacancy rate decreased from 3.1 per
cent to 2.6 per cent between 2009 and 2014.
CENTRE AND SOUTHWEST LEADING THE CHARGE
The distribution of rents within the Dortmund city area
show two prominent trends. Asking rents are, for the
most part, significantly higher in central locations com-
pared with peripheral areas and are also higher in the
rather loosely developed areas to the south and east than
they are in the more industrial north and west of the city.
The highest median asking rent of €7.06 per square me-
 CITY PROFILE n D O RTM U N D

Dortmund’s Westenhellweg is one of the busiest shopping streets in Germany.

Statistically, almost one in two Dortmund residents uses the Westenhellweg once
per day on weekends.

tre is recorded in the city centre [03] and, heading south
and southwest, the district of Kreuzviertel and residential
areas to the east of the Westfalenhalle as well as the Kai-
serbrunnen district to the east of the city centre. The local
infrastructure and transport links are excellent in these
areas. The largely preserved perimeter block development
provides the highest quality of urban living in the city.
The mostly leafy and, in parts, scenic southwest com-
prising the districts of Hombruch, Renninghausen, Barop,
Eichlinghofen, and Kirchhörde [06] has worked its way
into second place in the rankings. The median asking rent
here rose by 4.5 per cent to €6.97 in 2015; the second
highest increase in the city. This area is largely dominated
by single-family houses and small apartment buildings.

055
CITY PROFILE n D O RTM U N D
The former mining district of Hombruch has particularly
good transport links by tram and S-Bahn. Dortmund Uni-
versity and the renowned technology park are located on
the western edge of this area.
The area to the east of the city centre comprising the
eastern city centre, Wambel, Körne, and the popular Gar-
tenstadt area on both sides of the Westfalendamm [10]
arterial route shows the third-highest asking rent of
€6.44 per square metre. This location is less central than
the prime locations of the western city centre. Develop-
ment in Körne is not particularly dense, while Wambel is
partly suburban in character with large amounts of green
space but also with a somewhat more limited infrastruc-
ture than in the western part of the city centre.
FROM STEELWORKS TO A LAKESIDE LANDSCAPE
The south of Dortmund includes the districts of Hörde,
Syburg, Wellinghofen, Holzen, and Loh [07]. The me-
dian asking rent of €6.37 per square metre in the area is
the fourth highest in Dortmund. Apart from the centre of
Hörde with its small-town atmosphere, the area is domi-
nated by scattered apartment blocks and single-fam-
ily houses. However, Clarenbach also comprises various
high-rise buildings constructed in the 1970s. The south of
this area is very rural, with village-like settings as well as
beautiful hills and slopes near the Ruhr. Hörde is the set-
ting of Dortmund’s most spectacular development pro-
ject. The former Hoesch site has been transformed into
the Phoenix-See lake along with an attractive surrounding
residential area, including numerous villas on the banks of
the lake, which has been sought-after since the re-devel-
opment. The area is highly likely to witness further posi-
tive development over the coming years, with some prop-
erties in the area already listed at asking rents of more
than €10.00.
056
The districts of Aplerbeck, Schüren, Sölde, Sölderholz,
Berghofen, and Benninghofen [01] are located further to
the east in the south of Dortmund. Again, development is
dominated by a mix of leafy residential areas, commercial
uses and open countryside. The development density is
mainly fragmented with single and two-family houses and
terraces. There are also smaller apartment buildings with
two to four storeys, often in ribbon developments. The
median asking rent of €6.02 per square metre reflects the
distance from the city centre and the often suburban and
scattered infrastructure.
The far eastern perimeter of the city comprises the dis-
tricts of Brackel, Wickede, Asseln, Kurl, and Husen [02].
The area is primarily characterised by sprawling estates
and roads interspersed with commercial uses lined by
fields and meadows. The atmosphere is neither urban nor
rural in character and the median asking rent of €5.73 is
below the average for the city.
All of the above areas of Dortmund are situated in the
central, southern, and eastern areas of the city. The fol-
lowing are located to the north and west. Pit closures in
the former mining districts to the north of the city centre
are now events of the distant past. Former workers’ vil-
lages serve as a reminder with their historical flair and
careful modernisation. At the top of the rental rankings in
this part of the city is the area comprising Eving, Brech-
ten, and Lindenhorst [05] with a median asking rent of
€5.80 per square metre. This is followed by the residen-
tial areas of Huckarde, Jungferntal, Deusen, Kirchlinde,
Hangeney, Marten, and Germania [08] to the north-
west of the centre. The historical development of the city
around mines, factories and villages is very typical for the
Ruhr area. The next highest asking rents are found in the
area comprising Lütgendortmund, Bövinghausen, and
 CITY PROFILE n D O RTM U N D

DISTRIBUTION OF ASKING RENTS IN DORTMUND 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

1.7 1.4 36.9 32.5 39.9 41.3 15.9 17.2 3.7 4.5 1.9 3.1
50%

40%

30%

20%

10%

0%

under €4.00 €4.00 to €5.49 €5.50 to €6.99 €7.00 to €8.49 €8.50 to €9.99 €10.00 and over

The proportion of asking rents above €7.00 per square metre in Dortmund

showed a further significant increase in 2015. Almost a quarter of the listings were
above this threshold.

Westrich [11] with an average of €5.61. The area consists
of relatively peripheral residential areas with historic in-
dustrial cores but also some scenic intermediate areas
such as the Dellwig river valley. The median asking rent is
just €0.11 lower in the northern city centre, which includes
the port [09]. Viewed from the city centre, the area is lo-
cated north of the railway lines and is characterised by
some social tension. Students and young professionals
also tend to live here. Indeed, the area is becoming more
attractive due to its central location and median asking
rents increased by 10.0 per cent from 2012 to 2015. How-
ever, it would be an exaggeration to speak of gentrifica-
tion here.
The quality of living in Dorstfeld, Kley, Oespel, and Wisch­
ling­en [04] is somewhat mixed. There are attractive vil-
lages and charming areas such as Wischlingen leisure
park, but also many commercial sites, highways and hap-

Key Figures for the housing market

Dortmund North Rhine-Westphalia Germany

Average asking rent 2015 in €/m²/month 6.00 6.14 6.51

Average size of apartments on offer 2015 in m² 64.0 69.9 68.0
Vacancy rate in apartment buildings 2014 in % 2.6 3.1 3.0
Newly finished apartments1) per 1,000 residents 2014 1.6 2.4 2.7
Of which are in apartment buildings 2)
1.0 1.3 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

057
CITY PROFILE n D O RTM U N D

Asking Rents in DORTMUND 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ] Aplerbeck, Schüren, Sölde, Sölderholz, Berghofen, Benninghofen 702 70.0 6.02

[ 02 ] Brackel, Wickede, Asseln, Kurl, Husen 694 65.0 5.73
[ 03 ] City East and West, Westfalenhalle, Kaiserbrunnen, Ruhrallee 1,114 63.0 7.06
[ 04 ] Dorstfeld, Kley, Oespel, Wischlingen 282 62.0 5.32
[ 05 ] Eving, Brechten, Lindenhorst 502 58.1 5.80
[ 06 ] Hombruch, Renninghausen, Barop, Eichlinghofen, Kirchhörde 755 65.0 6.97
[ 07 ] Hörde, Syburg, Wellinghofen, Holzen, Loh 896 66.0 6.37
[ 08 ] Huckarde, Jungferntal, Deusen, Kirchlinde, Hangeney, Marten, 900 60.0 5.64
Germania
[ 09 ] Innenstadt North, Harbour 753 60.0 5.50
[ 10 ] Innenstadt East, Wambel, Körne, Westfalendamm, Gartenstadt 571 65.0 6.44
[ 11 ] Lütgendortmund, Bövinghausen, Westrich 383 65.0 5.61
[ 12 ] Mengede, Nette, Alte Kolonie, Bodelschwingh, Westerfilde, 569 65.0 5.28
Oestrich
[ 13 ] Scharnhorst, Derne, Lanstrop, Hostedde 462 70.0 5.15
Dortmund average 8,583 64.0 6.00

hazard brownfield sites. The median asking rent here
stands at €5.32 per square metre. The lower end of the
rental rankings is occupied by the northeast and north-
west of the city, which is fragmented by roads, industry,
smaller commercial uses and logistics as well as heaps
and wasteland. However, there are also some inter-
spersed attractive residential and green areas. The sec-
ond lowest median asking rent of €5.28 is found in the
north-western districts of Mengede, Nette, Alte Kolo-
nie, Bodelschwingh, Westerfilde, and Oestrich [12]. The
northeast, comprising Derne, Lanstrop and Hostedde [13]
as well as Scharnhorst, which also includes the larg-
est satellite settlement of Dortmund with more than
5,000 homes, is priced a further €0.13 lower.

ATTRACTIVE LOCATIONS AND AGEING DISTRICTS

Dortmund continues to carry the burden of de-industrialisation with high unemployment, numerous brownfield
sites and a plentiful supply of housing of basic and moderate quality and location on the market. On the other
hand, the city has laid the foundations for some promising and ambitious service sectors. Attractive housing for
employees in this sector is mainly located in the centre and, like other cities in the Ruhr area, in the south of the
city, which is clearly reflected in the prime asking rents. The greatest growth potential is also expected here in the
medium and longer term.

058
 CITY PROFILE n D O RTM U N D

aVeraGe asKinG renTs in CiTY areas 2015

12 05 13

08 09 02

10
11
03

04 01

06

07

Median in €/m²/month

5.15 – 5.30 5.31 – 5.50 5.51 – 5.63 5.64 – 5.73 5.74 – 5.91 5.92 – 6.37 6.38 – 6.71 6.72 – 7.06

059
CITY PROFILE n DRESDEN

Dresden: High technology meets culture

Dresden has transformed itself from an industrial location to a city known for both high-tech and
culture. The city has one of the fastest growing and most attractive housing markets – and not just
among the former East German states.

The former seat of royal power impresses with its exciting
blend of tradition and modernity. Despite sustaining heavy
damage during the Second World War, many charming
historical or reconstructed blocks have been preserved
in the old town. The city, also known as “Florence on the
Elbe”, with its Frauenkirche or Church of Our Lady, the
Royal Palace, the Zwinger palace, the Semperoper opera
house, the Elbe palaces, Hellerau Garden City, and award-
winning, modern architecture attracts tourists and art lov-
ers from all over the world. With an area comprising 62 per
cent forests and green spaces, Dresden is also a very green
city, with the particular attraction of the central Elbe flood-
plains. Thanks to modern, networked infrastructures, Dres-
den is easily accessible from all directions. Dresden not
only focused on culture and tourism, but also evolved into
a major European technology location. The catalysts for
the city’s dynamic economic development in what’s known
as “Silicon Saxony” include the fields of microelectron-
ics, information and communication technology, as well
as new materials, nanotechnology, photovoltaics, life sci-
ences and biotechnology. One in two chips manufactured
in Europe is produced in Dresden. In addition to numerous
global players such as Infineon Technologies, Globalfound-
ries, GlaxoSmithKline Biologicals, and Ardenne Anlagen-
technik, a wide range of future-oriented SMEs (small and
medium-sized enterprises) are located here. The number
of employees subject to social security contributions in-
creased by 17.3 per cent from 2004 to 2014. In addition to
the dynamic economy, Dresden is also a renowned knowl-
edge and research location. The city’s nine universities
have around 45,000 registered students and are comple-
mented by numerous non-university research institutions.

060
 CITY PROFILE n DRESDEN

Dresden is the leading city in Germany when it comes to the number of births. The
capital of Saxony tops the charts among the 15 largest German cities with 117 births
per 10,000 inhabitants.

RISING POPULATION AND HOUSEHOLD NUMBERS
At the end of 2014, Dresden had 536,308 inhabitants. Pro-
jections for the period from 2012 to 2030 indicate a 1.2 per
cent rise in population, while the number of households is
expected to rise by 3 per cent. Despite the birth rate cur-
rently exceeding the death rate, the City attributes the
majority of the population growth to net migration. The
influx is almost exclusively focused in the 18 to 24 age
group. The urban population forecast predicts significant
growth in multi-person households, which usually means
families, by 2025. The number of households with three
or more people is expected to rise by 6,500 households
by 2025. This does not include the influx of asylum seek-
ers. The growth in multi-person households is also driving

061
CITY PROFILE n DRESDEN
demand for family-friendly housing and building plots for
single-family homes. Of the 293,922 residential units (as
at the end of 2014) in buildings with residential accommo-
dation, 28 per cent were built before 1918, almost 18 per
cent were built between 1919 and 1945, some 36 per cent
were built during the period from 1946 to 1990 and around
18 per cent were built after 1990. New-build following Ger-
man reunification was largely subsidised by attractive tax
breaks and led to significant oversupply.
In the year 2000, approximately 60,000 residential units,
some 20 per cent of the housing stock, were vacant. Dur-
ing the phase of high vacancy rates, construction of sin-
gle-family houses remained unchanged but construction
of apartment buildings fell sharply. The vacancy rate fell
from the end of the 1990s thanks to extensive demolition
of residential property, particularly with regard to Platten-
bau (slab construction) apartment buildings. From 1992 to
2013, 11,392 residential units were demolished in Dresden.
The active market vacancy rate fell to 2.1 per cent by 2014.
Indeed, the trend has now completely reversed.
Owing to the positive demographic trends, rental apart-
ments in particular are now becoming scarce. While build-
ing activity has increased in Dresden, this has not relieved
the strain on the rental market proportionately. A total
of 1,314 new residential units were completed in Dresden
in 2014, which was 63 per cent more (510 units) than in
the previous year. There was significant growth in new-
build apartment buildings with an increase of 328 units
to 641 new apartments compared with 2013. A regulatory
rental cap on residential rents came into effect in Dresden
in August. These have since been subject to a maximum
increase of 15 per cent (instead of 20 per cent) over three
years, up to the level of the local comparable rent.
062
In 2012, future construction needs in Dresden to 2025
were identified as part of the re-formulation of the land
use plan. According to forecasts, a total of 13,000 new
homes are required. Half of the projected new-build de-
mand is for residential units in apartment buildings. The
“Wohnentwicklung in Dresden” (Residential Develop-
ment in Dresden) concept, developed by the City at the
end of 2013, comprises a package of measures to enable
all relevant demand groups to gain access to Dresden’s
housing market according to their needs. When it comes
to urban development, Dresden is planning a small-scale
functional mix in city-centre developments. Besides re-
vitalisation projects, larger amounts of residential units
will therefore mostly be built in mixed-use districts. Some
2,500 units will be developed on the former Robotron
site from 2017. There will also be cranes on the skyline
in Johannstadt North from 2017. Plans for the “genera-
tions quarter” include 200 rental apartments, 80 student
apartments and 70 business apartments. The corner plot
at Wiener Platz/Prager Straße 1 is under development
with the “Prague Carré” comprising some 240 rental
apartments, as well as retail and commercial space. A
pure residential development is in progress between Hae-
nel-Clauß-Straße and Geisingstraße in Striesen. In the
Gartenstadt residential district, a total of 20 to 25 build-
ings with up to 300 apartments are scheduled for com-
pletion by the end of 2016. Furthermore, the old postal
headquarters is scheduled for conversion into the “Resi­
denz am Postplatz” with 242 rental apartments by 2017.
 CITY PROFILE n DRESDEN

DISTRIBUTION OF ASKING RENTS IN DRESDEN 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

0.4 0.6 9.3 8.2 46.2 43.1 31.3 33.9 8.6 9.6 4.2 4.7
50%

40%

30%

20%

10%

0%

under €4.00 €4.00 to €5.49 €5.50 to €6.99 €7.00 to €8.49 €8.50 to €9.99 €10.00 and over

The largest segment of asking rents, some 43.1 per cent, ranged between €5.50 and
€6.99. However, 33.9 per cent ranged between €7.00 and €8.49. Overall, rents remain
at moderate levels.

MODERATE RISE IN ASKING RENTS figure of €6.22 was found in Schönfeld-Weißig [10] in the

The median exclusive asking rent for the city as a whole in-
creased from €6.77 in 2014 to €6.93 per square metre in
2015. In terms of rental growth since 2012, Dresden ranks
among the top quarter of all 29 major cities analysed and
is second only to Leipzig in the federal states created from
the former East Germany. The highest median asking rent
of €7.51 per square metre was reported in the exclusive
residential area of Loschwitz [06], while the lowest median
east of the city. However, it appears that the air becomes
thinner with altitude. The median asking rent in Loschwitz,
which retains its old village centre with many half-timbered
houses that are now home to numerous artists, fell for the
first time since 2012, albeit by a mere €0.11 compared with
the previous year. The Altstadt and Neustadt [01] areas
are also expensive. Landlords in these areas were ask-
ing an average of €7.20. The Altstadt on the left bank of

Key Figures for the housing market

Dresden Saxony Germany

Average asking rent 2015 in €/m²/month 6.93 5.39 6.51

Average size of apartments on offer 2015 in m² 58.3 60.2 68.0
Vacancy rate in apartment buildings 2014 in % 2.1 6.5 3.0
Newly finished apartments1) per 1,000 residents 2014 2.4 1.5 2.7
Of which are in apartment buildings 2)
1.7 0.6 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

063
CITY PROFILE n DRESDEN

Asking Rents in DRESDEN 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ] Altstadt, Neustadt 2,239 58.0 7.20

[ 02 ]
Blasewitz 3,112 61.0 7.17
[ 03 ] Cossebaude, Mobschatz, Oberwartha, Gompitz 123 64.7 6.85
[ 04 ]
Cotta 2,938 55.0 6.61
[ 05 ]
Klotzsche 290 59.0 7.02
[ 06 ]
Loschwitz 1,558 63.0 7.51
[ 07 ]
Pieschen 1,564 58.5 6.64
[ 08 ]
Plauen 1,094 55.5 7.12
[ 09 ] Prohlis, Leuben 2,985 57.6 6.31
[ 10 ]
Schönfeld-Weißig 254 52.1 6.22
[ 11 ] Weixdorf, Langebrück, Schönborn 80 72.0 6.62
Dresden average 16,237 58.3 6.93

the Elbe, characterised by a high proportion of historically fruit. Since 2012, the median asking rents in the Prohlis and
accurate reconstructions around the Frauenkirche, com- Leuben areas have risen from €5.98 to €6.31 while those in
prises numerous baroque building ensembles and sights Cotta [04], including the Gorbitz area dominated by Plat-
that enhance Dresden’s charm as a cultural city. The Neu- tenbau buildings, have increased from €5.93 to €6.61.
stadt area is home to the government quarter, while outer
Neustadt between Königsbrücker Straße and Lutherplatz
is home to a diverse cultural scene and a plentiful restau-
rant and retail offering. Affordable asking rents in Dresden
are primarily found in Prohlis and Gorbitz, which comprise
large volumes of Plattenbau buildings (slab construction).
Landlords in the southeast of the city in the Plattenbau
area of Prohlis and its surrounding area [09] were quoting
less than €6.31 per square metre on new lettings. How-
ever, the extensive improvement works as part of the “So-
ziale Stadt” (Social City) initiative appear to be bearing

DRESDEN COMBINES TRADITION AND CULTURE WITH STATE-OF-THE-ART TECHNOLOGY

Dresden is not just an arts and cultural metropolis, but also a major European technology centre. In addition to the
dynamic economy, the city is also a renowned centre of knowledge and research. Owing to the positive demographic
trends, rental apartments in particular are now becoming scarce. Demand projections up to 2025 indicate a require-
ment of some 13,000 new residential units, half of which relates to apartments in apartment buildings. The present
availability of building land is sufficient to cover the projected demand at least in terms of quantity. However, new-
build provision must start now. The median exclusive asking rent of €6.93 per square metre reflects a relatively
moderate price level. However, rents in almost all city districts studied display a rising trend.

064
 CITY PROFILE n DRESDEN

aVeraGe asKinG renTs in CiTY areas 2015

11

05

07 06

03 04 01 02 10

08

09

Median in €/m²/month

6.22 – 6.39 6.40 – 6.62 6.63 – 6.64 6.65 – 6.85 6.86 – 7.04 7.05 – 7.15 7.16 – 7.19 7.20 – 7.51

065
CITY PROFILE n DUISBURG

Duisburg: Modest growth but clear

north-south divide remains
Duisburg’s structural change has produced some promising growth industries. Parts of the
housing market are benefiting from their proximity to more expensive Dusseldorf as well as
beautiful green spaces. There are also signs of an upturn in the city centre.

In the former industrial stronghold and mining city of
Duisburg, more than two thirds of employees subject to
social security contributions are now working in the ser-
vice industry. Coal mining ceased in 2008. The city is
benefiting from the ongoing upturn in the logistics indus-
try, the prospering steel industry as well as science and
technology companies and particularly the university and
research institutes of the Fraunhofer-Gesellschaft. Duis-
burg’s inner harbour is a prominent example of structural
change, having been transformed since the 1990s from
a former industrial area to an architecturally fascinating,
mixed-use urban quarter and a highlight on the Industrial
Heritage Trail.
However, the upturn in Duisburg is not distributed evenly.
In the southern area of the city on the right bank of the
Rhine, the open spaces, living environment and infrastruc-
ture point to more favourable development than in many
other parts of Duisburg. Densely built-up and crowded
residential and industrial districts dominate the urban
landscape, particularly in the north of the city. Some ar-
eas are undergoing demolition, reducing the oversupply
in the housing market and increasing the attractiveness of
the now less densely developed areas. In terms of popula-
tion, 2013 saw the first annual growth in the number of in-
habitants since 1992, albeit it was a very modest increase.
However, the population declined again in 2014. Moreover,
Duisburg is expected to lose significantly more inhabitants
and households compared with Essen and Dortmund go-
ing forward. The purchasing power in the city is virtually
the lowest of all cities studied in western Germany. Only
Halle (Saale) ranks lower than Duisburg in this respect.

066
 CITY PROFILE n DUISBURG

Duisburg’s ports are the largest inland ports in Europe. In 2014, goods handled
totalled approximately 52 million tonnes – significantly higher than in Cologne
(12 million tonnes) and Neuss-Dusseldorf (7 million tonnes).

POPULAR SOUTH, VIBRANT CENTRE
Duisburg’s most attractive residential area is located on
the right bank of the Rhine between the city centre and
the boundary with Dusseldorf. The centre, with the Alt-
stadt and Dellviertel, and the adjacent eastern areas of
Neudorf and Duissern [01], along with the area compris-
ing Großenbaum, Rahm, Wedau, and Bissingheim [02],
reported the highest asking rents among the nine areas of
Duisburg studied. The median asking rent in both areas
stood at €6.00 per square metre in 2015. The city centre
benefits from an excellent infrastructure. However, there
is no distinctive old town ambience. The Dellviertel enjoys
a certain bourgeois urban image by Duisburg standards.
Duissern and Neudorf are equally close to the centre and

067
CITY PROFILE n DUISBURG
leafy. The university is also located in Neudorf. Landlords
here are faced with urban-focused, relatively discerning
demand. The most expensive decile of apartments availa-
ble showed asking rents of at least €7.60 per square metre
– more than in any other area of the city.
The area comprising Großenbaum, Rahm, Wedau and
Bissingheim has a high proportion of green spaces with
some open fields and meadows as well as forests and ex-
panses of water. The Sechs-Seen-Platte recreation area
and the Rahmer See and Großenbaumer See lakes are also
situated here. Moreover, the area benefits from connec-
tions to Dusseldorf by S-Bahn and light rail, making it suit-
able as a residential area for commuters to the far more
expensive state capital. The address does, however, pose
a stumbling block for the more prestige-conscious Dus-
seldorf residents. Moving to Duisburg is associated with
some prejudice as it might be interpreted as a step down
the social ladder. However, upon arrival, people are often
pleasantly surprised by the beautiful living environment.
The rest of the south of Duisburg [08] is third in the city’s
rental rankings, with a median asking rent of €5.48 per
square metre on new lettings. Most of the area is relatively
close to the centre. However, there are also some green
spaces, such as Wedau Regatta Course and the Rhine
bend near Mündelheim. The area is also quite well con-
nected to Dusseldorf. With regard to rental growth, the
area does not show any clear trend. While landlords were
asking an average of 5.4 per cent more per square metre
on new lettings in 2013 compared with 2012, the median
asking rent fell slightly by 0.4 per cent in 2014 compared
with the previous year and rose by 1.3 per cent in 2015.
068
MODERATE RENTS NORTH OF THE CITY CENTRE
On the one hand, the area comprising Hochfeld, Neuen-
kamp and Kaßlerfeld [04] borders the city centre to the
west and benefits from its infrastructure. On the other
hand, however, it is in a difficult location between the city
centre, railway lines, an industrial zone dominating the
eastern bank of the Rhine and the Ruhrort harbour that
borders the area to the north. This explains the low median
asking rent of €5.24 per square metre; the fourth lowest of
the nine city districts in Duisburg. However, the increase of
3.4 per cent in 2015 was also the highest in the city.
The second lowest rents among all city districts are
found in an extensive area to the north of the city cen-
tre comprising Meiderich, Beeck, Beeckerwerth, Ruhrort,
and Laar [06], where the median asking rent stands at
€5.10 per square metre. The area is characterised by a
densely woven mix of residential, commercial and heavy
and large-scale industry uses along with railway lines,
motorways, waste tips, landfills, and derelict sites. The
area is also home to the Duisburg North landscape park,
which was remodelled into a nationally renowned land-
scape architecture project as part of the International
Building Exhibition Emscher Park, and is used in a variety
of ways today. Only the employment opportunities, once
the reason many people accepted the somewhat less
attractive environment, are now scarce. Consequently,
there is an abundance of housing available. However, the
lack of economic activity and purchasing power to stimu-
late demand is compounded by the fact that the pre-war
and post-war housing often no longer meets contempo-
rary requirements in terms of comfort and size. Further-
more, the contrasts of residential, commercial and trans-
port uses in the area are all too apparent.
 CITY PROFILE n DUISBURG

DISTRIBUTION OF ASKING RENTS IN DUISBURG 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

3.0 3.3 32.7 28.2 42.1 45.3 14.9 15.5 5.0 5.1 2.4 2.6
50%

40%

30%

20%

10%

0%

under €4.00 €4.00 to €4.99 €5.00 to €5.99 €6.00 to €6.99 €7.00 to €7.99 €8.00 and over

Asking rents in Duisburg remain at a low level. More than three quarters of
residential lettings are advertised at below €6.00 per square metre and there is
essentially no high-priced segment.

These challenges are even more pronounced in the
area with the lowest median asking rent in Duisburg of
€4.88 per square metre per month. This area is situated
to the north of the afore-mentioned areas and comprises
Hamborn, Bruckhausen, Neumühl, Marxloh, and Rött-
gersbach [03]. In some parts, market participants and
city planners have identified demolition as the only viable
means to reduce the pressure of oversupply and unravel
the confused zoning situation. This has been implemented
in the most consistent manner in Bruckhausen, where an
entire district near Kaiser-Wilhelm-Straße is gradually dis-
appearing and is to be replaced by a park. The “Schimanski”
movies were filmed here, since the area matched the Ruhr
area cliché extremely well at the time. In other parts of the
district, apartment buildings and public infrastructure have
been modernised with the aid of extensive subsidies.

Key Figures for the housing market

Duisburg North Rhine-Westphalia Germany

Average asking rent 2015 in €/m²/month 5.30 6.14 6.51

Average size of apartments on offer 2015 in m² 64.0 69.9 68.0
Vacancy rate in apartment buildings 2014 in % 5.1 3.1 3.0
Newly finished apartments1) per 1,000 residents 2014 1.0 2.4 2.7
Of which are in apartment buildings 2)
0.5 1.3 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

069
CITY PROFILE n DUISBURG

Asking Rents in DUISBURG 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ] Altstadt, Dellviertel, Neudorf, Duissern 1,143 62.0 6.00

[ 02 ] Großenbaum, Rahm, Wedau, Bissingheim 359 64.0 6.00
[ 03 ] Hamborn, Bruckhausen, Neumühl, Marxloh, Röttgersbach 1,399 68.0 4.88
[ 04 ] Hochfeld, Neuenkamp, Kaßlerfeld 605 60.0 5.24
[ 05 ] Homberg, Baerl 576 66.8 5.28
[ 06 ] Meiderich, Beeck, Beeckerwerth, Ruhrort, Laar 1,425 62.0 5.10
[ 07 ] Rheinhausen, Bergheim, Hochemmerich, Rumeln-Kaldenhausen, 1,134 64.5 5.29
Friemersheim
[ 08 ] South (excl. Großenbaum, Rahm, Wedau) 883 60.8 5.48
[ 09 ] Walsum, Overbruch, Vierlinden, Aldenrade, Wehofen, Fahrn 572 68.6 5.23
Duisburg average 8,096 64.0 5.30

Further out, the picture is somewhat more positive. The
area far to the north on the right bank of the Rhine in
Duisburg comprises Walsum, Overbruch, Vierlinden, Al-
denrade, Wehofen, and Fahrn [09]. The median asking
rent here stands at €5.23 per square metre. The area is
far removed from the city centre and is affected by the
structural crisis of the adjacent old industrial district and
the end of mining. However, the extensive Walsum Rhine
floodplain with its landscape characterised by meadows,
trees, and hedgerows is a selling point for the area.
AVERAGE LOCATIONS IN THE WEST
In Duisburg West on the left bank of the Rhine, the area
comprising Homberg and Baerl [05] shows the highest
median asking rent in the north of Duisburg of €5.28 per
square metre. Alt-Homberg has the image of a small
Lower Rhine town (albeit without the historical character)
but is suffering from the decline of local industries. Baerl
is primarily dominated by single-family houses and has a
correspondingly small rental market.
The median asking rent is almost identical in the area
south of here, comprising the districts of Rheinhausen,
Bergheim, Hochemmerich, Rumeln-Kaldenhausen and
Friemersheim [07]. This spacious and highly heterogene-
ous area extends over the entire south west of Duisburg.
The area includes a logistics cluster on the former site of
the Rheinhausen Krupp steel plant and a range of subur-
ban housing estates of varying quality. The environmental
impact from transport and industry is somewhat compen-
sated by attractive scenic destinations such as the Toep-
persee lake.

RISING OPTIMISM TOWARDS DUSSELDORF

The situation on the Duisburg residential market situation is often cause for concern for landlords but it is not
completely without hope. There are secluded residential areas with good transport links – not only with Duis-
burg city centre, but also with Dusseldorf and its much hotter housing market. The situation in the districts to
the west of the Rhine, where industry is in decline, is mixed. The lowest rents are found in the areas to the north
of the centre. Demolitions to rebalance the market are probably inevitable here. This will also reduce develop-
ment density as well as creating potential for green spaces, infrastructure, and forward-looking industries.

070
 CITY PROFILE n DUISBURG

aVeraGe asKinG renTs in CiTY areas 2015

09

05 03

06

04 01

07

08 02

Median in €/m²/month

4.88 – 5.10 5.11 – 5.23 5.24 – 5.24 5.25 – 5.28 5.29 – 5.29 5.30 – 5.48 5.49 – 6.00 6.01 – 6.02

071
CITY PROFILE n DUSSELDORF

Dusseldorf: Rental growth has almost halted

The state capital of North Rhine-Westphalia is expected to continue its positive growth over the
coming years. Dusseldorf is almost exemplary of how residential markets can function. Demand has
risen over a sustained period, rents have grown and a development boom has followed.

Dusseldorf continues to enjoy dynamic economic growth. ONLY A MODEST RISE

The city is home to major companies and is a national hub
for sectors such as mobile communications, advertising,
and fashion. It is also a key location for foreign trade and
trade fairs in addition to being a transport hub, a state
capital and a service centre in the Rhine-Ruhr area. The
number of employees subject to statutory social security
contributions has risen by 15.5 per cent within 10 years.
Meanwhile, the population has grown by an impressive
2.5 per cent from the end of 2011 to the end of 2014 alone.
In keeping with the other top seven cities, Dusseldorf has
an above-average proportion of 30 to 44 year-olds and
single-person households. Between 2012 and 2030, the
population is projected to grow by 3.4 per cent while the
number of households is expected to rise by as much as
6.9 per cent. At the recent rate of growth, these predic-
tions could be reached much sooner. All of this has re-
sulted in sharp rises in asking rents in the city in recent
years and, consequently, a development boom.
However, rents are only moving in one direction. This is
the current experience of many providers, who have bet
on a sustained continuation of the strong growth of re-
cent years and invested in new developments – particu-
larly in the high-end segment and in sought-after districts,
though not always in the best micro-locations. Indeed,
only around one fifth of new apartments are built for let-
ting. However, every condominium also frequently influ-
ences and lightens the market – often because either an
owner-occupier is a potential tenant lost or because an
investor lets the apartment.
Across the city as a whole, the median asking rent rose
by just 0.3 per cent to €9.23 per square metre in 2015.
The absolute value is still second only to Cologne (€9.86)
among the major cities in North Rhine-Westphalia. How-
ever, in view of the economic and population growth, the
increase is not so impressive. Some landlords reduced
their asking rents compared with the previous year. This

072
 CITY PROFILE n DUSSELDORF

Dusseldorf has the highest commuter balance of all cities in North Rhine-West-
phalia. The ratio of incoming commuters to outgoing commuters in Dusseldorf
is around 3.1 to one.

is particularly true in Oberkassel [14] on the left bank of projects in neighbouring Heerdt as well as competition
the Rhine facing the Altstadt (Old Town); traditionally the from other districts. However, the luxury segment re-
area with the highest rents. The median figure here re- mains strong. The most expensive decile of apartments is
mains a substantial €11.93 per square metre, although this marketed for at least €16.38 per square metre.
is 1.0 per cent lower than in the previous year. The median
asking rent also fell in the two previous years compared
with a year earlier. This is attributable to local new-build

073
CITY PROFILE n DUSSELDORF
TOP LOCATIONS ON BOTH BANKS OF THE RHINE
In second place, with a median asking rent of €10.99 per
square metre, is the city centre with the Altstadt, the ba-
roque Carlstadt and the area around the Königsallee [15].
This area benefits from its spacious location in the city
but not always from the micro-location or building qual-
ity. Many buildings date back to the post-war era and are
impaired by traffic or the bustle of the Altstadt district. At
the upper end of the market, however, asking rents in the
most expensive decile start at €15.76. Such rents can be
demanded on the banks of the Rhine, around the small
parks in the area and in buildings of luxurious fit-out, for
example.
In third place with a median asking rent of €10.33 is the
second area of Dusseldorf on the left bank of the Rhine,
adjacent to Oberkassel, which comprises the districts of
Lörick, Niederkassel, and Heerdt [11]. While Niederkassel
and Lörick have long been regarded as good leafy neigh-
bourhoods, Heerdt is only now enjoying an upturn. There
are a number of major new developments, such as the
Heinrich-Heine-Gärten and Rheinkilometer 740, and the
market is less characterised by areas of traffic and indus-
trial pollution than previously.
FIVE AREAS WITH RENTS OF EXACTLY €10.00
There are five areas in the city with a median asking rent
of exactly €10.00 per square metre. To the south of the
centre is Unterbilk [16], a mixed-use area including the
state parliament and ministries along with numerous
other office and apartment buildings from the 1950s and
1960s as well as 1990 onwards. The densely populated
district adjacent to Medienhafen is more a residential
area for singles and couples than for families. Hamm and
Volmerswerth [07] are relatively close to the city centre
and are separated from Unterbilk and Medienhafen by
074
the S-Bahn line. Development in the area is of a low den-
sity and, in places, even has a rural character. The median
asking rent rose by 1.7 per cent in 2015, which is slightly
above average.
The median asking rent is also exactly €10.00 per square
metre in three areas to the north of Dusseldorf city cen-
tre. One of these areas comprises Wehrhahn and Pempel-
fort (South) [18] and is situated directly north of the city
centre. The area benefits from its central location, good
infrastructure and the greenery of the Hofgarten public
park. Negatives include the high proportion of relatively
basic post-war structures with somewhat cramped lay-
outs and the very high development density. Around five
kilometres north of the city centre are Golzheim, Stockum,
and Lohausen [10]. Development here is predominantly
of a low density and often characterised by single-family
houses. The final area with a median asking rent of pre-
cisely €10.00 comprises Wittlaer, Angermund, Kaisers­
werth, and Kalkum [20]. The once rural or provincial
character is still evident in many places. The environment
is characterised by green spaces and the banks of the
Rhine but also by busy roads and railway lines as well as
the airport.
Next in the rankings and far more central is the area
comprising Derendorf and Pempelfort (North) [01]
around two kilometres north of the city centre. The for-
mer De­ren­dorf rail freight depot is now the site of the
overall largest residential development project in the city,
Le Quartier Central. With a median asking rent of €9.65,
next in the rankings is another suburban area comprising
Hubbelrath and Ludenberg [09], which is situated in the
foothills of the Bergisches Land region and includes hill-
side and woodland areas. The area is neither close to the
city nor well connected to the city centre.
 CITY PROFILE n DUSSELDORF

DISTRIBUTION OF ASKING RENTS IN Dusseldorf 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

1.8 2.1 20.1 17.8 41.1 42.8 23.3 24.6 8.3 8.5 5.3 4.2
50%

40%

30%

20%

10%

0%

under €6.00 €6.00 to €7.99 €8.00 to €9.99 €10.00 to €11.99 €12.00 to €13.99 €14.00 and over

Asking rents in Dusseldorf remain high. More than a third of apartments are
marketed for €10.00 per square metre or more. However, the proportion of prime
rents of €12.00 and above declined slightly compared with the previous year.

PERIPHERAL AREAS AT THE TAIL END
The next area in the rankings comprising Flingern North,
Grafenberg and Düsseltal [03] has a median asking rent of
€9.53 per square metre and is situated to the northeast of
the city centre. Towards the city centre, these are charac-
terised by areas of dense multi-storey development while
the outer areas have large amounts of green space. This
is followed by Bilk and Flehe [02] to the south of the city
centre as well as the southern city centre including Frie-
drichstadt. While the latter is a very central area, it is par-
ticularly affected by heavy road traffic and is densely de-
veloped, with the majority of housing dating back to the
post-war era and no longer meeting current occupier re-
quirements.
In all other areas, the median asking rent is more or less
significantly below the figure for the city as a whole. This is
true of Oberbilk and Flingern South [13] – densely devel-
oped areas to the east of the city centre with an intimate

Key Figures for the housing market

Dusseldorf North Rhine-Westphalia Germany

Average asking rent 2015 in €/m²/month 9.23 6.14 6.51

Average size of apartments on offer 2015 in m² 70.0 69.9 68.0
Vacancy rate in apartment buildings 2014 in % 1.6 3.1 3.0
Newly finished apartments1) per 1,000 residents 2014 3.7 2.4 2.7
Of which are in apartment buildings 2)
3.3 1.3 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

075
CITY PROFILE n DUSSELDORF

Asking Rents in Dusseldorf 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ] Derendorf, Pempelfort (North) 1,092 67.0 9.71

[ 02 ] Flehe, Bilk 752 65.0 9.37
[ 03 ] Flingern North, Grafenberg, Düsseltal 1,173 78.0 9.53
[ 04 ] Friedrichstadt, City Centre (South) 970 66.0 9.29
[ 05 ] Garath, Hellerhof 251 70.0 7.71
[ 06 ] Gerresheim, Vennhausen, Unterbach 677 72.0 8.64
[ 07 ] Hamm, Volmerswerth 233 72.0 10.00
[ 08 ] Himmelgeist, Itter, Holthausen, Reisholz, Hassels 551 61.7 8.49
[ 09 ] Hubbelrath, Ludenberg 324 81.0 9.65
[ 10 ] Lohausen, Stockum, Golzheim 283 90.0 10.00
[ 11 ] Lörick, Niederkassel, Heerdt 643 77.7 10.33
[ 12 ] Mörsenbroich, Rath, Lichtenbroich, Unterrath 1,123 68.1 8.68
[ 13 ] Oberbilk, Flingern South 895 58.0 8.53
[ 14 ]
Oberkassel 434 95.0 11.93
[ 15 ] City Centre (Königsallee), Carlstadt 231 80.0 10.99
[ 16 ]
Unterbilk 259 63.0 10.00
[ 17 ] Urdenbach, Benrath 405 65.0 9.05
[ 18 ] Wehrhahn, Pempelfort (South) 791 73.0 10.00
[ 19 ] Wersten, Eller, Lierenfeld 825 63.9 8.33
[ 20 ] Wittlaer, Angermund, Kaiserswerth, Kalkum 381 90.0 10.00
Dusseldorf average 12,293 70.0 9.23

mix of residential and commercial uses. The same figures The median rent per square metre here stands at just
are also registered in areas on the periphery to the north, €7.71 but posted a significant rise of 2.8 per cent in 2015.
(i.e. Rath), to the south, (i.e. Benrath), and to the east, (i.e.
Gerresheim). By far the lowest asking rents are found in
the far south of Dusseldorf in Garath and Hellerhof [05],
which is dominated by a satellite town from around 1970.

CURRENT BLIP BUT GOOD LONG-TERM OUTLOOK

Dusseldorf is a federal state capital, part of the Rhine-Ruhr metropolitan region and remains the second-most
expensive major city in North Rhine-Westphalia. However, rental growth is currently showing signs of easing,
with some figures even decreasing year on year. Nevertheless, with the city’s economy and population expected
to maintain their growth for the foreseeable future, the medium and long-term outlook for providers is good.
However, the current trends demonstrate that, even during booms, not every apartment can be marketed at any
price. Going forward, landlords must approach the market sensibly and take account of the different occupier
requirements in terms of price and quality.

076
 CITY PROFILE n DUSSELDORF

aVeraGe asKinG renTs in CiTY areas 2015

20

10

12

09
01
11
03
18
14
15

04 13 06
16

07 02 19

08

17

05

Median in €/m²/month

7.71 – 8.51 8.52 – 8.67 8.68 – 9.30 9.31 – 9.59 9.60 – 9.96 9.97 – 10.00 10.01 – 10.21 10.22 – 11.93

077
CITY PROFILE n E R F U RT

Erfurt: A city of diversity

Erfurt is the state capital and thus the political, economic and cultural centre of the Free State of
Thuringia. Net migration and a trend towards re-urbanisation are resulting in shortages of city centre
housing, while rising rents are triggering increasing construction.

The impressive ensemble of the cathedral and St Severi
church is a landmark of the city and witness to the stabil-
ity and serenity of Erfurt in the face of changing political
systems, social trends, and economic challenges. Erfurt is
a city of bridges. A total of 216 span its rivers and roads,
the most famous being the Krämerbrücke. The bridge was
built of stone in 1325 and is the only bridge completely
covered in housing north of the Alps. The city is also
building bridges between its diverse architectural styles,
which reflect its eventful history. The medieval, almost
three square kilometre old town centre of Erfurt is one of
the best preserved in Germany, and is an impressive ex-
ample of a cohesive urban area. The old town is flanked
by a belt of Wilhelminian period districts, encompassing
the formerly bourgeois Löbervorstadt and Brühlervorstadt
areas, as well as the workers’ districts of Krämpfervor-
stadt and Johannesvorstadt. Social housing estates from
the 1920s and 1930s and post-war housing estates, as
well as large housing estates reflecting the industrial de-
sign of the communist era, are supplemented by village-
like settlements with single-family houses.
KNOWLEDGE AND RESEARCH
The University and Technical University of Erfurt, jointly
the “University of Applied Sciences”, contribute more than
10,000 students to a pool of highly-skilled professionals.
The state-owned research facility CiS Institute for Micro
Sensors and Photovoltaics combines micro-systems tech-
nology research with the fields of sensors, photovoltaics,
optics and nanotechnology, supporting small and me-
dium-sized companies along the entire innovation chain
as a service centre for research and development. In 2017,
the city celebrated one of its most famous sons, Martin
Luther, by marking 500 years since the Reformation. Lu-
ther was a student at the university in Erfurt from 1501 to
1505. The spirit of research is also embodied in council

078
 CITY PROFILE n E R F U RT

The Krämerbrücke bridge, which extends over a tributary of the Gera river, is
the longest completely developed and inhabited bridge in Europe. The bridge has
a total length of 120 metres and is developed with 32 houses.

leader Christian Reichart, who founded commercial horti- A GROWING ECONOMY

culture in the 18th century by way of introducing scientific
seed breeding and cultivation methods, earning the city
the reputation of “German city of flowers”. Today, Erfurt
is tapping into this tradition under the motto “GartenKul-
turStadt” (Garden City of Culture) and will host the Ger-
man National Garden Festival in 2021.
Erfurt is closely connected to the economic centres of
Germany and Europe by way of excellent road, rail and
air transport links. This is set to improve further with the
completion of the new ICE terminal. In addition to its bal-
anced mix of engineering, construction, and building ma-
terials industries, horticulture, the trades, and a versatile

079
CITY PROFILE n E R F U RT
service sector, Erfurt is also a centre for microelectronics,
micro-systems technology, and solar technology. Around
80 per cent of all chip card bodies in German mobile
phones are manufactured in Erfurt. As the administrative,
commercial and service hub for the Free State of Thuringia,
the federal state and municipal authorities are among the
largest employers in the city, followed by Stadtwerke Er-
furt Gruppe and the Helios hospital. The media and logis-
tics sectors are also represented in the city.
CONTINUED POPULATION GROWTH
From 1994 to 2002, Erfurt lost 6.3 per cent of its inhab-
itants due to the exodus to the west and the subsequent
effects of suburbanisation. Since then, the population
of Erfurt has consistently increased, with the exception
of 2006. From 2011 to 2014 alone, the population rose
by 2.1 per cent, reaching a total of 206,219. Against this
background, it is questionable whether the projected de-
crease of 7.0 per cent in population and 4.4 per cent in
households for the period from 2012 to 2030 will actually
080
materialise. Erfurt’s household structure is mainly charac-
terised by one and two-person households (almost 78 per
cent). The age groups are fairly evenly distributed. At 31
per cent, the proportion of people under the age of 30 is
almost matched by the 28 per cent of people aged 60 or
older. This is in line with average figures for Germany. Ac-
cording to the census, the housing stock in Erfurt com-
prised 28,045 buildings with 108,257 residential units, of
which 55,650 were in apartment buildings excluding Plat-
tenbau buildings (slab constructions). There were also a
further 33,800 residential units in Plattenbau buildings.
Single and two-family houses make up more than 62 per
cent of the building stock in Erfurt. However, only around
a quarter of the population lives in such housing. Con-
struction activity decreased significantly after the turn of
the millennium, falling from 1,635 apartments in residen-
tial buildings in 2000 to 342 homes in 2014. The active
market vacancy rate in apartment buildings now stands at
2.6 per cent (2014), which is below the Thuringian aver-
age of 5.2 per cent.
Erfurt is aiming to reduce CO2 emissions in the city by
80 per cent by 2050. A cornerstone of this concept is
the 10-hectare “Klimagerechte Pilotsiedlung Marienhöhe”
(Marienhöhe climate-friendly pilot area) with decentral-
ised energy generation, solar thermal energy and pas-
sive house standards. The expansion of the main railway
station into an ICE hub is a catalyst for the new 30-hec-
tare “ICE-City” urban quarter, scheduled for completion
by 2017. New, larger residential areas are also planned
over the coming years in the Johannesvorstadt district
between Eislebener Straße and Kirchgasse, on the brown-
field sites between Krämpfervorstadt and the railway line
to Nordhausen and in Erfurt-Gispersleben, in the area be-
tween Ulan-Bator-Straße and Zittauer Straße.
 CITY PROFILE n E R F U RT

DISTRIBUTION OF ASKING RENTS IN ERFURT 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

6.0 5.3 22.3 22.9 37.1 32.6 20.5 23.4 8.2 9.8 6.0 6.0
40%

30%

20%

10%

0%

under €5.00 €5.00 to €5.99 €6.00 to €6.99 €7.00 to €7.99 €8.00 to €8.99 €9.00 and over

The majority of exclusive asking rents in Erfurt range between €5.00 and €7.99 per
square metre. However, the proportion of residential listings from €8.00 has been
rising appreciably for a number of years.

RENTS ARE ON THE INCREASE
The median exclusive asking rent in Erfurt rose from
€6.30 per square metre in 2012 to €6.60 in 2015. The
most expensive decile of residential lettings adver-
tised started at €8.50. The highest median asking rent
of €7.50 was found in the area comprising Hochheim,
Bischleben, Schmira, and Möbisburg [03] in the south-
western outskirts with their rural charm, as well as in
Löbervorstadt [06], the greenest district in Erfurt. The
lower Dichterviertel and Musikerviertel areas offer lovers
of Wilhelminian era architecture an abundance of choice
between villas and apartment buildings with spacious
green courtyards. The most affordable asking rent of
€5.47 per square metre was quoted in the area compris-
ing Sulzer Siedlung, Roter Berg, Gispersleben, Moskauer
Platz, and Hohenwinden [11]. Residential development
in this area comprises a varied mix, ranging from single-
family houses to Plattenbau buildings. From the mid-

Key Figures for the housing market

Erfurt Thuringia Germany

Average asking rent 2015 in €/m²/month 6.60 5.38 6.51

Average size of apartments on offer 2015 in m² 61.2 62.0 68.0
Vacancy rate in apartment buildings 2014 in % 2.6 5.2 3.0
Newly finished apartments1) per 1,000 residents 2014 1.7 1.4 2.7
Of which are in apartment buildings 2)
0.9 0.5 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

081
CITY PROFILE n E R F U RT

Asking Rents in ERFURT 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ]
Altstadt 597 70.0 7.47
[ 02 ] Berliner Platz, Andreasvorstadt 443 57.0 6.65
[ 03 ] Hochheim, Bischleben, Schmira, Möbisburg 88 81.5 7.50
[ 04 ] Ilversgehofen, Johannesplatz 507 58.0 6.51
[ 05 ] Johannesvorstadt, Krämpfervorstadt, Hohenwinden 437 61.5 6.84
[ 06 ]
Löbervorstadt 303 72.0 7.50
[ 07 ] Melchendorf, Egstedt, Waltersleben 259 66.7 5.50
[ 08 ] Rhoda, Niedernissa, Herrenberg, Dittelstedt 283 60.8 6.00
[ 09 ] Periphery North/East 55 57.0 6.40
[ 10 ] Periphery West 225 60.0 6.77
[ 11 ] Sulzer Siedlung, Roter Berg, Gispersleben, Moskauer Platz, 334 60.0 5.47
Hohenwinden
Erfurt average 3,531 61.2 6.60

1990s, many residents moved from the large northern
housing estates in the districts of Berliner Platz, Rieth,
Moskauer Platz, and Roter Berg to the city centre or ful-
filled their dream of owning a home in the country. Vari-
ous urban planning measures have since contributed to a
significant increase in the attractiveness of the area. New
green spaces were built on vacated land and playgrounds
installed in the courtyards. The upgraded housing estates
now provide good access to public transport, short travel
times to care centres, as well as a wide range of wheel-
chair accessible and barrier-free homes, which is increas-
ingly attracting people back to the north of the city. Rental
ranges in Erfurt are interesting owing to their marked vari-
ation. Asking rents on 80 per cent of housing in the Alt-
stadt area [01] ranged from €6.00 to €9.08 per square
metre. This reflects the transformation of recent years,
which brought new-build to the Altstadt and the restora-
tion and redevelopment of many buildings at considerable
expense. Exclusive housing was created in the renovated
Chrestensenhof and the Schottenhöfen, which is often let
to tenants. In six out of 11 areas in Erfurt, the asking rent
increased by more than 2 per cent year on year in 2015,
while rents in four areas remained quite stable. The high-
est rental increase of 5.6 per cent was found in the urban
area comprising Johannesvorstadt, Krämpfervorstadt, and
Hohenwinden [05].

ERFURT is adept at creatively COMBINing transformation and identity

Erfurt, the capital of Thuringia, is the administrative, commercial and service centre of the Free State. The econ-
omy consists of a balanced mix of the engineering, construction, and building materials sectors as well as hor-
ticulture, the trades, and a versatile service industry. Furthermore, Erfurt is also a centre for microelectronics,
micro-systems technology, and solar technology. The city’s university and technical university contribute to an
extensive pool of well-trained professionals. Erfurt has a wide range of different architectural styles and living
qualities. The influx of residents and low construction activity in recent years has resulted in a supply shortage,
particularly in the lower and average-priced segments, driving up rents.

082
 CITY PROFILE n E R F U RT

aVeraGe asKinG renTs in CiTY areas 2015

11

04
10 02 09

05

01

06

03 08

07

Median in €/m²/month

5.47 – 5.63 5.64 – 6.20 6.21 – 6.48 6.49 – 6.65 6.66 – 6.79 6.80 – 7.16 7.17 – 7.49 7.50 – 7.50

083
CITY PROFILE n ESSEN

Essen: Quiet market with a continuing

north-south divide
South of the city centre, with its office high-rise skyline, are attractive residential areas set among
beautiful landscapes. North of the centre, however, many areas show clear traces of the industrial
past. This creates a generally stable yet clearly divided market.

On the one hand, Essen is home to major companies and erage (1.1 per cent). Even the city administration does not
represents a central service hub in the Ruhr area. Five of officially attribute the population growth in recent years
the 50 largest companies in terms of turnover in Germany to economic growth, but rather to the eastward expansion
have their headquarters in the city. The largest compa- of the EU, the crisis in southern Europe and the influx of
nies in Essen include RWE, ThyssenKrupp, Aldi Nord and asylum seekers. The projected population decline of 5 per
HOCHTIEF. On the other hand, Essen continues to suffer cent by 2030 places Essen between the Ruhr area cities
from the decline of the coal and steel industries. The un- of Dortmund (-3.1 per cent) and Duisburg (-7.6 per cent).
employment rate of 12.4 per cent in 2014 is the third high-
est of the 29 cities covered in this report. The growth in
employees subject to social security contributions from
2004 to 2014 was below the average for Germany. Con-
versely, the population growth of 1.4 per cent from the
end of 2011 to the end of 2014 was above the national av-

084
 CITY PROFILE n ESSEN

Essen is a city of revenue giants. Five of the 50 largest companies in Germany

in terms of turnover have their headquarters here. Only the significantly larger
cities of Munich and Hamburg can match this figure.

GOOD LOCATIONS CLOSE TO THE RUHR
Essen’s residential market is far less active than most
other cities of a similar size. The median asking rent of
exactly €6.00 per square metre per month in 2015 ranks
23rd out of the 29 cities in this report – a position shared
with Dortmund – and represents an increase of just
0.3 per cent on the previous year.
Traditionally, the residential market in the city has shown
a north-south divide, which is also evident in the cur-
rent asking figures. The highest median asking rent in
2015 of €7.86 per square metre per month was recorded
in the scenic area to the south west on both sides of the
Ruhr, which includes Werden, Kettwig, Bredeney, Schuir,
Fischlaken, Heidhausen, Margarethenhöhe, and Haar-

085
CITY PROFILE n ESSEN
zopf [09]. This area includes some small suburban cen-
tres surrounded by large numbers of single-family houses.
The best locations are found on the slopes directly above
the Ruhr; a fact not only appreciated by the Krupp fam-
ily with their stately home “Villa Hügel”. The top end of
the residential market is also significantly pronounced in
the southwest of Essen. Apartments in the most expen-
sive decile on the market have asking rents of €10.00 per
square metre or greater. In the south, the recent increase
in asking rents of 2.5 per cent appears unspectacular at
first glance but is actually significantly above the average
for the whole of Essen.
CENTRE IS LESS EXPENSIVE THAN THE SOUTH
The next most expensive parts of the city are also situated
in the south of Essen – also set among attractive land-
scapes but not all in quite such prestigious areas. The me-
dian asking rent in Rüttenscheid, Bergerhausen, Relling-
hausen, and Stadtwald [05] is €7.41 per square metre per
month. However, the increase in asking rents of 1.6 per
cent in 2015 was somewhat lower than in the top loca-
tions. Significantly lower asking rents are found in those
areas in the far southeast of the city, which are close to
the Ruhr yet quite remote from the city and only mod-
erately connected to the city centre. The area including
Heisingen, Byfang, Kupferdreh, Überruhr, and Burgalten-
086
dorf [04] shows a median asking rent of just €6.83 per
square metre. This represents an increase of 1.2 per cent
in 2015, which was moderately above average. In the pre-
vious year, the median asking rent stagnated with an in-
crease of just 0.1 per cent.
Rental values in the centre of Essen are significantly be-
low those in the south, yet still above the median figure
for the city. In the city centre, Ostviertel, Südviertel, Sü-
dostviertel, and Westviertel areas as well as Huttrop [06],
the median asking rent is €6.31 per square metre per
month. Despite the optimal transport links and infrastruc-
ture, this area cannot compete with the green and well-
kept south of the city. The price growth in the city centre
was also modest at 1.4 per cent. This trend towards ur-
banisation is being moderated by high traffic congestion,
some narrow and unattractive post-war architecture as
well as wasteland and old industrial ruins, which can even
be found on the doorstep of Essen’s city centre.
RENTS FALL TOWARDS THE RIVER EMSCHER
All remaining areas are situated in the north and east
of Essen, where median asking rents per square me-
tre are below the levels for the city as a whole. At €5.96,
the rental level in Altendorf, Frohnhausen, and Holster-
hausen [01] to the west of the city centre is still relatively
high for these areas and also represented the strongest in-
crease in the city of 2.6 per cent. The new Thyssen­Krupp
headquarters, which has been under development in
phases since 2010 and will employ around 2,000 people,
may have invigorated the rental market here, albeit only
moderately. Discerning corporate employees often seek
higher quality apartments than the surrounding market
can offer. Apartments on the market in this area measure
an average of 60 square metre; smaller than in all other
areas of the city with the exception of the city centre.
 CITY PROFILE n ESSEN

DISTRIBUTION OF ASKING RENTS IN ESSEN 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

0.7 1.1 29.6 26.9 46.6 46.9 15.9 17.1 5.2 5.6 2.0 2.3
50%

40%

30%

20%

10%

0%

under €4.00 €4.00 to €5.49 €5.50 to €6.99 €7.00 to €8.49 €8.50 to €9.99 €10.00 and over

Essen remains inexpensive. Almost half of all residential listings in 2015 ranged

between €5.50 and €6.99 per square metre while more than a quarter were lower
than €5.50 per square metre.

Median asking rents on the northwestern periphery in
Borbeck, Frintrop, Gerschede, Schönebeck, Bochold, and
Dellwig [03] average €5.89. These districts form part of
the Emscher zone, which is strongly characterised by the
former and remaining industry as well as by east-west
transport routes, such as the A 42 (Emscher expressway).
The area includes some densely developed districts, some
smaller settlements and some clearly identifiable subur-
ban centres, particularly in Borbeck. However, the 2.2 per
cent increase in the median asking rent per square metre
in 2015 was above the citywide average.
MODEST RENTS AT THE WORLD HERITAGE SITE
The area including the districts of Stoppenberg, Nord­
vier­tel, Katernberg and Schonnebeck [08] extends to the
north and northeast of the city centre to the periphery to-
wards Gelsenkirchen. The median asking rent in this area
stood at €5.70 per square metre per month in 2015. The

Key Figures for the housing market

Essen North Rhine-Westphalia Germany

Average asking rent 2015 in €/m²/month 6.00 6.14 6.51

Average size of apartments on offer 2015 in m² 64.0 69.9 68.0
Vacancy rate in apartment buildings 2014 in % 3.4 3.1 3.0
Newly finished apartments1) per 1,000 residents 2014 1.3 2.4 2.7
Of which are in apartment buildings 2)
0.7 1.3 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

087
CITY PROFILE n ESSEN

Asking Rents in ESSEN 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ] Altendorf, Frohnhausen, Holsterhausen 1,945 60.0 5.96

[ 02 ] Altenessen, Karnap, Vogelheim 715 61.0 5.55
[ 03 ] Borbeck, Frintrop, Gerschede, Schönebeck, Bochold, Dellwig 1,576 63.1 5.89
[ 04 ] Heisingen, Byfang, Kupferdreh, Überruhr, Burgaltendorf 653 72.0 6.83
[ 05 ] Rüttenscheid, Bergerhausen, Rellinghausen, Stadtwald 880 66.0 7.41
[ 06 ] Stadtkern, Ost-, Süd-, Südost- and Westviertel, Huttrop 1,002 60.0 6.31
[ 07 ] Steele, Kray, Horst, Leithe, Freisenbruch, Frillendorf 1,456 67.7 5.51
[ 08 ] Stoppenberg, Nordviertel, Katernberg, Schonnebeck 1,268 61.0 5.70
[ 09 ] Werden, Kettwig, Bredeney, Schuir, Fischlaken, Heidhausen, 929 77.4 7.86
Margarethenhöhe, Haarzopf
Essen average 10,424 64.0 6.00

area is home to the University of Duisburg-Essen and the
Zollverein coal mine; a UNESCO World Heritage Site. The
area of northern Essen to the west also shows a median
asking rent of €5.70. Altenessen, Karnap, and Vogel-
heim [02] comprise a partly ragged settlement structure
with residential areas surrounded by commercial property,
tips and remaining greenery and that partly lie north of
the Emscher expressway. The reason for creating many of
these settlements, namely the proximity to the mines, has
long since disappeared. A small ray of hope may be that
median rents in the area rose by 1.5 per cent from 2014 to
2015. However, at €5.55 per square metre, landlords con-
tinue to demand modest rents in the area.
At the bottom of the rental rankings are the eastern dis-
tricts of Steele, Kray, Horst, Leithe, Freisenbruch, and
Frillendorf [07]. These are districts of varying quality, partly
bisected by the Ruhr expressway and the main railway
line and mixed with commercial property and small green
spaces. Median asking rents here are a moderate €5.51 per
square metre. The area includes a large number of post-war
structures, often of a modest standard. The least expen-
sive decile of apartments has a maximum asking rent of
€4.49 per square metre, the lowest figure in Essen.

STABILITY IN THE SOUTH, UNCERTAINTY IN THE OLD INDUSTRIAL DISTRICTS

From an economic perspective, the weaknesses of the old industries have just as much impact as the strengths
of the new service and knowledge sectors. This contradiction is also reflected in the residential market. There
is a significant divide between the southern city districts and the traditional workers’ areas in the north. Yet,
throughout the city, there are no major swings in the residential markets, but a slight to moderate rise in ask-
ing rents almost without exception. Investments are significantly more expensive in the south of Essen than in
the northern districts, where there are still many remnants of the old industries. However, the jobs once offered
there are no longer available.

088
 CITY PROFILE n ESSEN

aVeraGe asKinG renTs in CiTY areas 2015

02

03 08

06
01 07

05

04

09

Median in €/m²/month

5.51 – 5.55 5.56 – 5.70 5.71 – 5.89 5.90 – 5.96 5.97 – 6.31 6.32 – 6.83 6.84 – 7.41 7.42 – 7.86

089
CITY PROFILE n F R A N K F U RT A M M A I N

Frankfurt am Main: Global city on the move

Frankfurt’s high desirability ensures constant population growth and excess demand for the
provision of housing. To create new living space, the City is making use of subsidy programmes,
the Residential Building Land Development Programme, densification and changes of use.

From a hub of European trade routes since the Middle
Ages, Frankfurt has developed into a major European fi-
nancial and commercial centre. In addition to the Euro-
pean Central Bank, the European Banking Authority also
has its headquarters here. Frankfurt’s exhibition centre
is one of the largest trade fair venues in the world while
Frankfurt Airport connects the city with 300 destinations
in 110 countries. Frankfurt is the core city of the Rhine-
Main region and home to some 5.5 million people as well
as 365,000 companies, which generate an annual gross
domestic product of €200 billion. The population in Frank-
furt stood at 717,624 inhabitants at the end of 2014, rep-
resenting an increase of 6.1 per cent compared with the
end of 2011 and the second-highest population growth of
all 29 cities analysed, behind Leipzig. With 300,000 com-
muters a day, the Main metropolis is regarded as a transit
city par excellence. This global city is home to people from
180 nations. Around one in four residents does not hold a
German passport. Only around half of Frankfurt’s residents
live in the city for longer than 15 years. The rental apart-
ment market therefore accounts for the majority of hous-
ing, less than 20 per cent of which is owner occupied. The
numerous international schools and research institutes as
well as the universities, theatres, museums, the River Main
and many green spaces make the city an attractive place
to live. The purchasing power in the city is correspond-
ingly high. With an average of €25,168 per capita, Frankfurt
ranks third in this respect behind Munich and Dusseldorf.
However, Frankfurt’s projected growth in the number of
households of 3.4 per cent by 2030 significantly lags that
of the other top seven cities, whose growth projections
range from 5.4 to 8.2 per cent.

090
 CITY PROFILE n F R A N K F U RT A M M A I N

Frankfurt has an extremely high employment density. The number of employees

per 1,000 inhabitants is almost 950. Approximate comparable figures include 850 for
Dussel­dorf, 730 for Munich, 670 for Hamburg and 520 for Germany as a whole.

HIGH SURPLUS DEMAND DESPITE INCREASING
BUILDING ACTIVITY
Building activity in Frankfurt has increased significantly in
recent years. In 2014, almost 3,600 new homes were com-
pleted (in residential and non-residential buildings includ-
ing residential homes). The vast majority of these resi-
dential units were in apartment buildings. This completion
volume represents a strong rise of 28 per cent compared
with the previous year. The construction volume relative to
the population size in Frankfurt is also high compared with
the largest German cities. Nevertheless, supply is not suf-
ficient to satisfy the strong demand. The residential supply
rate, which indicates the ratio of residential units to house-
holds, was at 93.7 per cent at the end of 2013. There is a

091
CITY PROFILE n F R A N K F U RT A M M A I N
particular supply shortage in the low-priced housing seg-
ment and the particularly popular districts, such as West-
end, Sachsenhausen, and Bornheim.
MULTI-CHANNEL HOUSING PROCUREMENT
The shortage of housing in Frankfurt cannot be resolved via
densification, development of gaps between buildings, and
the conversion of commercial space alone. Consequently,
the City has further extended its residential development
land programme from 2011, designating further poten-
tial space for around 6,000 residential units; it has already
started 15 development plans. Accordingly, the programme
provides for a potential total of 30,270 residential units.
The city is pursuing a second channel via the subsidisation
of housing construction, acquiring occupancy rights and
implementing subsidy programmes for new construction.
The “Mittelstandsprogramm” subsidy programme for the
construction of rental apartments for the middle-income
target group falls within this category, along with specific
subsidy programmes for student housing and living space
suitable for senior citizens. As instruments against “luxury
renovations” and gentrification, the city uses conserva-
tion and environmental protection statutes and is work-
ing towards a 30 per cent social housing quota for larger
construction projects within the context of planning law.
While the Mietpreisbremse (capping of rents on re-letting)
planned by the state of Hesse regards Frankfurt as a city
with a “strained residential market”, this does not apply to
the four districts of Berkersheim, Eckenheim, Harheim, and
Unterliederbach.
092
DISTRICTS ARE CHANGING THEIR IMAGE
Many large-scale projects will change the Frankfurt city-
scape over the coming years. With the restructuring of
the area around the cathedral and city hall, the histori-
cal centre will rise again with a new identity, and the
residential use that was lost during the Second World
War will be restored. Ostend, an industrial and working-
class district, will be realigned as a modern, trendy dis-
trict alongside the construction of the European Central
Bank. Within eyeshot, a mixed-use district with around
1,000 apartments will be created in Sachsenhausen with
the conversion of the former Henninger brewery site. The
area around the railway station, which was stigmatised
for a long time due to its red light district, is a prime ex-
ample of how a well thought-out subsidy programme can
contribute to the enhancement of a district. This is ap-
parent from the significant population growth and rising
number of apartments. Large residential districts are also
planned for the Siemens site south of Rödelheimer Land-
straße and on the former Goethe University site in the
form of the new “Kultur-Campus” urban quarter. One ex-
ample of the successful revitalisation of an infrastructural
wasteland is the Europaviertel district, where a number of
urban quarters with different characters are being devel-
oped through to 2025. In the direct vicinity, conversion
and revitalisation will give the former working-class Gal-
lus district 1,500 new apartments and 600 student apart-
ments. The constant influx of new inhabitants is also cur-
rently resulting in a renaissance of vertical development
in Frankfurt and a change of image for high-rise blocks.
These are now being developed in prime city locations
with resource-efficient designs by renowned architects
and with numerous additional benefits.
 CITY PROFILE n F R A N K F U RT A M M A I N

DISTRIBUTION OF ASKING RENTS IN FRANKFURT 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

4.9 4.4 17.8 16.7 28.5 28.1 24.5 25.1 13.6 15.7 10.7 9.9
40%

30%

20%

10%

0%

under €8.00 €8.00 to €9.99 €10.00 to €11.99 €12.00 to €13.99 €14.00 to €15.99 €16.00 and over

Some 53.2 per cent of asking rents in Frankfurt lie between €10.00 and €13.99 per
square metre. However, the city also has a high proportion (around 25 per cent) of
high-priced rents from €14.00 upwards.

RISING RENTS AND PRICES
Rents continue to rise in Frankfurt. The citywide average
rose from €11.89 in 2014 to €12.00 per square metre in
2015, with rents in the mid-price segment ranging from
€8.92 to €15.98 per square metre. In the popular West­
end and Nordend West [20] area near the centre, the
median asking rent rose from €14.47 to €15.00 per square
metre in 2015 following a slight decrease in the previous
year. In the most expensive area of Frankfurt, rents in the
mid-price segment range from €11.76 to €19.44. The tra-
ditionally sought-after, central areas of Sachsenhausen
North [16] (€13.96), Altstadt , Ostend [01] (€13.67),
Nord­end East, Nordend West [12] (€13.03), Gutleutvier-
tel and Bahnhofsviertel [08] (€13.00) and Bornheim [05]
(€12.38) are in demand and correspondingly expensive.
At €9.51, the lowest-priced rental apartments are avail-
able in the western outskirts of the city in the Höchst,
Unter­lieder­bach, Zeilsheim, Sindlingen and Sossen-

Key Figures for the housing market

Frankfurt Hesse Germany

Average asking rent 2015 in €/m²/month 12.00 8.18 6.51

Average size of apartments on offer 2015 in m² 72.0 74.8 68.0
Vacancy rate in apartment buildings 2014 in % 0.6 2.1 3.0
Newly finished apartments1) per 1,000 residents 2014 5.0 2.5 2.7
Of which are in apartment buildings 2)
4.4 1.5 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

093
CITY PROFILE n F R A N K F U RT A M M A I N

Asking Rents in FRANKFURT Am Main 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ] Altstadt, Ostend 371 72.9 13.67

[ 02 ] Bergen-Enkheim, Fechenheim, Riederwald 387 71.0 9.82
[ 03 ] Berkersheim, Preungesheim, Eckenheim 295 75.7 10.82
[ 04 ]
Bockenheim 956 70.0 12.84
[ 05 ]
Bornheim 442 60.0 12.38
[ 06 ]
Dornbusch 282 75.0 12.26
[ 07 ]
Gallus 514 86.0 12.06
[ 08 ] Gutleutviertel, Bahnhofsviertel 606 78.0 13.00
[ 09 ] Höchst, Unterliederbach, Zeilsheim, Sindlingen, Sossenheim 623 65.0 9.51
[ 10 ] Nieder-Erlenbach, Nieder-Eschbach, Bonames, Harheim, Kalbach 308 76.0 9.72
[ 11 ] Niederursel, Heddernheim, Nordweststadt, F. Berg, Eschersheim 547 68.0 10.50
[ 12 ] Nordend East, Nordend West 773 65.0 13.03
[ 13 ] Praunheim, Hausen, Ginnheim 398 70.0 10.98
[ 14 ]
Riedberg 175 90.0 12.07
[ 15 ]
Rödelheim 305 65.0 10.83
[ 16 ]
Sachsenhausen-Nord 810 80.6 13.96
[ 17 ] Sachsenhausen-Süd, Niederrad, Oberrad 1,134 70.0 11.49
[ 18 ] Schwanheim, Griesheim, Nied 416 66.0 9.72
[ 19 ]
Seckbach 209 65.0 11.99
[ 20 ] Westend North and South, Nordend West 1,081 95.0 15.00
Frankfurt average 10,632 72.0 12.00

heim [09] districts. The largest increase in asking rents Frankfurt have asking rents of almost €16 per square me-
of 9.4 per cent was registered in the area comprising Alt- tre and higher. A mere one in 10 apartments have asking
stadt and Ostend. However, these average rents should rents below €8.92.
not conceal the fact that the situation can look completely
different in the micro-locations, as well as in the market
segments. Some 10 per cent of apartments advertised in

FRANKFURT’S ATTRACTIVENESS RAISES CHALLENGES FOR THE GLOBAL CITY

Despite rising construction activity, strong population growth in recent years has resulted in an unbalanced
housing market in Frankfurt. The housing supply rate is presently 93.7 per cent. There are particular shortages in
the affordable segment and in central districts close to the city centre, which are also particularly popular with
investors. The high demand means that there is now scarcely any perceptible vacancy. The well-developed public
transport network now extends the city’s sphere of attractiveness to a 45-minute radius around the centre.
Industrial and infrastructural sites are being vacated and converted, which will revitalise a number of districts.

094
 CITY PROFILE n F R A N K F U RT A M M A I N

aVeraGe asKinG renTs in CiTY areas 2015

10

14

11

03 19 02

13
06

15
04 20 12 05

01

09 07 08
16

18
17

Median in €/m²/month

9.51 – 9.76 9.77 – 10.74 10.75 – 11.04 11.05 – 12.03 12.04 – 12.24 12.25 – 12.88 12.89 – 13.43 13.44 – 15.00

095
CITY PROFILE n FREIBURG

Freiburg: The successful green city with

Mediterranean flair
Freiburg has forged a reputation in the fields of solar technology, environmental and climate pro­
tection, as well as sustainable construction. The Baden lifestyle, proximity to France and Switzerland
and good educational infrastructure also ensure constant population growth.

Freiburg is situated in the far southwest of Germany and
normally provides its 220,203 inhabitants (end of 2014)
with more than 1,800 hours of sunshine per year. Basel
in Switzerland is just 70 kilometres away while Colmar in
France is within approximately 50 kilometres. The charac-
teristic streams of Freiburg’s Altstadt (Old Town), which
once provided the city with service water and fire-fight-
ing water, amaze almost 1.5 million tourists each year.
The symbol of the city is Freiburg’s Minster, which was
one of the few buildings to survive the heavy bombing
of 27 November 1944 unscathed – the bombing reduced
large parts of the city to rubble and ashes. The rebuild-
ing of Freiburg was sympathetic to the historic cityscape,
with numerous reconstructions contributing to the allure
of the city centre. The University of Freiburg, founded in
1457, has almost 25,000 registered students from more
than 100 nations and has been one of the top nine uni-
versities in Germany since 2007. Freiburg is also home to
renowned research institutions as well as several Fraun-
hofer and Max-Planck institutes. Freiburg is a vibrant city
with an emphasis on outdoor activities, a varied cultural
and restaurant scene, a number of parks and forest areas
and a well-established education and support infrastruc-
ture. “There are two types of people: Those who live in
Freiburg and those who want to move to Freiburg,” resi-
dents declare proudly. In contrast with many other cities,
net migration in Freiburg is attributable to almost all cities
and districts of Germany and the number of people who
would potentially relocate to the city is correspondingly
high. According to BBSR projections, the city’s popula-
tion is expected to rise by 5.8 per cent by 2030 compared
with 2012, while the number of households is predicted to
grow by as much as 10.3 per cent. Freiburg is also a young
city. The proportion of under-30s is 38.2 per cent (Ger-

096
 CITY PROFILE n FREIBURG

Bicycle traffic accounts for around 28 per cent of overall traffic in Freiburg.
Only Münster in North Rhine-Westphalia has a higher proportion of cyclists among
Germany’s major cities.

many: 30.2 per cent), while only 21.1 per cent of inhabit-
ants are over 60 years old (Germany: 27.4 percent). How-
ever, this age structure is expected to change significantly
by 2030 according to the City’s own projections. While
population growth is predicted across all age groups (with
the exception of the 45 to under-60 age group) by far the
strongest increase is expected in the over-60 age groups.
HEALTHCARE AND SUSTAINABILITY
Compared with other cities in Baden-Württemberg, Frei-
burg is heavily dependent on healthcare and social ser-
vices. Some 24.1 per cent of employees subject to social
security contributions work in these sectors. Conversely,
manufacturing in Freiburg accounts for a smaller propor-
tion of employment than any other city in Baden-Würt-

097
CITY PROFILE n FREIBURG
temberg with 13.3 per cent. Overall, 86.5 per cent of em-
ployees subject to social security contributions work in
Freiburg’s services sector. The number of employees in-
creased by 22.2 per cent between 2004 and 2014. Only
Berlin and Leipzig recorded higher growth among the
29 cities analysed in this report. Besides medicine and
healthcare, sustainability has become integral to the im-
age of Freiburg. With 12,000 employees in 2,000 com-
panies, the environmental industry and environmental
research contributes around €650 million to the city’s
economy. The fields of research and development, know­
ledge transfer and environmental education are key driv-
ers in developing the city’s portfolio in the sector with a
focus on solar technologies, renewable energy, energy
efficiency, planning and construction and environmental
technology. Freiburg recognised at an early stage that cli-
mate protection, energy supply and urban development
should not be managed separately and, for years, has
considered energy-related aspects when developing parts
of the city. The city hopes to reduce harmful emissions
by at least 50 per cent by 2030 and to become climate
neutral by 2050. In addition to individual flagship pro-
jects, such as the first energy self-sufficient solar house,
the rotating “heliotrope”, the solar settlement from archi-
tect Rolf Disch and the first multi-storey passive residen-
tial building in Germany at Bugginger Straße 50, since
1998 Freiburg has also boasted a low-traffic eco-district,
Vauban, in which civic engagement, communal construc-
tion, varied architecture and ecological living are prevail-
ing themes. Low-energy construction is obligatory, while
098
passive construction, plus-energy construction and the
use of solar technology are usually standard. The “Green
City Freiburg” cluster initiative brings together more than
145 participants from the solar and environmental indus-
try. In 2012, Freiburg received the German Sustainability
Award for the most sustainable major city in Germany.
SUPPLY AND DEMAND NOT IN BALANCE
Property built between 1949 and 1978 is by far the most
prevalent period in Freiburg, accounting for 44.8 per cent
of housing. Around one fifth was built before 1948 and
just 8.7 per cent of housing has been built since 2000.
Lettings account for 69.6 per cent of housing in Freiburg.
Overall, the Freiburg market is characterised by signifi-
cant surplus demand. The active market vacancy rate ac-
cording to the CBRE-empirica vacancy index stood at just
0.7 per cent in 2014; among the lowest in Germany. The
current peaking demand is partly attributable to the con-
stant rise in refugee figures. The number of completed
residential units in residential and non-residential build-
ings stood at 677 in 2014 (including residential homes);
significantly below the annual requirement of 1,000 units
identified by the City in its “Handlungsprogramm Woh-
nen” (Housing Action Programme). As part of the mu-
nicipal action programme, the City developed strate-
gies in mid-2013 to create a balanced housing market. In
mid-May 2015, the municipal council decided to increase
the proportion of subsidised rental apartments that de-
velopers must provide in new projects from 30 to 50 per
cent. The City also considers it essential to designate new
space to cover housing requirements. Such space has
been earmarked for development in the new Dietenbach
district from around 2020. Housing for 11,500 additional
residents is planned over an area covering some 98 hec-
tares. Large residential developments are also currently
 CITY PROFILE n FREIBURG

DISTRIBUTION OF ASKING RENTS IN FREIBURG 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

4.0 4.2 19.3 14.0 33.7 33.3 29.6 32.5 8.6 10.9 4.7 5.0
40%

30%

20%

10%

0%

under €7.00 €7.00 to 8.99 €9.00 to 10.99 €11.00 to 12.99 €13.00 to 14.99 €15.00 and over

The high rental levels in Freiburg are reflected in the distribution of asking rents.
Almost half of all new lettings are advertised for more than €11.00 per square metre.

under way in the Gutleutmatten district in Haslach, the
Güterbahnhof North urban quarter and the Ganther Cam-
pus in Oberau. To control rents on existing housing, Frei-
burg lowered its cap on rental increases to 15 per cent in
July 2015, extended the general blocking period on land-
lords serving termination notices on tenants for the pur-
pose of converting rental apartments into condominiums
by five years and introduced the Mietpreisbremse (cap-
ping of rents on re-letting) on 1 November 2015.
RISING RENTS IN ALL DISTRICTS
The median exclusive asking rent in Freiburg rose to
€10.91 per square metre in 2015 compared with €10.57 in
the previous year. This places Freiburg level with Stuttgart
and behind only Munich (€14.61) and Frankfurt (€12.00)
in the 29 cities analysed in this report. However, the aver-
age purchasing power in Freiburg is not only significantly
below that of the inhabitants of Munich, Frankfurt and
Stuttgart, it is also below the German national average,

Key Figures for the housing market

Freiburg Baden-Württemberg Germany

Average asking rent 2015 in €/m²/month 10.91 7.82 6.51

Average size of apartments on offer 2015 in m² 66.0 75.0 68.0
Vacancy rate in apartment buildings 2014 in % 0.7 1.8 3.0
Newly finished apartments1) per 1,000 residents 2014 3.0 3.1 2.7
Of which are in apartment buildings 2)
2.7 1.6 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

099
CITY PROFILE n FREIBURG

Asking Rents in FREIBURG 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ]
Altstadt 105 60.0 11.67
[ 02 ] Brühl, Hochdorf, Landwasser, Mooswald 234 67.4 11.07
[ 03 ] Haslach, Weingarten, Stühlinger, Betzenhausen 347 56.6 10.42
[ 04 ] Herdern, Neuburg 132 82.0 11.94
[ 05 ] Kappel, Waldsee, Günterstal, Wiehre, Oberau 298 66.5 11.52
[ 06 ] Opfingen, Tiengen, Munzingen, Waltershofen 104 79.3 8.40
[ 07 ] St. Georgen, Rieselfeld, Mundenhof 133 77.0 10.55
Freiburg average 1,353 66.0 10.91

indicating a wide discrepancy between rent and income. ment may result in further rental growth over the coming
Some 10 per cent of apartments in Freiburg were adver- years. The least expensive housing in 2014 was found in
tised for at least €13.68 per square metre in 2015. The the eastern suburbs of Opfingen, Tiengen, Munzingen and
highest median rent of €11.94 was found in the tradi- Waltershofen [06], where the median asking rent stood at
tionally sought-after area comprising Herdern and Neu- €8.40 per square metre.
burg [04]. This area is characterised by a large amount of
Wilhelminian-period properties and villas with extensive
gardens. In recent years, developers have been increas-
ingly acquiring such villa sites and replacing the existing
property with high-value condominiums. With an aver-
age floor area of 82 square metre, properties in this area
are the largest in the city. Freiburg’s Altstadt [01] re-
corded a median asking rent of €11.67 per square metre.
The transformation and restructuring of the entire area
between Platz der Universität, Platz der Alten Synagoge,
the Rotteckring, Fahnenbergplatz, and the victory monu-

FREIBURG FOCUSES ON SUSTAINABILITY AND HEALTHCARE

The southernmost major city in Germany benefits from its Mediterranean climate, strong economy and constant
population growth. The geographically favourable location close to the French and Swiss borders not only draws
large numbers of retail tourists to the city from these neighbouring countries, it also promotes collaboration within
the Upper Rhine tri-national metropolitan region. Freiburg’s growth sectors include healthcare, the environmen-
tal industry and environmental research. With its universities and educational and research institutions, the city is
also well positioned internationally. The popularity of the university city poses the challenge of providing sufficient
residential development land to satisfy the high demand for housing and to prevent rents from rising even further.

100
 CITY PROFILE n FREIBURG

aVeraGe asKinG renTs in CiTY areas 2015

02

04
06 07 03 01

05

Median in €/m²/month

8.40 – 9.91 9.92 – 10.49 10.50 – 10.68 10.69 – 11.07 11.08 – 11.41 11.42 – 11.60 11.61 – 11.74 11.75 – 11.94

101
CITY PROFILE n HALLE

Halle: Demand is on the rise – central areas

are the main beneficiaries
Following a long period of contraction in the population and labour market, the trend in Halle
has finally reversed; the economy, population figures and rents have all returned to tentative growth.
Demand for housing is focused on historical buildings in the centre.

After a long period of crisis for the traditional industrial
city of Halle, vital sectors have stabilised or are even re-
covering. This is true of chemicals and mechanical engi-
neering as well as food and beverages. Service providers
from various fields, including logistics, media, and bio-
technology companies as well as call centres have been
added to the sector mix. The unemployment rate has
fallen from more than 20 per cent to 11.8 per cent (2014)
over the last 10 years. The number of inhabitants has
also been growing since 2011 following 20 years of con-
traction. However, the population is ageing. The propor-
tion of under-18s is below the German average while the
over-60 age group is relatively larger, which is typical of
the age distribution in eastern German cities. The num-
ber of households is also growing – not least because the
average household size continues to decrease in Halle. In
2000, the average was 1.98 persons; by 2014, this had
shrunk to a mere 1.72. Nevertheless, significant decreases
in population and household numbers are projected by
2030. Of the 29 cities studied, only Chemnitz fares worse
than Halle in this respect.
DEMAND FOR RENOVATED OLD BUILDINGS
In the previous decade, vacancy and demolition were the
overriding themes for Halle’s housing providers. The num-
ber of inhabitants had fallen by around a quarter in the
city as a whole since 1990. In some districts, population
losses were much higher. The number of inhabitants in
Halle-Neustadt, for instance, declined by around half, and
the population in the southern area of Silberhöhe, domi-
nated by slab construction, remains at around one third of
previous levels. Areas with historical buildings close to the
city centre, such as Glaucha, were also affected by high va-
cancy rates and substantial standstill during renovation.

102
 CITY PROFILE n HALLE

The medieval, early-modern, and magnificent late 19th and early 20th century
building stock in Halle’s historic old town make it one of the largest architectural
landmarks in Germany.

The (provisional) turnaround in the economy and popu-
lation has now led to a recovery in the housing market.
The vacancy rate fell from 10.5 per cent to 8.2 per cent
between 2009 and 2014, yet remains the second high-
est of all the cities analysed in this report after Chemnitz.
In 2015, the median asking rent of €5.63 was 1.8 per cent
higher than in the previous year. This puts Halle on equal
footing with Leipzig and ahead of the two eastern German
cities of Magdeburg (€5.45) and Chemnitz (€5.00), as
well as one western German city, Duisburg (€5.30).
Apartment seekers in Halle have clear location priorities,
which is expressed in the asking rents advertised by land-
lords. Tenants prefer central locations and renovated his-

103
CITY PROFILE n HALLE
torical buildings. The highest asking rents by far were re-
ported in the Mitte and northern city centre areas of Halle
with a median of €6.57 per square metre. This represents
an increase of 3.7 per cent compared with the previous
year; the strongest growth across the entire city. In Mitte,
there are still traces of the middle ages and later periods,
as well as attempts to fashion GDR-era slab constructions
into an Old Town area. The northern part of the centre is
characterised by Wilhelminian-period buildings. In ad-
dition to the conventional city-centre service companies,
large parts of the university, the state library, the Leo­pold­
ina Academy of Sciences and the Opera are located here.
There is also no lack of green spaces in the area, which
boasts the botanical gardens, the city park and the banks
of the River Saale. The Mühlweg district is particularly
popular with apartment seekers. This area also accounts
for the majority of the local prime segment. Asking rents
per square metre for the most expensive decile of apart-
ments in the Mitte and northern city centre [01] areas
start from €8.42.
Halle North [02] ranks second, with a median asking rent
of €6.00. However, the median asking rent stagnated in
2015. The part of this district closer to the city centre is
characterised by historical buildings and includes facili-
ties such as the Burg Giebichenstein University of Art and
Design, which stimulate demand. The Paulusviertel area,
which is adjacent to the northern city centre, is also rather
picturesque thanks to its stylish historical buildings nes-
tled among green spaces. Demand for condominiums in
this area has noticeably increased in recent years. The
outer parts of northern Halle are characterised by pre-
dominantly small-scale development, as well as slab con-
struction in the small area of Trotha and village-like loca-
tions such as Seeben, Tornau, and Mötzlich.
104
FEWER CONCERNS IN GLAUCHA
The third-ranked area is also largely dominated by histori-
cal buildings; the southern city centre [05] with a median
asking rent of €5.71 per square metre – eight cents above
the average for the city as a whole. The area is immediately
adjacent to the City submarket. However, it is separated by
a controversial and dilapidated high street, which is most
likely due for redevelopment. Immediately to the south, the
Francke Foundations, a 300-year-old education and social
institution, are located next to the Federal Cultural Founda-
tion. The surrounding historical district of Glaucha has long
been a cause of concern for the urban development office
due to high vacancy rates and the threat of decay. However,
the situation has improved considerably thanks to urban
planning measures, and a range of Wilhelminian-era build-
ings have been renovated. The south of the area is charac-
terised by less dense, garden city type development, which
is limited to residential buildings.
The next district in the rental rankings is already below the
citywide average; the east of the city [03] at €5.50 per
square metre. There are barely any dense urban structures
here. The area adjacent to the city centre is dominated
by the main train station and various commercial and
residential areas, as well as numerous allotments in the
Diesel­straße area. On the outskirts are the small districts
of Diemitz, Dautzsch and Reideburg. Parts of the area are
only moderately developed. Kanena and Bruckdorf are still
very village-like. These are separated by a commercial zone
and a shared S-Bahn station. The median asking rent in the
eastern part of the city rose by 0.9 per cent in 2015 follow-
ing a strong increase of 7.7 per cent in the previous year.
 CITY PROFILE n HALLE

DISTRIBUTION OF ASKING RENTS IN HALLE 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

5.3 5.2 21.9 20.2 36.0 35.0 24.4 25.9 7.2 8.3 5.3 5.3
40%

30%

20%

10%

0%

under €4.00 €4.00 to €4.99 €5.00 to €5.99 €6.00 to €6.99 €7.00 to €7.99 €8.00 and over

Asking rents remain at a moderate level. More than 60 per cent of the apartments
on the market were listed for less than €6.00 per square metre in 2015. However,
the proportion of listings from €7.00 increased to 13.6 per cent.

AREAS OF SLAB CONSTRUCTION AFFORDABLE
The lowest-ranking locations in terms of asking rents for ur-
ban areas in Halle were also those with the largest areas
of Plattenbau buildings (slab construction). Second from
the bottom with an average of €4.99 is the south of the
city [04], which includes the Silberhöhe district. The slab
constructions were built from 1979 and subject to a large
wave of demolition precipitated by severe vacancies during
the last decade which, ironically, started with the building
association “Frohe Zukunft” (“bright future”). Two 22-sto-
rey apartment blocks were among the demolitions. In total,
more than 5,500 homes were demolished. Today, Silber-
höhe has recovered from the period of extreme vacancies.
The south of Halle also includes the area around Pestalozzi-
park with building association and terraced housing, the
Südstadt area with its slab construction and buildings from
the 1950s and 1960s as well as the districts of Ammendorf,
Beesen, Osendorf, Planena, Radewell, and Rosengarten. The
area comprises various leafy residential areas contrasted
with a dense mix of residential and commercial uses.

Key Figures for the housing market

Halle Saxony-Anhalt Germany

Average asking rent 2015 in €/m²/month 5.63 5.15 6.51

Average size of apartments on offer 2015 in m² 58.0 59.9 68.0
Vacancy rate in apartment buildings 2014 in % 8.2 7.0 3.0
Newly finished apartments1) per 1,000 residents 2014 0.6 1.0 2.7
Of which are in apartment buildings 2)
0.1 0.3 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

105
CITY PROFILE n HALLE

Asking Rents in HALLE 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ] Mitte, Northern City Centre 1,290 54.8 6.57

[ 02 ]
North 1,195 58.2 6.00
[ 03 ]
East 675 61.0 5.50
[ 04 ]
South 1,164 57.0 4.99
[ 05 ] Southern City Centre 1,382 64.6 5.71
[ 06 ]
West 936 57.0 4.79
Halle average 6,642 58.0 5.63

The least expensive district is Halle West [06], which is
located on the opposite side of the Saale and was incor-
porated into the city in 1990. This includes the residential
areas of Dölau and Heide as well as Heide South, with a
host of individual new buildings. The most prominent area,
however, is Halle-Neustadt, which features extensive Plat-
tenbau buildings and is abbreviated to “Ha-Neu” by resi-
dents and outsiders alike. The area has lost nearly half of
its population over the past 25 years, although it is now
home to one in five inhabitants of Halle, and, despite nu-
merous demolitions, still struggles with high vacancy rates
to this day. Even attempts to present the area as part of a
“Twin Cities” concept alongside historic Halle as part of the
2010 International Building Exhibition Saxony-Anhalt did
not alleviate the situation. The median asking rent remains
a mere €4.79 per square metre and rose by only 0.4 per
cent in 2015 compared with the previous year. As a result,
Halle West recorded the second weakest increase in the
city. The most affordable decile of apartments in the area
is advertised at no more than €3.53 per square metre. That
is the lowest figure of any district in the 29 cities included
in this report.

GOOD DEVELOPMENT PROSPECTS IN THE CITY CENTRE

Following 20 years of painful contraction, Halle has emerged as a leaner city and, owing to moderate yet con-
stant positive net migration, has seen a return in population growth in recent years. Vacancy and demolitions
were particularly prevalent in the districts comprising Plattenbau buildings, which are less attractive in terms of
architecture, urban planning, and location. At the same time, the redeveloped city centre stands out as a mixed,
attractive centre with historical flair and high quality of living in some areas. In the foreseeable future, demand
for housing is expected to remain focused here. A good proportion of the remaining Plattenbau may well find
demand in the low-rent segment. However, a city such as Halle must ensure that these do not become deprived
areas by supporting them with appropriate development concepts.

106
 CITY PROFILE n HALLE

aVeraGe asKinG renTs in CiTY areas 2015

02

06

01
03

05

04

Median in €/m²/month

4.79 – 4.92 4.93 – 5.12 5.13 – 5.44 5.45 – 5.61 5.62 – 5.75 5.76 – 5.93 5.94 – 6.21 6.22 – 6.57

107
CITY PROFILE n HAMBURG
Hamburg: The cosmopolitan, green
and growing city on the water
Both the economy and the population are growing in the Hanseatic City. Hamburg is the core city
of a metropolitan region home to more than 5 million people. Start-ups and corporate relocations add
around 10,000 companies to the city each year.
Water is integral to life in Hamburg, from the noisy and
bustling port to the noble elegance of the Alsterarkaden
shopping arcade and the idyllic green spaces around the
Außenalster (Outer Alster lake). The city is also inter-
sected by a 60-kilometre-long network of canals and dikes.
The proximity of complete opposites is also reflected in
the city districts – the noble Blankenese, the scene in the
Schanze and the working-class neighbourhoods of Wil-
helmsburg. Trading in goods from both Germany and
abroad has not only provided the Hanseatic City with fi-
nancial prosperity but also its cosmopolitan outlook and
awareness of the need to co-operate. Hamburg’s notable
civic engagement is expressed in a system of foundations
that launched the construction of the Elbe Philharmonic
Hall and was instrumental in the contracts between the
Senate, districts and property sector to promote housing
construction. There are currently more than 1,300 foun-
108
dations based in Hamburg with assets totalling some
€8 billion. On the other hand, scarcely any other city is as
frequently beset with citizens’ initiatives, petitions, and
demonstrations for various needs and interests. However,
ultimately, solutions are normally found that are supported
by a majority. The historic Gängeviertel district, for exam-
ple, which was sold to an investor in 2008 and is largely
due to be redeveloped with new-build, is currently being
extensively renovated by the City. It is part of the Hamburg
residents’ sense of identity to succeed in creating the new
without destroying the old. This is visibly manifested in
the HafenCity and Speicherstadt districts which, together
with the Kontorhausviertel district, were entered on the
UNESCO World Heritage List in July 2015. The European
Green Capital of 2011 is pursuing its own ambitious climate
objectives. Hamburg aims to reduce its CO2 emissions by
80 per cent to just 4 million tonnes by 2050.
 CITY PROFILE n HAMBURG

Container handling at the port of Hamburg has enjoyed rapid growth.

While, statistically speaking, 1.2 containers per Hamburg resident passed through
the port in 1990, by 2014 this figure had risen to 5.5 per resident.

GROWTH IN THE ECONOMY AND POPULATION
Hamburg is one of the most dynamic metropolises in the
European Union and a magnet for many international com-
panies, institutions and professionals. The city is currently
home to some 250,000 persons from 185 nations, who
have chosen to live and work in Hamburg. Situated in the
Hamburg metropolitan region with more than 5 million in-
habitants, the city has the strongest centrality effect of any
major German city. Between 2012 and 2030, the number
of inhabitants is projected to rise by 5.4 per cent while the
number of households is predicted to grow by 6.7 per cent.
Overall, the City is expecting significant population growth
in the medium term, which is in part due to the large num-
ber of refugees likely to remain in Hamburg permanently.

109
CITY PROFILE n HAMBURG
Hamburg is also a young city. Almost a third of inhabit-
ants are below the age of 30 while less than a quarter are
older than 60. The number of employees subject to so-
cial security contributions rose by 21.9 per cent between
2004 and 2014, which is the fourth-highest increase of all
29 cities studied in this report, behind Leipzig, Berlin and
Freiburg. The unemployment rate is currently 7.6 per cent.
Hamburg’s economic structure is dominated by the service
sector, which employs approximately 84 per cent of em-
ployees subject to social security contributions. A variety
of innovative growth sectors can be found in the city. The
port and logistics, life sciences, aviation, media, and IT sec-
tors are particularly strong in Hamburg. However, renewa-
ble energy, the maritime industry, and trade with Asia and
particularly China, are also key pillars of the city’s econ-
omy. The musical city of Hamburg is also a tourist mag-
net among major German cities. In 2014, 6.1 million visitors
spent 12 million nights in the city’s 348 hotels.
A CENTRE OF KNOWLEDGE WITH EXCELLENT
INFRASTRUCTURE
Hamburg is situated at the intersection of key European
transport routes between Scandinavia and Western, East-
ern, and Southern Europe. The city is well connected glob-
ally via water, rail, road, and air. The six-lane extensions of
the A 1 and A 7 motorways and the new River Elbe cross-
ings to the east and west of Hamburg will further improve
the region’s nationwide connections. The port of Hamburg
is the largest sea port in Germany and the second largest
container port in Europe. To cope with the increasing num-
ber of tourist cruises visiting the city, Hamburg received a
third berth for large cruise ships in the Cruise Center Stein-
werder in June 2015. The terminal building offers sufficient
capacity to turn around more than 4,000 passengers at
a time. The nearby airport handled 14.76 million passen-
110
gers last year. Hamburg Airport will also be home to the
new Hamburg Airport Cargo Centre (HACC), scheduled
for completion by summer 2016, which will have an annual
capacity of 150,000 tonnes of air freight.
With 19 recognised universities under public and private
funding and additional higher education institutions in the
metropolitan region, Hamburg is the academic home to
some 85,000 students. Almost 12 per cent of students
come from abroad. The higher education institutions also
enjoy close collaboration with non-university research
institutions, such as the German Electron Synchrotron
(DESY), the largest research centre in the city, as well as
three Max-Planck institutes and a Leibniz institute. Ham-
burg is home to numerous innovations. It is little wonder,
therefore, that one of the four German local chambers of
the future European Patent Court is located in the city.
HOUSING POLICY INSTRUMENTS
From a property investor’s perspective, the security and
stability of the market are reasons to invest in Hamburg. In
a worldwide comparison in 2015, management consultants
PwC and the Urban Land Institute (ULI) Hamburg identi-
fied the city as the fourth-most attractive market for long-
term, equity-led investment in existing property in Europe
after Berlin, Dublin and Madrid. In the ranking for new in-
vestment, Hamburg even placed second after Dublin. The
largest landowners are the City of Hamburg and its public
companies. When disposing of public land, the City makes
consistent use of the instruments of conceptual tender-
ing and exclusive option periods. This means that, follow-
ing the decision of the selection process, the purchaser has
time to clarify the details necessary for the development
feasibility and financing of a project before completing the
sale contract. During this time, the City will not offer the
 CITY PROFILE n HAMBURG

DISTRIBUTION OF ASKING RENTS IN HAMBURG 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

14.5 14.6 29.5 29.5 24.5 25.6 17.2 17.6 8.6 8.7 5.7 4.0
40%

30%

20%

10%

0%

under €8.00 €8.00 to €9.99 €10.00 to €11.99 €12.00 to €13.99 €14.00 to €15.99 €16.00 and over

More than half of apartments advertised in Hamburg are priced at €10.00 and

above. In contrast with other major German cities, however, the proportion of
high-priced property listings decreased moderately in 2015.

land to any other interested parties. The objective of the
exclusive option period is to fundamentally simplify pro-
spective development projects and to create planning cer-
tainty for all parties.
The active market vacancy rate in the residential market
is just 0.7 per cent, which indicates that there is still sig-
nificant excess demand. The demand pressure originates
particularly from the districts north of the River Elbe. Con-
sequently, the City has set the objective in its housebuild-
ing programme of creating the conditions for 6,000 new
homes per year. At least 2,000 of these are to be subsi-
dised homes for households with low and middle incomes.
This was the subject of the “Vertrag für Hamburg – Woh­
n­ungs­neubau” (Contract for Hamburg – New-Build Hous-
ing) agreed with the districts of Hamburg in 2011 for more
and faster residential planning permissions. The City has
also entered into the “Bündnis für das Wohnen in Ham-

Key Figures for the housing market

Hamburg Federal State Hamburg Germany

Average asking rent 2015 in €/m²/month 10.23 10.23 6.51

Average size of apartments on offer 2015 in m² 65.0 65.0 68.0
Vacancy rate in apartment buildings 2014 in % 0.7 0.7 3.0
Newly finished apartments1) per 1,000 residents 2014 3.5 3.5 2.7
Of which are in apartment buildings 2)
2.9 2.9 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

111
CITY PROFILE n HAMBURG
burg” (Alliance for Living in Hamburg) along with the
housing industry associations and tenants’ associations.
Such co-operation in the city is beginning to bear fruit.
Almost 6,150 residential units were completed (in new
residential and non-residential buildings) in 2014 and
the 6,000 unit mark was also exceeded in 2013. If the
10,000 or so apartments approved in 2014 are completed,
then the positive trend will continue.
To facilitate housebuilding, the City also repealed its park-
ing space regulation relating to new-build property at the
start of 2014. The directive from the Senate that each de-
velopment project must comprise at least one third social
housing should also allow social housing to be built in pre-
ferred residential locations. To protect the social structure
in individual areas or districts, the City is also implement-
ing social preservation directives. The Mietpreisbremse
(capping of rents on re-letting) was introduced throughout
Hamburg for a period of five years on 1 July 2015. Since the
housing industry does not consider the residential mar-
ket to be strained in all areas of the city, a survey has been
commissioned to analyse rents in the individual districts.
Should the survey confirm the view of the housing industry,
the directive will be repealed in the corresponding districts.
112
HAMBURG IS A TENANTS’ CITY
According to the latest census, Hamburg’s housing stock
comprised a total of 905,381 residential units in 2011. The
majority of these, 721,110 units, were in apartment build-
ings. A total of approximately 75 per cent of housing in
Hamburg was occupied by tenants according to the census.
Around a quarter of buildings with residential accommo-
dation in Hamburg were built prior to 1949, while almost
48 per cent were built between 1949 and 1978. Just 7.5 per
cent of buildings have been built since 2001. The City com-
missioned an independent survey to establish demand
for city-centre residential locations. The survey identified
the sustained net migration over many years, particularly
in the 20 to 30-year-olds age group as the main source of
the demand pressure. While foreign immigrants in this age
group are distributed across the entire city, migrants from
other parts of Germany are concentrated in the city cen-
tre. Families, on the other hand, are predominantly found
in areas with adequate facilities in terms of kindergartens,
schools, open spaces and local amenities. However, infra-
structural connections are still an important element for
this group in order to ensure accessibility to their place of
work. The selective demand means that rents and property
prices are rising more sharply particularly in those areas
that are the focus of the high-income demand group with
urban preferences.
NEW DISTRICTS ARE EXTENDING THE CITY
Factory closures, military withdrawals, and the surrender
of infrastructural areas have provided Hamburg with an
abundance of large areas for which the City can develop
sustainable concepts. The largest urban development pro-
ject is HafenCity, which has expanded the current city cen-
tre by 40 per cent. By 2025, an area of 157 hectares will
be transformed into a vibrant urban quarter with maritime
flair, more than 6,000 apartments, over 45,000 jobs and
two universities. To retain the area’s relation to the water,
it has not been diked but rather safeguarded with artifi-
cial wharfs rising eight to nine metres above sea level. Fol-
lowing a few delays, the new symbol of Hamburg, the Elbe
Philharmonic Hall, is scheduled to be completed here with
its two concert halls, a five-star hotel, and around 45 apart-
ments by 2017. Besides HafenCity, the “Mitte Altona” area
is another to offer the most potential for sustainable ur-
ban development over a site totalling 75 hectares. The
former goods depot and surrounding land, which will be
vacated owing to the relocation of the mainline from the
current Altona station to Diebsteich is to be redeveloped
as a new mixed-use district with around 3,600 homes and
 CITY PROFILE n HAMBURG

eight hectares of green and open spaces. The International
Building Exhibition (IBA) and the urban development mas-
ter plan “Sprung über die Elbe” (Leap across the Elbe) have
opened up potential for the area south of the Elbe, com-
prising Veddel, Wilhelmsburg and the Harburg inland har-
bour, to transform themselves from a long forgotten dis-
trict to an area where people will happily live, work and
reside. Over the coming years, the City intends to return
its focus on urban development to the areas of Hammer-
brook, Borgfelde, Hamm, Horn, Rothenburgsort, Billbrook,
and Billstedt in the eastern part of Hamburg. The objec-
tive is to build an additional 15,000 to 20,000 homes and
to strengthen the area’s economic potential. In December
2014, the City of Hamburg joined forces with the housing
industry associations to form the “Bündnis der Quartiere”
(Districts Alliance), with the objective of developing and
strengthening these urban quarters in collaboration going
forward. The first two pilot quarters are Rothenburgsort
and Hamm to the south.
ASKING RENTS REMAIN STABLE
The average exclusive asking rent in Hamburg in
2015 stood at €10.23 per square metre, which was slightly
below the previous year’s level of €10.26 and the 2013 fig-
ure of €10.27. Three of the 35 urban district studied
showed a decline in the median asking rent of more than
2  per cent compared with the previous year while the cor-
responding figure in 14 other areas either rose or fell by
1.0 per cent. The largest differential compared with the
previous year was seen in the large residential area of
Mümmel­manns­berg [20] in the district of Billstedt in the
east of Hamburg. However, owing to the overall small sam-
ple size, this increase might not be considered significant.
Strong increases were also witnessed in the Allermöhe,
Kirchwerder, Ochsenwerder, Reitbrook, Neuengamme,
Alten­gamme, and Curslack [01] areas (+5.4 per cent), the
Neustadt [21] district (+5.0 per cent), which is apportioned
to the Altstadt, and Rissen [26] (+4.6 per cent), which lies
adjacent to Blankenese in the western outskirts. The high-
est median asking rents in 2015 were reported in the area
comprising HafenCity, Altstadt (West), and Speicherstadt
[13] with €15.75 per square metre, followed by the areas of
Rotherbaum (East) and Harvestehude (East) [27] around
the Außenalster with €14.50 per square metre. Asking
rents below €8.00 were registered only in Mümmelmanns-
berg and the area south of the Elbe comprising Finken-
werder, Neuenfelde, Seehof, Cranz, Neugraben-Fischbeck,
and Hausbruch [11], where the median asking rent stood
at €7.60 per square metre. There is a wide spread of ask-
ing rents across all city districts in Hamburg. The most ex-
pensive rents in the prime segment were registered in the
area comprising HafenCity, Altstadt (West), and Speicher­
stadt, with prime rents starting from €19.00 per square
metre, as well as in Rotherbaum (East) and Harvestehude
(East), where prime rents started at €18.50. Prime asking
rents of at least €14.00 were reported in 13 of the 35 of the
combined city areas studied. The average dwelling size of
properties listed ranges from 56 square metre in the area
comprising Dulsberg and Bramfeld [08] up to 103.1 square
metre in Rotherbaum (East) and Harvestehude (East). The
average dwelling size in the city was 65 square metre.

HAMBURG IS A COSMOPOLITAN, ECONOMICALLY STRONG AND GREEN CITY ON THE WATER

Hamburg is one of the most dynamic metropolises in the European Union and a magnet for many international
companies. Between 2012 and 2030, the number of inhabitants is projected to rise by 5.4 per cent while the number
of households is predicted to grow by 6.7 per cent. The European Green Capital of 2011 is pursuing its own ambi-
tious climate objectives. The city intends to reduce its CO2 emissions by 80 per cent by 2050. Hamburg’s economic
structure is dominated by the service sector, which employs more than 80 per cent of employees. Some 75 per cent
of apartments in Hamburg are occupied by tenants. The City’s objective to create the conditions for 6,000 new resi-
dential units per year has been achieved in recent years. However, there remains surplus demand, particularly in the
areas north of the River Elbe.

113
CITY PROFILE n HAMBURG

Asking Rents in Hamburg 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ] Allermöhe, Kirchwerder, Ochsenwerder, Reitbrook, Neuengamme, 441 73.7 8.65

Altengamme, Curslack
[ 02 ] Alsterdorf, Barmbek North 1,222 60.0 10.71
[ 03 ] Altona, Altona-Altstadt 647 60.0 12.50
[ 04 ] Altstadt (East), Klostertor, Borgfelde, Hamm, Eilbek 1,454 59.0 10.00
[ 05 ] Bahrenfeld, Altona North 610 65.0 11.65
[ 06 ] Bergedorf, Lohbrügge, Billwerder 664 64.5 9.23
[ 07 ] Billstedt, Horn, Billbrook, Moorfleet, Rothenburgsort, Veddel 1,157 57.0 8.94
[ 08 ] Dulsberg, Bramfeld 798 56.0 9.29
[ 09 ] Eidelstedt, Niendorf, Schnelsen 1,273 67.0 9.79
[ 10 ] Eppendorf, Winterhude 1,194 70.0 13.04
[ 11 ] Finkenwerder, Neuenfelde, Seehof, Cranz, Neugraben-Fischbek, 498 68.0 7.60
Hausbruch
[ 12 ] Fuhlsbüttel, Langenhorn (South), Hummelsbüttel, Poppenbüttel 1,061 69.1 9.57
[ 13 ] HafenCity, Altstadt (West), Speicherstadt 310 98.1 15.75
[ 14 ] Harburg, Moorburg, Rönneburg, Langenbek, Eißendorf, Heimfeld, 1,806 62.0 8.74
Marmstorf, Wilstorf
[ 15 ] Harvestehude (West), Rotherbaum (West), Sternschanze, 878 67.0 13.45
St. Pauli, Neustadt (South)
[ 16 ] Hoheluft-West, Eimsbüttel 1,073 60.0 12.50
[ 17 ] Hohenfelde, Barmbek South 1,140 59.0 11.40
[ 18 ] Iserbrook, Sülldorf 182 64.5 10.41
[ 19 ] Langenhorn (North) 221 66.0 8.94
Mümmelmannsberg
[ 20 ] 63 70.7 7.20
Neustadt
[ 21 ] 120 86.6 13.65
[ 22 ] Ohlsdorf, Wellingsbüttel 457 75.0 10.33
[ 23 ] Osdorf, Lurup 329 69.0 8.86
[ 24 ] Othmarschen, Groß Flottbek, Nienstedten, Blankenese 836 92.0 12.65
Ottensen
[ 25 ] 453 78.0 13.54
Rissen
[ 26 ] 227 61.0 9.67
[ 27 ] Rotherbaum (East), Harvestehude (East) 352 103.1 14.50
[ 28 ] St. Georg 235 84.6 13.00
[ 29 ] Stadtpark, Uhlenhorst 1,325 65.0 12.98
Steilshoop
[ 30 ] 246 65.0 8.73
[ 31 ] Stellingen, Groß Borstel, Lokstedt 1,300 65.0 11.04
[ 32 ] Tonndorf, Rahlstedt, Farmsen-Berne 2,043 67.0 8.89
[ 33 ] Volksdorf, Sasel, Bergstedt, Wohldorf-Ohlstedt, Duvenstedt, 631 76.0 9.70
Lemsahl-Mellingstedt
[ 34 ] Wandsbek, Marienthal, Jenfeld 990 64.0 9.85
Wilhelmsburg
[ 35 ] 414 60.0 8.16
Hamburg average 26,650 65.0 10.23

114
 CITY PROFILE n HAMBURG

aVeraGe asKinG renTs in CiTY areas 2015

19 33

12

09 22

30 32
02 08
31
10
26 23
29
18
16 17 34
27
05 15
28
24 21
25 03 04

13 07 20

11 35 06

14 01

Median in €/m²/month

7.20 – 8.73 8.74 – 8.94 8.95 – 9.65 9.66 – 10.00 10.01 – 11.13 11.14 – 12.58 12.59 – 13.35 13.36 – 15.75

115
CITY PROFILE n H A N OV E R

Hanover: The green trade fair city

Besides its exhibition centre, the city on the banks of the River Leine boasts a wide science and
research landscape including internationally renowned institutes. Despite the dynamic growth in
the housing market, rents in the city of 523,642 inhabitants are relatively modest.

The capital of Lower Saxony is the core city of a region in-
habited by a total of almost 1.13 million people as at the
end of 2014. In 2014, the city celebrated the 300th anni-
versary of the Personal Union. In October 1714, the Elec-
tor of Hanover became George I by ascending the British
throne in London. This was followed by 123 years of joint
rule of the Electorate of Hanover and the Kingdom of Great
Britain by a common monarch, resulting in a range of po-
litical influences and exchange. Restraint, a penchant for
understatement and a policy of small steps may all have
contributed to the cliché of Hanover as a “boring” city.
Hanover is a quiet achiever. Its strengths and potential only
become clear at second glance. In addition to the universi-
ties, with more than 40,000 students, and related research
institutions, the 34 non-university and private research
institutes as well as company research departments also
play an important role. The city is particularly well repre-
sented in the fields of medicine and engineering. Thanks
to the extensive science and research infrastructure, local
companies benefit from numerous opportunities for co-op-
eration when it comes to both research and development
and the education and training of qualified professionals.
TRADE FAIR CITY WITH A ROBUST ECONOMY
Hanover is a leading international trade fair city. The exhi-
bition centre with some 470,000 square metre of covered
exhibition space is the largest in the world. Leading trade
fairs include CeBIT, the Hannover Messe and Agritechnica.
The economic structure in Hanover is dominated by the au-
tomotive industry, energy, information and communication
technology, healthcare, creative industries, and manufac-
turing technology. The logistics industry, financial services
and information services as well as the trades all contrib-
ute significantly to the labour market. Operations of Hano-
ver’s 23,000 companies are roughly divided into 75 per
cent commerce and services and 25 per cent industry and
manufacturing. Global companies such as Volkswagen
Commercial Vehicles, Wabco, Continental, TUI and Bahl-

116
 CITY PROFILE n H A N OV E R

Hanover is one of Germany’s greenest major cities. Over 13 per cent of its area
is dedicated to green spaces; 12 per cent is woodland and forest. Farming and horti-
culture take up around 16 per cent, while water makes up 3.5 per cent.

sen are located here, as are broad-based technology-ori- ver in 2014, which represented a 2.6 per cent increase on
ented SMEs (small and medium-sized enterprises). A key the previous year. However, the rather high unemploy-
indicator of economic growth and prosperity in a region ment rate of 10.2 per cent (2014), attributable to structural
is growth in employment. From 2004 to 2014, the num- changes in previous years, is only falling at a modest rate.
ber of employees subject to social security contributions
increased by 12.9 per cent. More than 300,000 employees
subject to social security contributions worked in Hano-

117
CITY PROFILE n H A N OV E R
GREEN CITY, AMBITIOUS CLIMATE OBJECTIVES
Almost 50 per cent of the total area of Hanover is made
up of green and open spaces. The city forest of Eilenriede,
the Maschsee lake and the rivers Leine and Ihme are other
elements that enhance the city setting. Since 2011, Hano-
ver has been the “Federal Capital of Biodiversity”. The
City and region have jointly set a goal to create an almost
carbon-neutral region by 2050 under the auspices of the
“Master plan – 100 per cent for climate protection”. When
it comes to urban development, Hanover is also aiming for
sustainability. New developments preferably take place on
gap sites and brownfield sites. Drafting of the urban de-
velopment concept “Mein Hannover 2030” (My Hanover
2030) commenced in mid-2015. The city council will be-
gin consultation on the draft concept in spring 2016. One
of the largest residential district developments in the com-
ing years will be Wasserstadt Limmer. Up to 1,800 homes
could be constructed on the 230,000 square metre site
of the former Continental plant on the banks of the River
Leine. The plans are currently under revision as part of
the “Wohnkonzept 2025” (Living Concept 2025) initiative
with citizen participation. The site of the former Oststadt-
krankenhaus hospital in Groß-Buchholz is to be re-devel-
oped with around 400 residential units, while the super-
fluous expansion area at the Annastift facility in Mittelfeld
will be transformed into the new “Vitalquartier” district
with around 370 apartments from the end of 2016. On
the former Telekom site in Kleefeld, almost 220 residen-
tial units will be developed by mid-2018. Otherwise, urban
development is focused on fragmented central areas with
mixed uses such as the Klagesmarkt, Hohn Ufer, Marstall
and Köbelinger Markt areas.
118
GROWING DEMAND FOR MODERN HOUSING
According to the 2011 census, the housing stock in
Hanover comprised 65,652 residential buildings with
282,007 residential units, of which 73 per cent were rental
apartments. More than half of the housing stock was con-
structed during the post-war period between 1949 and
1978. Around 86 per cent of housing has three or more
rooms. Studios are rare, comprising only around 6 per cent
of the market. The housing market in Hanover has been
regarded as rather quiet for many years. However, since
the end of 2005, Hanover’s population has grown continu-
ously. From 2012 to the end of 2014 alone, the number of
inhabitants increased by 2.8 per cent. Population growth
of 3.7 per cent is projected for the period from 2014 to
2030. This trend has not been matched by a correspond-
ing volume of new build. An average of only 350 or so
residential units were completed between 2008 and 2011.
New-build housing construction only gathered pace again
from 2012 with around 880 new units (in new residential
and non-residential buildings excluding residential homes)
during the year and almost 640 additional new units in
2013. The active market vacancy decreased from 2.6 to
2.0 per cent between 2009 and 2014. This has resulted in
increasingly scarce supply and rising rents in the housing
market. An additional challenge for the city at present is
the accommodation of refugees.
The median exclusive asking rent in Hanover was just
€6.58 per square metre in 2012, rising to €7.50 in 2015,
which is in the mid-range of the 29 cities analysed for the
purposes of this report. “Wohnkonzept 2025” was for-
mulated to counteract price growth in the city of Hano-
ver. The City intends to add approximately 8,000 addi-
tional residential units by the year 2025. Furthermore,
the development of existing stock is also on the City’s
 CITY PROFILE n H A N OV E R

DISTRIBUTION OF ASKING RENTS IN HANOVER 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

2.2 1.7 26.1 19.3 40.6 40.2 18.8 23.1 7.0 8.8 5.1 6.9
50%

40%

30%

20%

10%

0%

under €5.00 €5.00 to €6.49 €6.50 to €7.99 €8.00 to €9.49 €9.50 to €10.99 €11.00 and over

Asking rents in Hanover are of a moderate level. Some 61 per cent of residential
lettings in 2015 were priced below €8.00 per square metre. However, the proportion
of higher-priced listing is on the increase.

agenda. Within the scope of a wide-reaching urban re-
newal process, the housing stock is to be modernised and
the available inventory of affordable housing maintained
and extended. Parts of the Hainholz, Sahlkamp-Mitte and
Stöcken districts are currently being upgraded as part of
the “Soziale Stadt” (Social City) programme, while the
“Stadtumbau West” (Urban Renewal West) programme is
improving the areas of Central Ihme, Limmer-East, Was-
serstadt, and Vinnhorst-Mitte.
The Oststadt and Südstadt, List, Linden, Zooviertel, and
Kirchrode areas of Hanover are in high demand. The most
expensive median exclusive asking rents of €9.99 per
square metre were found in the Zoo [14] district. The
trendy, inner-city district adjacent to the zoo, city park
and city forest of Eilenriede was the site of President Paul
von Hindenburg’s retirement. Former Chancellor Gerhard
Schröder also lived here with his family for some time.
Asking rents of at least €8.00 were found in the Mitte,

Key Figures for the housing market

Hanover Lower Saxony Germany

Average asking rent 2015 in €/m²/month 7.50 6.00 6.51

Average size of apartments on offer 2015 in m² 65.2 70.0 68.0
Vacancy rate in apartment buildings 2014 in % 2.0 3.4 3.0
Newly finished apartments1) per 1,000 residents 2014 1.9 3.0 2.7
Of which are in apartment buildings 2)
1.4 1.1 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

119
CITY PROFILE n H A N OV E R

Asking Rents in Hanover 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ] Ahlem, Badenstedt, Davenstedt, Limmer 302 60.0 6.67

[ 02 ] Bemerode, Wülferode, Döhren-Wülfel 387 67.0 7.75
[ 03 ] Herrenhausen-Stöcken, Vinnhorst, Hainholz, Vahrenwald 598 60.6 6.94
[ 04 ] Isernhagen, Vahrenheide, Bothfeld 230 68.0 6.69
[ 05 ] Kirchrode, Anderten 217 73.0 7.92
[ 06 ] Kleefeld, Heideviertel, Groß-Buchholz 469 65.8 7.51
[ 07 ]
Lahe 84 66.0 7.72
[ 08 ] Linden North, Linden South 272 65.0 7.44
[ 09 ]
List 442 70.0 8.00
[ 10 ] Misburg, Buchholz-Kleefeld 208 65.2 7.20
[ 11 ] Mitte, Oststadt, Nordstadt 695 65.0 8.14
[ 12 ] Ricklingen, Wettbergen, Mühlenberg 377 65.0 6.74
[ 13 ] Südstadt, Bult, Maschsee, Calenberger Neustadt 546 72.5 8.10
[ 14 ]
Zoo 135 80.0 9.99
Hanover average 4,962 65.2 7.50

Oststadt, and Nordstadt [11] areas (€8.14), as well as in

Südstadt, Bult, Maschsee, and Calenberger Neustadt [13]
(€8.10) and List [09] (€8.00). The lowest median exclu-
sive asking rents of €6.67 per square metre were seen
in the western outskirts in the area comprising Ahlem,
Badenstedt, Davenstedt, and Limmer [01]. Only margin-
ally more expensive at €6.69 was the area in the northern
outskirts comprising Isernhagen, Vahrenheide, and Both-
feld [04]. The median asking rent remained stable in the
area comprising Kleefeld, Heideviertel, and Groß-Buch-
holz [06] (+0.7 per cent), while rents in 12 out of 14 areas
rose by more than 3 per cent.

THE TRADE FAIR, SCIENCE AND RESEARCH CITY HAS GREAT POTENTIAL

Hanover is a leading international trade fair city with a wide research and scientific landscape. The eastward
expansion of the European Union has moved Hanover closer to the centre of Europe. Almost 50 per cent of the
total area of Hanover is made up of green and open spaces. By 2050, the City and region aim to become almost
climate-neutral. The positive population growth and limited new construction activity in the housing market are
resulting in shorter supply and rising rents, although these are not above average among the 29 cities studied.
The “Wohnkonzept 2025” initiative and “Mein Hannover 2030” urban development concept have been formulated
to shape Hanover’s future development.

120
 CITY PROFILE n H A N OV E R

aVeraGe asKinG renTs in CiTY areas 2015

04 07

03

09 10

11 06
14

01 08 05
13

12 02

Median in €/m²/month

6.67 – 6.72 6.73 – 7.00 7.01 – 7.41 7.42 – 7.62 7.63 – 7.77 7.78 – 7.98 7.99 – 8.12 8.13 – 9.99

121
CITY PROFILE n KARLSRUHE

Karlsruhe: The technology hotspot

The second largest city in Baden-Württemberg is one of the leading technology locations in
Germany. The two highest German courts, the Federal Constitutional Court and the Federal Court,
are based in the city. Demand for urban residential property is high.

Innovation and entrepreneurship have a long tradition
in the fan-shaped city of Karlsruhe. In 1715, Karl Wil-
helm, Margrave of Baden-Durlach, designed Karlsruhe
on the drawing board as a model city with the palace at
its centre of a “fan” consisting of 32 radial roads. Thanks
to policies of freedom of trade, tax relief, and freedom of
religion, the resourceful sovereign successfully attracted
new residents from across Europe. Karlsruhe attained
city status as early as 1901 with 100,000 inhabitants. The
scientific spirit inspired other scientists of Karlsruhe to
create inventions that changed the world. Baron Drais
von Sauerbronn, known as “the Mad Baron”, invented the
trolley, implementing the two-wheel principle for the first
time; Heinrich Hertz discovered electromagnetic waves,
the basis of current information technology, and the Uni-
versity of Karlsruhe received the first e-mail in 1984, thus
bridging the way to the Internet. Karlsruhe is not only an
excellent research location, but also offers a good quality
of life. This is thanks to the proximity to the Black Forest,
Alsace and the Palatinate as much as the mild climate,
vast green spaces and rich cultural life.
THINK TANK WITH A PRACTICAL APPROACH
Karlsruhe’s central location in Europe is a competitive
advantage for the city. The connection to the ICE main
lines and the TGV, the Karlsruhe/Baden-Baden Airport,
as well as an extensive public transport network, all con-
tribute to the city’s excellent overall infrastructure. Al-
most 100,000 people commute into the city from the
surrounding area every day. As part of a comprehensive

122
 CITY PROFILE n KARLSRUHE

Karlsruhe, in the federal state of Baden-Württemberg, is the largest location for

crude oil processing in Germany. One in five litres of petrol produced in Germany
comes from Karlsruhe.

urban development project the “Kombilösung” (combined
solution) in the city centre, by 2018/2019 a rail tunnel
will be constructed beneath the pedestrian zone in Kai-
serstraße along with a landscaped tram route crossing a
road tunnel in Kriegsstraße. This will not only optimise
public transport links but will convert the main shopping
street, Kaiserstraße, into a pure pedestrian zone. With
the university, the Karlsruhe Institute of Technology (KIT),
a wide range of colleges of higher education, research
institutions and numerous outstanding high-tech enter-
prises, the city has a high density of innovation centres.
Networks provide a stimulating climate for start-ups and
efficient technology transfer. More than 40,000 stu-
dents were enrolled in the city in the winter semester of

123
CITY PROFILE n KARLSRUHE
2014/2015. One of the main research areas is nanotech-
nology, particularly at the Karlsruhe Institute of Technol-
ogy (KIT), the DFG Centre for Functional Nanostructures
(CFN), and the Institute for Nanotechnology at the Uni-
versity of Strasbourg. The Fraunhofer-Gesellschaft and
Leibniz Association are also represented with research
institutes in the city. The economy of Karlsruhe benefits
greatly from its proximity to research institutions thanks
to intensive knowledge and technology transfers and the
availability of highly skilled professionals. The strongest
employment sectors include healthcare, retail, educa-
tion, and information technology services. An unemploy-
ment rate of only 5.5 per cent, continuously improving
employment figures (the number of employees subject
to social security contributions rose by 17.7 per cent from
2004 to 2014) and the per capita purchasing power of
€22,738 demonstrate that Karlsruhe is a prospering loca-
tion. Global players such as Siemens, Bosch, and Michelin
co-exist with high-performing SMEs (small and medium-
sized enterprises).
REQUIRED NEW-BUILD QUOTA NOT MET
Thanks to the city’s attractiveness, the population of
Karlsruhe grew by 2.8 per cent between the end of
2011 and the end of 2014, reaching 300,051 inhabitants.
The number of households currently stands at almost
175,500, almost 54 per cent of which are single-person
households, which is among the highest proportions in
the cities studied in this report. Projections for the period
from 2012 to 2030 assume a growth rate in the num-
ber of households of 3.5 per cent. The age structure is
strongly characterised by a high number of young adults
of student age between 20 and 29. However, the propor-
tion of senior citizens aged 65 and older has risen consist-
ently in recent years while the number of young persons
124
below the age of 18 has fallen over the last 10 years. The
2011 census indicates a total of 42,044 buildings with
residential space and 151,648 homes in Karlsruhe. Some
14.5 per cent of these buildings were constructed prior to
1919 and an equal proportion was built between 1919 and
1948. A further 43.0 per cent of the buildings were con-
structed between 1949 and 1978. Despite brisk construc-
tion activity in the subsequent years, this volume has
not been reached since. Only 8.9 per cent of buildings
were constructed between 1979 and 1986, and a further
12.2 per cent were built between 1987 and 2000. Only
slightly more than one per cent of all buildings were com-
pleted between 2009 and 2011. The number of housing
completions (in residential and non-residential buildings
including residential homes) stood at almost 740 new
units in 2014. More than half of the new residential
units completed were new-build apartments in apart-
ment buildings. For years, total construction activity for
Karlsruhe has remained below the new rate of around
1,000 homes per year required to maintain a balanced
housing market. This volume was last approximately
reached in 2000 with around 960 home completions. The
active market vacancy rate in apartment buildings in the
city now stands at a mere 0.9 per cent (2014).
 CITY PROFILE n KARLSRUHE

DISTRIBUTION OF ASKING RENTS IN KARLSRUHE 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

0.5 0.7 8.7 8.3 44.3 41.3 34.1 34.8 8.9 11.6 3.5 3.3
50%

40%

30%

20%

10%

0%

under €5.00 €5.00 to €6.99 €7.00 to €8.99 €9.00 to €10.99 €11.00 to €12.99 €13.00 and over

Karlsruhe is among the more expensive cities in this report. More than three
quarters of asking rents in 2015 ranged between €7.00 and €10.99 per square metre,
while only 9.0 per cent were below €7.00.

HOUSING SHORTAGE DRIVES INCREASE IN RENT
The “return to the city” trend is causing very high de-
mand for urban residential accommodation in Karlsruhe.
This quantitative and qualitative trend, which has been
in evidence for some 10 years, had thus far been partly
absorbed by the large conversion areas of Südstadt East,
Kirchfeld North (Neureut) and Knielingen 2.0 as well
as via the zoning of new development areas. In its 2015
status report, “Living and Building in Karlsruhe”, the city
concluded that a total of 20,700 new apartments have
to be built by 2030 in order to create a balanced hous-
ing market. However, current residential development
sites only allow for 12,500 apartments. The city is there-
fore anticipating further increases in rental and purchase
price levels until 2030. The Mietpreisbremse (capping
of rents on re-letting) was introduced for new lettings
of existing apartments in Karlsruhe on 1 November. The
districts of Mühlburg, Alter Schlachthof, Rintheimer Feld,

Key Figures for the housing market

Karlsruhe Baden-Württemberg Germany

Average asking rent 2015 in €/m²/month 8.97 7.82 6.51

Average size of apartments on offer 2015 in m² 72.0 75.0 68.0
Vacancy rate in apartment buildings 2014 in % 0.9 1.8 3.0
Newly finished apartments1) per 1,000 residents 2014 2.4 3.1 2.7
Of which are in apartment buildings 2)
1.6 1.6 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

125
CITY PROFILE n KARLSRUHE

Asking Rents in Karlsruhe 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ] Beiertheim-Bulach, Südwest-Stadt 164 78.0 9.42

[ 02 ] Daxlanden, Mühlburg, Oberreut, Alte Heidenstückersiedlung 59 70.0 8.44
[ 03 ]
Durlach 188 70.0 8.80
[ 04 ]
Grötzingen 41 75.6 8.00
[ 05 ] Grünwettersbach, Palmbach, Stupferich, Wolfartsweier, 86 79.0 7.93
Hohenwettersbach
[ 06 ] Hagsfeld, Rintheim 96 69.3 8.57
[ 07 ]
Knielingen 105 80.0 8.67
[ 08 ] Neureut, City North 112 63.0 8.96
[ 09 ] City Northwest, Grünwinkel 199 70.0 8.75
[ 10 ] City East, Waldstadt, City Centre 182 65.5 9.13
[ 11 ]
Südstadt 299 75.0 9.41
[ 12 ] Weiherfeld-Dammerstock, Rüppurr 72 81.0 8.82
[ 13 ] Weststadt, City Centre 232 75.0 9.45
Karlsruhe average 1,835 72.0 8.97

and Durlach Aue were designated as redevelopment
areas in Karlsruhe in 2015.
The median exclusive asking rent for the city as a whole
increased from €8.85 in 2014 to €8.97 per square me-
tre in 2015. The highest median exclusive asking rent of
€9.45 per square metre was found in the Weststadt and
city centre [13] areas. This can be attributed to the trend
towards urbanisation and particularly the low supply.
Similarly high median asking rents are found in the area
comprising Beiertheim-Bulach, and Südwest-Stadt [01]
(€9.42) as well as Südstadt [11] (€9.41). Both districts
have a high proportion of Wilhelminian-era buildings,
urban charm and green spaces. Südstadt also in-
cludes the “City Park” development area where around
2,800 new apartments have been completed in re-
cent years. The least expensive median asking rent of
€7.93 was found in the area comprising Grünwettersbach,
Palmbach, Stupferich, Wolfartsweier, and Hohenwet-
tersbach [05] on the south-eastern periphery of the city,
which consists of various districts with small-scale devel-
opment. However, the supply here was also very scarce
with fewer than 100 apartments.

A PROSPERING LOCATION WITH STRONG ECONOMIC AND RESEARCH PROSPECTS

Karlsruhe, with its 300,051 inhabitants,is the second-largest city in Baden-Württemberg. Formerly a royal seat
and city of government officials, Karlsruhe has transformed into a technology hotspot. The city’s central loca-
tion in Europe, strong economy and high density of innovation centres are key factors in its competitiveness, as
are the mild climate, vast green spaces and rich cultural life. The economy of Karlsruhe benefits greatly from its
proximity to research institutions thanks to intensive knowledge and technology transfers and the availability
of highly skilled professionals. For years, construction activity has remained well below the new rate of around
1,000 homes per year required to maintain a balanced housing market, despite a growing population. Conse-
quently, rents are on the rise, particularly in the city centre and surrounding areas.

126
 CITY PROFILE n KARLSRUHE

aVeraGe asKinG renTs in CiTY areas 2015

07 08

06 04

10
13
09

02 11 03
01

12

05

Median in €/m²/month

7.93 – 8.22 8.23 – 8.57 8.58 – 8.71 8.72 – 8.80 8.81 – 8.89 8.90 – 9.13 9.14 – 9.41 9.42 – 9.45

127
CITY PROFILE n KIEL

Kiel: Service industry and population

growing – the housing market is following
The state capital of Schleswig-Holstein offers some attractive locations near the Förde, Landtag, uni-
versity and city centre, which are increasingly favoured by employees of local high-growth industries.
On the outskirts, however, the recovery has been sluggish.

Kiel, once dominated by shipyards and mechanical and end of 2014, the number of inhabitants rose by 2.3 per
electrical engineering, has successfully navigated a period cent, which was ahead of the German average (1.1 per
of structural change. The total workforce of the manufac- cent). Natural population growth in Kiel has been negative
turing sector has more than halved in 20 years. However, in recent years, meaning that the increase is exclusively
this loss has been more than offset by the growth of the attributable to positive net migration. Thanks to the Uni-
service industry. Sectors in the city with strong growth po- versity of Kiel, the group of 18 to 29-year-olds is particu-
tential include marine and environmental technology, the larly strongly represented in the city. This age group ac-
healthcare industry/medical technology, and the informa- counts for 21.3 per cent of the population in Kiel, which is
tion, communication and biotechnology industries as well significantly above the national average of 14.0 per cent.
as multimedia and shipyard technology. The low point in
the number employees subject to social security contri-
butions and the peak of unemployment occurred in 2005.
Since then, the unemployment rate in Kiel has fallen by
around a third and is now at its lowest in 22 years by sea-
sonal comparison at 10.1 per cent.
The population bottomed out in 2000 and has since in-
creased by more than 13,000. From the end of 2011 to the

128
 CITY PROFILE n KIEL

The City of Kiel is a major location for the cruise ship industry. The number
of cruise passengers visiting the city has risen eightfold from 44,000 in 1994 to
354,000 in 2014.

LIVING BETWEEN POLITICS AND SCIENCE
The improved employment situation and growing popu-
lation have also revived the housing market. The median
asking rent per square metre increased by 6.2 per cent
since 2012, breaching the €7.00 mark by three cents, but
stagnated in 2015. The vacancy rate decreased by more
than a quarter between 2009 and 2014 and now stands at
1.7 per cent. Since the economic and budgetary forecasts
remain positive, further growth in rental levels is expected
for Kiel, especially in good locations, since the potential for
new-build is limited owing to the already dense develop-
ment and demand is focused on existing properties.

129
CITY PROFILE n KIEL
The area comprising Ravensberg, Brunswik, Düsternbrook,
and Blücherplatz [07] stands out in a number of ways. It is
located north of the centre and is home to the state parlia-
ment and most government ministries, the university and
numerous private service companies. The most prestig-
ious residential areas of the city are located between the
Förde and the University district, flanked by more attrac-
tive urban neighbourhoods to the west. The median ask-
ing rent per square metre stands at exactly €8.00. The
prime segment is particularly pronounced. Asking rents
for the most expensive decile of apartments were at least
€10.33 per square metre in 2015. The most affordable
decile in this area is advertised at up to €6.61, meaning
that students are having increasing difficulties paying for
rents around the university.
POPULAR CITY, COVETED GREEN SPACES
The city centre with its Altstadt (Old Town) district and
peripheral Vorstadt areas, along with Exerzierplatz and
Damperhof [01], ranks second in terms of asking rents.
These comprise Kiel’s most urban and densely built-up
districts, which are also home to or are adjacent to some
open spaces such as Hiroshimapark, Schrevenpark, and
the banks of the Kieler Förde (Kiel Fjord) – although parts
of this are not accessible. The median asking rent in the
city centre rose by 2.1 per cent in 2015 to €7.73, which was
a relatively brisk increase by Kiel standards. In the more
attractive locations, there is quite a pronounced prime
segment. The area to the west and south of the city cen-
tre including Schreventeich and Südfriedhof [10] ranks in
third place. The median asking rent stands at €7.50 per
square metre, driven largely by the relatively central loca-
tion. Development here is characterised by long stretches
of sometimes rather narrow blocks of historical buildings.
The area is also intersected by five arterial roads. On the
130
other hand, there are many green spaces, especially in ex-
tensive small garden areas and in the Schrevenpark. The
top segment of the market is concentrated in these ar-
eas and the most expensive decile shows asking rents of
€9.47 per square metre or higher. The median asking rent
across overall market in the area stagnated in 2015, as did
the figure for the entire city.
Wik [12], in fourth place, is the highest-ranked area with
suburban character. There is an attractive area between
Düsternbrook and Ravensberg, the Kiel Canal and the
Kieler Förde, even though large areas near the waterfront
are used for commercial and military purposes. The ma-
jority of apartment buildings in this district were built af-
ter the war, featuring the advantages and disadvantages
typical for buildings of this era. On the one hand, leafy and
open spaces with plenty of daylight between the rows of
buildings. On the other hand, limited urban qualities and
larger, noisy roads. However, the majority of the post-war
building stock has now been modernised, resulting in a
median asking rent of €7.33.
SPRAWLING SUBURBAN DISTRICTS
The median asking rent in the sprawling southwestern
outskirts of Russee, Hassee, and Gaarden-Süd [08] is
€0.19 below this figure. There is a significant high spread
between the lower and upper segments here. The least
expensive decile of apartments is advertised at up to
€5.57 per square metre, including areas adjacent to the
busy commercial streets in central Hassee. Asking rents
in the most expensive decile start from €9.00. Due to the
predominantly small-scale development, the market in the
rural districts of Meimersdorf, Moorsee, Rönne, and Well-
see [05] is straightforward. Landlords can find tenants at
a median asking rent of €7.06 per square metre thanks to
the many idyllic, quiet areas and generous green spaces.
 CITY PROFILE n KIEL

DISTRIBUTION OF ASKING RENTS IN KIEL 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

4.4 3.3 29.9 30.4 37.8 38.3 18.5 18.9 6.4 6.5 3.1 2.6
40%

30%

20%

10%

0%

under €5.00 €5.00 to €6.49 €6.50 to €7.99 €8.00 to €9.49 €9.50 to €10.99 €11.00 and over

The general stability of asking rents across the city as a whole is also reflected
in the distribution of rents. The proportions in the individual segments remained
almost constant in 2015 compared with the previous year.

All of the afore-mentioned areas are above the city-wide
median asking rent of €7.03, while prices in the following
districts are lower.
The first district with a below-median asking rent for Kiel
is a very small submarket on the outskirts. Elmschenha-
gen [03], to the southeast, has a median asking rent of
€6.82 and is characterised by numerous housing estates
as well as the Krooger Kamp high-rise area. This is fol-
lowed by the area comprising Schilksee, Holtenau, and
Friedrichsort, which extends along a stretch of more than
five kilometres along the outer Kieler Förde. While the
setting is primarily leafy, it is remote from the city cen-
tre and the predominant post-war development does not
meet contemporary demands for urban living and infra-
structure. Furthermore, certain parts along the Förde are
heavily built-up while Kiel Airport is in the centre of the
area. The median asking rent here stands at €6.64 per
square metre.

Key Figures for the housing market

Kiel Schleswig-Holstein Germany

Average asking rent 2015 in €/m²/month 7.03 6.72 6.51

Average size of apartments on offer 2015 in m² 57.0 65.0 68.0
Vacancy rate in apartment buildings 2014 in % 1.7 2.7 3.0
Newly finished apartments1) per 1,000 residents 2014 1.0 3.5 2.7
Of which are in apartment buildings 2)
0.5 1.3 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

131
CITY PROFILE n KIEL

Asking Rents in kiel 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ] Altstadt, Vorstadt, Exerzierplatz, Damperhof 389 59.0 7.73

[ 02 ] Ellerbek, Wellingdorf, Neumühlen-Dietrichsdorf 396 52.0 6.08
[ 03 ]
Elmschenhagen 145 57.0 6.82
[ 04 ]
Gaarden-Ost 606 53.6 5.95
[ 05 ] Meimersdorf, Moorsee, Rönne, Wellsee 92 72.1 7.06
[ 06 ] Mettenhof, Hasseldieksdamm 214 69.9 5.82
[ 07 ] Ravensberg, Brunswik, Düsternbrook, Blücherplatz 743 60.0 8.00
[ 08 ] Russee, Hassee, Gaarden-Süd 443 60.0 7.14
[ 09 ] Schilksee, Holtenau, Friedrichsort 392 59.8 6.64
[ 10 ] Schreventeich, Südfriedhof 992 50.0 7.50
[ 11 ]
Suchsdorf 78 66.5 6.05
[ 12 ]
Wik 377 64.0 7.33
Kiel average 4,867 57.0 7.03

LOWEST RENTS IN GAARDEN-ost AND METTENHOF
The next area in the rankings is located on the eastern side
of the Förde across from the city centre. Ellerbek, Welling-
dorf, and Neumühlen-Dietrichsdorf [02] are primar-
ily residential areas built partially pre-war but predomi-
nantly post-war and are separated from the water by a port
and industrial zone. The median asking rent of €6.08 per
square metre is spread along a relatively wide band, with
housing in idyllic locations at the upper end, and locations
close to businesses and major roads at the more afforda-
ble end. Suchsdorf [11] to the far northwest is the smallest
submarket in Kiel with fewer than 100 listings at an aver-
age of €6.05 per square metre, mainly in buildings con-
structed in the post-war period up to the 1980s.
Gaarden-Ost [04] is a densely developed and vibrant area
located close to the city centre. It suffers from high un-
employment, social problems and some rather unattrac-
tive post-war buildings. The latter affects the area’s im-
age throughout the city, pushing the median asking rent to
€5.95 per square metre. Prices in the most affordable area
of Kiel comprising Mettenhof and Hasseldieksdamm [06]
are a further €0.13 lower. Hasseldieksdamm is an incon-
spicuous green suburban area while Mettenhof is the larg-
est satellite town of Kiel, built around 1970 in the far west
of the city. Social-housing has been concentrated into
high-rise buildings.

STRONG MARKET ACTIVITY AND A GROWING GAP

The state capital Kiel has overcome structural change and, accordingly, has witnessed positive trends in economic
and population growth in recent times. Nevertheless, the city is among the weaker of the 29 cities in terms of
demographic projections. The demand for higher-quality accommodation in attractive locations has increased
significantly in Kiel, and is likely to remain high. The main beneficiaries are well-kept locations in the vicinity of
the city centre. The gap between the sought-after western and modest eastern side of the Kieler Förde is set to
increase further. The districts with the lowest asking rents are inhabited by social groups suffering the effects of
the disappearance of traditional industry, which have hitherto largely been excluded from the benefits of the up-
turn in the services industries.

132
 CITY PROFILE n KIEL

aVeraGe asKinG renTs in CiTY areas 2015

09

Kiel Fjord

12
11

07

01 02
06 10

04

08
03

05

Median in €/m²/month

5.82 – 5.98 5.99 – 6.07 6.08 – 6.66 6.67 – 6.94 6.95 – 7.13 7.14 – 7.37 7.38 – 7.64 7.65 – 8.00

133
CITY PROFILE n L E I PZ I G
Leipzig: A traditional city of commerce
and culture popular with investors
The most populous city in Saxony has attracted large companies in the logistics and automotive
sectors since the year 2000. The population and economy are growing at above-average rates,
resulting in positive trends in the Leipzig residential market.
Leipzig celebrated a special year in 2015. The city was first
documented exactly 1,000 years ago. The anniversary of
this event was marked by a series of events and festivals
throughout 2015. After receiving its official city charter
in 1165 and being elevated to the status of trade fair city
of the empire in 1497, Leipzig developed into a European
trade fair city and is now a traditional location for trade
fairs. Besides this role, the city also has a long history as a
city of culture. The city’s great musical tradition is primar-
ily attributable to the works of Johann Sebastian Bach and
Felix Mendelssohn Bartholdy as well as the significance of
the Gewandhaus Orchestra and St Thomas’ Boys Choir. In
literature, Goethe gave the city a literary memorial with the
scene Auerbach’s Cellar in his work ‘Faust’. The city is also
one of the historic centres of letterpress printing and book
selling and was the main hub and transshipment point of
the German book industry during the 19th century.
134
SUCCESSFUL INVESTMENT STRATEGY
The Leipzig University can look back on a long tradition
dating back to 1409. The university currently has around
28,000 registered students. Almost 9,500 additional stu-
dents attend six other universities in the city. The growth
in student numbers, which have almost tripled within
10 years, is highly positive. Leipzig is among the most at-
tractive university cities in the eastern German federal
states. This positive trend is also reflected in overall de-
mographic growth. Between the end of 2011 and the end of
2014 alone, the population rose by 6.8 per cent to become
the largest of any urban municipality (kreisfreie Stadt) in
Germany. This is attributable to positive net migration,
which has totalled more than 9,000 persons per year since
2011. In addition, the city’s birth rate exceeded its death
rate for the first time in many years in 2014 by 400 people.
In terms of purchasing power per capita, Leipzig ranks third
 CITY PROFILE n L E I PZ I G

Leipzig, in the federal state of Saxony, is a major freight hub in Germany and
has enjoyed rapid growth in recent years. Freight and mail volumes rose 30-fold
between 2006 and 2014.

from the bottom among the 29 cities researched. However,
both economic growth and population growth are showing
strong uptrends. The unemployment rate in 2014 stood at
10.2 per cent, representing a decrease of more than 10 per-
centage points compared with 2005. The number of em-
ployees subject to social security contributions increased
by 28.2 per cent from 2004 to 2014; the highest growth
among all cities studied ahead of Berlin (24.6 per cent).
The Financial Times even identified Leipzig as a top invest-
ment location due to its rate of development. Leipzig’s suc-
cessful inward investment strategy was particularly rec-
ognised in comparison with other European cities, having
attracted a number of large companies over the last dec-
ade. Since 2008, freight company DHL has used Leipzig/

135
CITY PROFILE n L E I PZ I G
Halle Airport as its central European hub. The city has also
attracted major companies in the automotive and com-
ponent supply industries, now a key sector for the Leipzig
economy, including a new Porsche factory in 2002 and a
BMW plant that opened in 2005.
NO LONGER AN INSIDEr TIP FOR INVESTORS
The positive demographic and economic development in
recent years is also reflected in rising prices in Leipzig’s
residential market. The median asking rent of €5.63 per
square metre in 2015 ranked just 25th out of the 29 cities
analysed in this report, level with neighbouring Halle. How-
ever, this represented a 12.6 per cent rise in asking rents
since 2012. Only five of the cities studied (Berlin, Augs-
burg, Bruns­wick, Hanover and Munich) posted higher
growth in asking rents. The active market vacancy rate in
apartment buildings in Leipzig of 6.0 per cent (2014) is
above the level of other major eastern German cities, such
as Dresden, Magdeburg, Cottbus, and Rostock. However,
this has fallen appreciably (-10.0 per cent) since 2009.
Historical buildings, buildings of Plattenbau (slab construc-
tion) and post-reunification buildings are all affected by
vacancy in the city, which is primarily attributable to high
levels of construction activity in the 1990s and subsequent
excess supply. Vacancies are primarily concentrated in pe-
ripheral city districts.
136
For investors, Leipzig’s residential market is no longer an
inside tip. The city is one of the growth centres in the
eastern German federal states yet still has moderate ask-
ing rents and is frequently described as having a balanced
risk-return profile. Investors are now increasingly shifting
their attention to average and basic locations since sup-
ply in refurbished historical buildings in central submar-
kets is already scarce. Indeed the city has a large propor-
tion of historical buildings. Buildings in this age category
account for the majority (52.9 per cent) of the total of
59,522 buildings with residential accommodation accord-
ing to the last census.
THE CITY CENTRE IS THE MOST EXPENSIVE
Owing to its history, Leipzig remains a tenants’ city. Only
11.1 per cent of housing is owner-occupied according to
the most recent census. Apartments in apartment build-
ings are the predominant category of housing. While
there was a significant increase in construction of owner-
occupier homes in Leipzig following German reunifica-
tion, apartments in apartment buildings still represent
the vast majority of housing with 90 per cent of the total
stock. For both of these reasons, the rental apartment
market plays an important role in the city. However, the
supply of rental apartments in Leipzig is vast with only
Berlin having more apartments on the market. As per the
investment market, the rental apartment market is cur-
rently witnessing high demand for refurbished historical
buildings in central locations. Highly popular areas in-
clude the Waldstraßenviertel in the City Centre North-
west area, Südvorstadt, and the Musikviertel in the City
Centre Southwest area. In line with their high propor-
tion of historical buildings, the central districts also show
the highest median asking rents in Leipzig. Landlords
quoted the highest rent of €7.46 in the City, City Cen-
 CITY PROFILE n L E I PZ I G

DISTRIBUTION OF ASKING RENTS IN LEIPZIG 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

4.7 2.3 28.6 20.9 35.6 35.1 17.7 21.4 7.2 10.3 6.2 9.9
40%

30%

20%

10%

0%

under €4.00 €4.00 to €4.99 €5.00 to €5.99 €6.00 to €6.99 €7.00 to €7.99 €8.00 and over

Rents in Leipzig remain inexpensive. Some 58 per cent of listings were below the
€6.00 per square metre mark in 2015. However, there is clear growth in asking rents
as 69 per cent of listings in 2014 were lower than €6.00.

tre South, and City Centre West [18] submarkets. This
area was also the first to break the €7-mark in 2014. The
City Centre East and Southeast areas including Süd-
vorstadt [17], as well as City Centre North and North-
west [16] were somewhat less expensive at €7.40 and
€7.00 per square metre respectively. However, all three
central areas have posted double-digit rental increases
in the last three years. Significantly lower asking rents
are found in the areas dominated by Plattenbau buildings.
This industrial mass construction method is prevalent in
the areas of Neu-Paunsdorf [06], Grünau North, Central
Grünau, Grünau East, Grünau-Siedlung, Schönau, Lausen,
and Miltitz [05], where landlords asked an average of
just €4.60 per square metre in 2015. However, even in
the area to the east of the main railway station compris-
ing Neustadt, Neuschönefeld, and Volkmarsdorf [12], the
median asking rent stood at a very moderate €5.00 per
square metre. This area is characterised by heterogene-

Key Figures for the housing market

Leipzig Saxony Germany

Average asking rent 2015 in €/m²/month 5.63 5.39 6.51

Average size of apartments on offer 2015 in m² 62.0 60.2 68.0
Vacancy rate in apartment buildings 2014 in % 6.0 6.5 3.0
Newly finished apartments1) per 1,000 residents 2014 1.4 1.5 2.7
Of which are in apartment buildings 2)
0.9 0.6 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

137
CITY PROFILE n L E I PZ I G

Asking Rents in Leipzig 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ] Anger-Crottendorf, Stünz, Sellerhausen, Heiterblick, 3,031 60.4 5.11

Alt-Paunsdorf, Schönefeld
[ 02 ] Connewitz South, Marienbrunn, Lößnig, Dölitz, Dösen 1,164 60.0 5.90
[ 03 ] Gohlis-Nord and -Süd, Eutritzsch 3,400 62.8 5.97
[ 04 ] Großzschocher, Knautkleeberg, Knauthain, Hartmannsdorf, 430 59.0 5.44
Knautnaundorf
[ 05 ] Grünau-Nord, -Mitte, -Ost, -Siedlung, Schönau, Lausen, Miltitz 1,931 63.4 4.60
Neu-Paunsdorf
[ 06 ] 314 60.7 4.60
[ 07 ] Leutzsch, Neulindenau, Böhlitz-Ehrenberg, Burgh., Rückmarsdorf 1,386 60.0 5.50
[ 08 ] Lindenau, Altlindenau 1,773 61.0 5.64
[ 09 ] Lindenthal, Wiederitzsch, Möckern, Wahren, Lützschena-Stahmeln 1,643 58.4 5.41
[ 10 ] Mockau-Nord and -Süd, Plaußig-Portitz, Thekla, Seehausen 902 58.7 5.23
[ 11 ] Mölkau, Zweinaundorf, Baalsdorf, Engelsdorf, Sommerfeld, 416 56.6 5.50
Althen, Kleinpösna
[ 12 ] Neustadt, Neuschönefeld, Volkmarsdorf 1,694 63.9 5.00
[ 13 ] Plagwitz, Kleinzschocher, Schleußig 1,888 61.0 5.98
[ 14 ] Reudnitz, Thonberg 1,191 64.1 5.67
[ 15 ] Stötteritz, Probstheida, Meusdorf, Holzhausen, Liebertwolkwitz 1,750 61.0 5.69
[ 16 ] City Centre North and Northwest 1,161 78.7 7.00
[ 17 ] City Centre East and Southeast, Südvorstadt 2,487 64.7 7.40
[ 18 ] City Centre, City Centre South and West 1,393 73.0 7.46
Leipzig average 27,954 62.0 5.63

ous development. There are historical buildings, often tenbau, which are partially or completely unrefurbished.
refurbished but partially substandard and still with stove The district does not have a clear image. However, per-
heating, for example. There is also terraced housing from ceptions have improved in recent years owing to the
the 1960s as well as four to five-storey buildings of Plat- Rabet redevelopment area.

LEIPZIG ATTRACTS COMPANIES AHEAD OF OTHER CITIES

With its population of 544,479, the largest city in Saxony has a long history as a city of both commerce and culture.
Renowned musicians and writers have worked in Leipzig, while the book industry and university can look back on
a long history in the city. In recent years, Leipzig has successfully completed a trend reversal both in population
terms and economic growth. A key factor in this has been Leipzig’s ability to successfully attract major companies
to the city even ahead of international competition. Asking rents remain at moderate levels in the city. However,
there is a clearly identifiable positive trend in the residential market, making the city attractive to investors. The
first supply shortages are already starting to appear in attractive areas.

138
 CITY PROFILE n L E I PZ I G

aVeraGe asKinG renTs in CiTY areas 2015

09 10

03

01 06

07 16
12
08
18 11
14
17
13
05

02 15

04

Median in €/m²/month

4.60 – 5.01 5.02 – 5.28 5.29 – 5.46 5.47 – 5.57 5.58 – 5.68 5.69 – 5.95 5.96 – 6.87 6.88 – 7.46

139
CITY PROFILE n LÜ B EC K

Lübeck: Trend reversal after a long period

of contraction
For more than 40 years, Lübeck’s population was in decline. Now it is rising again thanks to the
positive economic situation. This has also revived the housing market, although willingness to pay
is limited even in the prime segment.

After Kiel, Lübeck is the second-largest city in the federal
state of Schleswig-Holstein and is presently regarded as a
service and tourism centre in the western Baltic area. The
city is known for its medieval Old Town, which has been
a UNESCO World Heritage Site since 1987. More than a
quarter of all buildings in Lübeck city centre are listed as
historic monuments. The ferry port in Travemünde, which
operates numerous ferry routes throughout the Baltic re-
gion, and Lübeck marzipan are also well-known nationally.
Shipbuilding and heavy industry have long played an im-
portant role in the structure of Lübeck’s economy. In re-
cent times, industry in the city has experienced an upturn.
Key sectors today include food, healthcare, and logistics
as well as specialised mechanical engineering. The port
of Lübeck continues to be of high importance for the city,
as the largest German Baltic Sea harbour. Employment
trends have been positive in Lübeck during recent years.
From 2004 to 2014, the number of employees subject to
social security contributions grew by 15.9 per cent, which
was slightly ahead of the German average of 14.7 per cent.
The unemployment rate fell to 10.1 per cent (2014), al-
though this remains significantly above the nationwide
average of 6.7 per cent in Germany. Overall, however, the
previous long-standing trend of population decline has
been reversed. From the end of 2011 until the end of 2014,
the population grew by 1.8 per cent. This increase is exclu-
sively attributable to net migration, with natural popula-
tion growth in the city remaining negative. The 18 to under
30 age group is particularly well represented among those
relocating to the city. Persons aged 60 and above account
for 29.0 per cent of the city’s inhabitants, which is higher
than both the German average (27.4 per cent) and the
corresponding figures across all cities in the former West
German states in this report.

140
 CITY PROFILE n LÜ B EC K

In the peak season, more than 30 tonnes of marzipan are produced each day in
the Hanseatic City of Lübeck. By way of comparison, this is equal to the weight
of around 30 small cars.

SHORTAGE IN BASIC LOCATIONS
The positive trend in the economic situation and the popu-
lation has also had an impact on Lübeck’s rental apartment
market. The median asking rent per square metre rose by
1.8 per cent in 2015 while the vacancy rate fell from 1.9 per
cent to 1.4 per cent between 2009 and 2014. However, in
a city of relatively modest purchasing power, prospec-
tive tenants have rapidly reached their limit in terms of
ability or willingness to pay, particularly in the markets of
Lübeck with average rental levels, meaning that rents have
changed minimally year on year.
In contrast, the prime and basic locations have seen a
sustained rise. This indicates a shortage of living space of
basic quality, an area of the market in which privately-fi-

141
CITY PROFILE n LÜ B EC K
nanced new-build cannot create any additional supply in
the city owing to the costs involved.
Lübeck’s most expensive submarket has legally belonged
to the city since 1913, but is geographically and literally
outside. Travemünde [07] is a seaside and port location
with its own character and is popular with both permanent
residents and guests. As with many locations of this type,
the housing market in Travemünde is also strongly charac-
terised by tourism. There are numerous temporarily used,
owner-occupied and other holiday apartments, for which
far higher rental income can be generated over the year
than for normal rental apartments. The area shows a me-
dian asking rent of €8.30 per square metre, which is 3.7 per
cent higher than in 2014. However, the number of apart-
ments on the market was somewhat low at just 120 during
the period under consideration.
LARGE APARTMENTS IN THE OLD TOWN
The City Centre of Lübeck [01] is comprised of the Alt-
stadtinsel (Old Town Island), which is surrounded by the
River Trave and its canal. Lübeck’s retailers, service pro-
viders and cultural facilities are concentrated in this area.
The Old Town is the historic and ideal centre of the proud
Hanseatic City, which is further enhanced by its status as
a UNESCO World Heritage Site. The supply of housing is
very heterogeneous. There are very old, small houses here
with a historical flair, but often only in modest sizes and
not always to a contemporary standard. However, there are
also stylish apartments with a view of the water or across
the city’s landscape of towers and roofs. Even with middle-
class tenants, who often preferred villas in the suburbs in
previous years, the Altstadt is once again in vogue as a
residential area. There are ambitious development projects,
such as the Gründungsviertel district near the Marien-
kirche, where an area destroyed during the war is to be res-
142
urrected with contemporary housing built on the historic
plots. The median asking rent in the city centre is exactly
€8.00 per square metre and rose by 3.1 per cent in 2015 but
remains slightly below the 2012 figure (€8.02). In the Alt-
stadt, old buildings are also offered to let, which are tiny in
comparison to the owner-occupied homes in the suburbs
yet larger than many newer rental apartments.
EXTENSIVE AREAS OF APARTMENT BLOCKS with
mostly AVERAGE RENTS
The area comprising St. Jürgen East and Strecknitz [04] in
the southeast of Lübeck is ranked third in the city with a
median asking rent of €7.42 per square metre. The rental
market is characterised by expansive residential districts
from the pre-war and post-war periods, which are gener-
ously landscaped in some areas. The economical layouts,
which were the standard at that time, produce the lowest
available average size in the city of 55 square metres. Local
demand is buoyed by the university hospital and the uni-
versity of applied sciences in the area. The Altstadt is not
immediately adjacent to the area but is within easy reach.
Next in the rankings is the expansive and heterogeneous
area comprising the districts of St. Gertrud and Schlu-
tup [03], which border the city centre to the east and
north. St. Gertrud is an area characterised by the Wil-
helminian period in the northwest, while the east is char-
acterised more by post-war construction and is directly
opposite to the Altstadt. Marli, to the east of the centre
and part of St. Gertrud, has expansive areas of high-rise
buildings from the interwar and post-war periods. In Eich-
holz and in Schlutup, some way from the city centre, there
is a mixture of apartment blocks and areas of owner-occu-
pied property. The median asking rent in the entire area is
€6.83 per square metre, which is precisely the same level
as the previous year.
 CITY PROFILE n LÜ B EC K

DISTRIBUTION OF ASKING RENTS IN LÜBECK 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

4.0 2.6 36.0 34.3 35.9 35.4 17.0 18.2 4.9 7.3 2.2 2.2
40%

30%

20%

10%

0%

under €5.00 €5.00 to €6.49 €6.50 to €7.99 €8.00 to €9.49 €9.50 to €10.99 €11.00 and over

The majority of asking rents (almost 70 per cent) are between €5.00 and €7.99 per
square metre. The local high-priced segment is somewhat small, with only 9.5 per
cent of asking rents exceeding the €9.50 mark.

The St. Lorenz North and South submarket, as well as
Buntekuh [06], accommodate a very large area and
have the largest supply, in terms of quantity. The me-
dian asking rent of €6.80 per square metre is €0.14 be-
low the equivalent value for the entire city and growth in
2015 was slightly lower than the overall figure. St. Lor-
enz extends to the west of the Old Town and comprises
a variety of areas from the industrial properties near the
water and the Lübeck railway station district to stretches
of apartment blocks from all periods and areas of owner-
occupied property. Buntekuh, a product of the classic city
expansion of the 1960s and 1970s, witnessed vacancy
rates of up to 20 per cent after the year 2000. In 2006,
the area was included in the Federal State “Soziale Stadt”
(Social City) programme.

Key Figures for the housing market

Lübeck Schleswig-Holstein Germany

Average asking rent 2015 in €/m²/month 6.94 6.72 6.51

Average size of apartments on offer 2015 in m² 59.0 65.0 68.0
Vacancy rate in apartment buildings 2014 in % 1.4 2.7 3.0
Newly finished apartments1) per 1,000 residents 2014 2.0 3.5 2.7
Of which are in apartment buildings 2)
0.8 1.3 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

143
CITY PROFILE n LÜ B EC K

Asking Rents in lübeck 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ] City Centre 369 60.0 8.00

[ 02 ]
Kücknitz 157 59.0 5.93
[ 03 ] St. Gertrud, Schlutup 648 56.0 6.83
[ 04 ] St. Jürgen East, Strecknitz 286 55.0 7.42
[ 05 ] St. Jürgen West, Moisling 254 62.2 6.40
[ 06 ] St. Lorenz North and South, Buntekuh 857 60.0 6.80
[ 07 ]
Travemünde 116 60.0 8.30
Lübeck average 2,687 59.0 6.94

LOW-PRICED MARKETS IN EXTENSIVE POST-WAR The highest percentage increase of 6.3 per cent was
DISTRICTS found in the diminutive rental market in Kücknitz [02].
The southwest of Lübeck, comprised of the predominantly The district lies somewhat isolated between Lübeck and
commercial St. Jürgen West and Moisling [05], situ- Travemünde and was a stronghold of terraced housing,
ated far from the city centre, follow in the rental rankings which was popular during the post-war period. Today,
at €6.40. In the mid-1960s, the latter developed rapidly this is no longer the most popular form of housing, which,
from a marginalised, more village-like area into a residen- along with the location of the district in relation to Lübeck,
tial area on the outskirts of the city, with many terraced contributes to the city’s lowest median asking rent of
houses and high-rises. Like Buntekuh, it fell into crisis €5.93 per square metre despite the recent increase.
from the 1990s onwards, with rising vacancy rates. How-
ever, efforts are also being made here to promote struc-
tural improvement: The district is to receive a centre that
has been missing until now, as well as a stop on the rail-
way route to Hamburg. Numerous apartment blocks are
being modernised and some are even being rebuilt. This
is also intended to improve the partially difficult social
structure. Landlords are already more optimistic. The me-
dian asking rent rose by 4.3 per cent in 2015, the second-
highest relative increase in the city.

OPPORTUNITIES FOR THOSE WITH GOOD KNOWLEDGE of the market

After some difficult decades, Lübeck’s landlords are once again optimistic – although some to a greater degree
than local affluence permits. Prime rents are, therefore, significantly limited at present. Investors must pay at-
tention to location and quality of living if they are to market their product successfully, while the age structure in
Lübeck could bring apartments suitable for senior citizens into the spotlight. In the lower-priced segments, there
are indications of a supply shortage, which offers potential to investors. However, the majority of the buildings
from the pre-war and post-war periods are in need of restoration, meaning that modernisation costs must be
added to the purchase price in most cases. Lübeck generally remains a location that requires precise knowledge
of the micro-locations and tenant preferences.

144
 CITY PROFILE n LÜ B EC K

aVeraGe asKinG renTs in CiTY areas 2015

Bay of
Lübeck

07

02

03

06 01

04

05

Median in €/m²/month

5.93 – 6.28 6.29 – 6.60 6.61 – 6.81 6.82 – 6.83 6.84 – 7.27 7.28 – 7.71 7.72 – 8.07 8.08 – 8.30

145
CITY PROFILE n M AG D E B U R G

Magdeburg: Recovery following a long crisis

Magdeburg has had to contend with a population decline of more than 20 per cent but has since
managed to reverse the trend and is now expanding again. Demand is high for residential property
in the centre. However, asking rents are also rising in less popular peripheral locations.

Following German reunification, Magdeburg initially suf-
fered a dramatic contraction. Between 1990 and 2002,
the city lost around 50,000 of its inhabitants – more than
20 per cent of the city’s population. However, the city’s
core industrial sector (mechanical engineering) has since
overcome the adjustment crisis and started to expand
again, not least through the production of wind power in-
stallations. The logistics sector is also growing in a city
that is well connected by road, rail, and waterways. Sun-
rise industries such as environmental technology and re-
cycling management, the processing of renewable raw
materials, and the healthcare sector are also well repre-
sented. A quite new sector to the city is national electron-
ics services, including T-Systems’ largest data centre in
Germany and an IBM service centre. Magdeburg’s strong
regional position is reinforced by its status as the state
capital of Saxony-Anhalt, a university city and a centre of
commerce and services. All of this is reflected in the city’s
population growth.
The years of contraction have given way to moderate
growth. From the end of 2011 until the end of 2014, the
population rose by 1.5 per cent. Owing to the high propor-
tion of senior citizens and the large population losses in
previous years, projections for the population and num-
ber of households through to 2030 are rather negative.
Indeed, only Chemnitz and Halle have worse projections
across the 29 cities studied. However, the current trend is
contradicting these forecasts.
RESIDENTIAL PROPERTY IN DEMAND CITYWIDE
Magdeburg’s residential market also contracted after
1990, although it did not become quite as unbalanced as
other eastern German cities. This was partly attributable
to rigorous demolition programmes. Demand has since
been revitalised and the vacancy rate has fallen from
7.7 per cent in 2009 to 5.5 per cent in 2014. While the
median asking rent of €5.45 per square metre in 2015 is
still at a low level compared with other major cities, this

146
 CITY PROFILE n M AG D E B U R G

Contrary to the trend in the federal state, net migration in Magdeburg has
been consistently positive for years. Since 2007, the city has gained almost
11,000 inhabitants via net migration.

figure reflects an increase of 2.8 per cent compared with
the previous year. With the exception of the area com-
prising Rothensee and Neustädter See [07], all individual
districts of the city witnessed an increase in asking rents
to a greater or lesser degree.
The Altstadt district led the city’s asking rent ranking with
a median figure of €5.80 per square metre along with
Buckau [02], the adjacent district to the south. The north
of the Altstadt has little historic building stock as a result
of the Second World War and is, instead characterised by
large-scale development from the former East Germany.
The southern part of the district still features much archi-
tecture from the Wilhelminian era, while the area around
Hasselbachplatz with its many renovated ornate facades

147
CITY PROFILE n M AG D E B U R G
is one of the most popular areas in the city. The area is
characterised by the nightlife district near Hasselbach-
platz with its numerous bars and restaurants as well as
the River Elbe, which flows to the east of the Altstadt. The
often very narrow backyards detract only slightly from the
area’s reputation. The adjoining Buckau area to the south
is also close to the river but is somewhat greener and less
densely developed. There is a close mix of residential and
commercial uses, which is an advantage in terms of short
travel distances but a disadvantage with regard to traffic,
noise and the cityscape.
POPULAR HISTORIC SETTLEMENTS
To the west of the Altstadt area, but separated from it
by the main railway lines and federal road 71, is Stadt-
feld, which is adjoined by Diesdorf [08] towards the city
boundary. The area recorded the second highest rental
level in Magdeburg of €5.70 per square metre. Stadtfeld-
East still features many houses from the Wilhelminian era,
many of which have been extensively modernised over the
last 25 years. Another large proportion of development
dates back to the period following the First World War,
such as the early modern Hermann-Beims-Siedlung with
2,000 homes as well as the traditionally arranged owner-
occupier area of Lindenweiler. Numerous four to five-sto-
rey apartment blocks were constructed here in former
GDR times. Even modest apartments were sought after in
2015. The least expensive decile of median asking rents
stood at exactly €5.00; the highest figure among all of the
lowest deciles in the city.
148
The third most expensive area in terms of median asking
rents is the extensive eastern part of the city [04] on the
right bank of the Elbe, which benefits from a low develop-
ment density. The area comprises a variety of smaller lo-
calities, such as Brückfeld, Cracau, and Prester. The larg-
est district, Cracau, is particularly popular owing to its
proximity to both the city centre and the open landscapes
along the Elbe. The residential area of the same name dat-
ing from around 1930 and providing some 2,000 homes
projects an almost unaltered Bauhaus-period atmosphere.
Brückfeld is of mixed development that primarily dates
back to imperial times and the former East Germany. The
Angersiedlung area, developed over 38 years from 1900,
is particularly attractive and features all of the prevailing
architectural styles from this prolonged period. The me-
dian asking rent in eastern Magdeburg in 2015 stood at
€5.60 per square metre. The equivalent figure in the small
suburban submarket comprising Ottersleben and Suden-
burg Southwest [05] was just €0.12 lower.
OLD BUILDINGS IN NEUE NEUSTADT
In all other areas of Magdeburg, median asking rents were
below the level for the city as a whole of €5.45 per square
metre. Just five cents below this level at €5.40 were the
Alte Neustadt and Neue Neustadt [01] areas north of
Magdeburg city centre. The Alte Neustadt area, closer to
the city centre, was largely destroyed during the Second
World War and rapidly rebuilt with terraced properties,
predominantly around the expansive Nordpark. The green,
attractive location is popular today, although some hous-
ing does not meet current requirements in terms of size
and floor plans. The Neue Neustadt district is divided by
the old railway line to Berlin. Some areas are purely resi-
dential with rows of houses and green spaces, while oth-
ers feature a close mix of residential and commercial uses.
 CITY PROFILE n M AG D E B U R G

DISTRIBUTION OF ASKING RENTS IN MAGDEBURG 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

1.3 0.7 24.2 20.8 52.1 52.5 16.3 18.4 4.4 5.0 1.7 2.5
60%

50%

40%

30%

20%

10%

0%

under €4.00 €4.00 to €4.99 €5.00 to €5.99 €6.00 to €6.99 €7.00 to €7.99 €8.00 and over

Despite the rental growth, Magdeburg remained an inexpensive market for tenants
in 2015. Almost three quarters of asking rents were below €6.00 per square metre
while only 2.5 per cent stood at €8.00 or above.

The area comprising Reform, Hopfengarten, Beyendorfer
Grund and Lemsdorf [06] in the south of the city has a me-
dian asking rent of €5.25. Adjoining this area to the south
is Neu-Reform, an area characterised by Plattenbau (slab
construction) dating back to the former East Germany and
which does not appear successful either aesthetically or
socially. Some blocks were recently demolished. Close to
both areas is Hopfengarten, a spacious area characterised
by single-family houses and low population density.
TWO IN THREE INHABITANTS LEFT THE AREA
The area comprising Sudenburg and Leipziger Straße [09]
is situated to the southwest of the city centre and retains
much architecture from the Wilhelminian era, closely ad-
joined by major industrial plants. A second wave of devel-
opment commenced in 1990, creating the Hansapark and
Goethesiedlung neighbourhoods. The area also remains
home to many industrial companies. The housing supply
is extensive in the area. Consequently, the median ask-

Key Figures for the housing market

Magdeburg Saxony-Anhalt Germany

Average asking rent 2015 in €/m²/month 5.45 5.15 6.51

Average size of apartments on offer 2015 in m² 58.6 59.9 68.0
Vacancy rate in apartment buildings 2014 in % 5.5 7.0 3.0
Newly finished apartments1) per 1,000 residents 2014 1.6 1.0 2.7
Of which are in apartment buildings 2)
0.6 0.3 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

149
CITY PROFILE n M AG D E B U R G

Asking Rents in Magdeburg 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ] Alte and Neue Neustadt 640 57.1 5.40

[ 02 ] Altstadt, Buckau 634 62.9 5.80
[ 03 ] Olvenstedt, Kannenstieg, Neustädter Feld, Northwest 503 56.7 4.80
[ 04 ]
East 544 58.0 5.60
[ 05 ] Ottersleben, Sudenburg Southwest 162 55.0 5.48
[ 06 ] Reform, Hopfengarten, Beyendorfer Grund, Lemsdorf 292 50.6 5.25
[ 07 ] Rothensee, Neustädter See 193 49.5 5.14
[ 08 ] Stadtfeld East and West, Diesdorf 1,096 60.3 5.70
[ 09 ] Sudenburg, Leipziger Straße 945 62.0 5.20
[ 10 ] Westerhüsen, Salbke, Fermersleben, Beyendorf-Sohlen 261 57.0 5.02
Magdeburg average 5,270 58.6 5.45

ing rent remained a modest €5.20 per square metre in
2015 despite growth of 1.6 per cent. The area comprising
Rothensee and Neustädter See is situated in the far north
of the city and is developed around a rural core. Two resi-
dential areas emerged here during the interwar period and
a number of slab constructions were added around Neu­
städter Platz in the former GDR era. The median asking
rent is a moderate €5.14 per square metre. This was also
the only part of Magdeburg where the median asking rent
declined in 2015, falling by 1.2 per cent.
Westerhüsen, Salbke, and Fermersleben are former fishing
villages that have grown together along the Elbe. Together,
along with another peripheral area Beyendorf-Sohlen, they
form a single postcode area [10]. Due to the area’s iso-
lated location, the housing vacancy rate is high, particu-
larly along the heavily congested Alt-Salbke road, and the
overall median asking rent in the area is a rather modest
€5.02 per square metre.
Adrift at the bottom of the rankings are the areas of Olven-
stedt, Kannenstieg, Neustädter Feld, and Northwest [03],
where the median asking rent stood at just €4.80 per
square metre. Neu Olvenstedt was and remains the area of
city that features the most slab construction. The popula-
tion declined from approximately 30,000 in 1989 to some
10,000 in 2014, leaving 30 per cent of housing vacant at
times. Around 3,000 units have since been demolished
and others converted into terraces.

GROWING DIVIDE BETWEEN CENTRE AND OUTSKIRTS

Magdeburg’s residential market may have recovered but the city is not a place of unbridled euphoria. The nega-
tive experiences of the last 20 years do not allow this and, despite improved data, hopes for the future are still
insufficiently positive. The industrial economy could weaken and the ageing population could become a growing
problem. Consequently, the trend in Magdeburg is not towards excessive new-build but towards well-considered
improvement of the existing stock. Investment is normally more worthwhile the closer the property to the city
centre. The rental divide between central and peripheral locations is likely to increase going forward.

150
 CITY PROFILE n M AG D E B U R G

aVeraGe asKinG renTs in CiTY areas 2015

07

03 01

08 02 04

09

05 06

10

Median in €/m²/month

4.80 – 5.04 5.05 – 5.16 5.17 – 5.22 5.23 – 5.33 5.34 – 5.45 5.46 – 5.57 5.58 – 5.69 5.70 – 5.80

151
CITY PROFILE n MAINZ

Mainz: Magnetic media city

The state capital of Rhineland-Palatinate is an attractive destination for young adults in particular.
The popular university city enjoys high net migration. In the housing market, demand has been
exceeding supply for many years, with the consequence that rents are rising.

Throughout its 2,000-year history, the city of Mainz, with
its 206,991 inhabitants (end of 2014), has always ben-
efited from its favourable location at the confluence of the
Rhine and Main rivers. The Romans built their “Mogontia-
cum” legion camp here, the origin of urban Mainz. Fred-
erick II called together the major holders of power in the
empire to the Reichstag in Mainz in 1235 and, as a mem-
ber of the Rhenish League of Cities, the city developed
into an important business location in the 13th century.
The invention of book printing and the printing press by
Johannes Gutenberg around 1450 revolutionised the de-
velopment of media, as well as the educational landscape.
The city is also well known as the home of the “Main-
zelmännchen” characters from German television channel
Zweites Deutsches Fernsehen, which, along with addi-
tional broadcasters such as Süddeutscher Rundfunk, 3sat
and several publishing companies, define Mainz as a me-
dia location. The former districts of Mainz-Amöneburg,
Mainz-Kastel, and Mainz-Kostheim (“AKK”) on the right
bank of the Rhine, as well as Mainz-Bischofsheim, Mainz-
Ginsheim, and Mainz-Gustavsburg, are a special political
situation. After the Second World War, the Rhine passing
through Mainz constituted the border between the French
and American occupation zones. The districts on the right
bank of the Rhine, to the north of the mouth of the Main –
Amöneburg, Kastel, and Kostheim – were handed over to
the City of Wiesbaden to be held in trust, which is still a
reason for animosity between the cities to this day. The
districts on the right bank of the Rhine to the south of the
Main – Bischofsheim, Ginsheim, and Gustavsburg – be-
came independent local authorities in the administrative
district of Groß-Gerau. The new formation of the fed-
eral states of Hesse and Rhineland-Palatinate cemented
this partition. On the basis of the transfer of the territory
to Wiesbaden, which was never fully legally concluded,
the AKK districts still bear the prefix “Mainz” in their of-
ficial names and many inhabitants feel that they belong
to Mainz. In 2013, Mainz completed a mammoth urban

152
 CITY PROFILE n MAINZ

The media sector employees around 16,000 full-time personnel in the city of Mainz.
In other words, one out of six people with permanent employment contracts in
Mainz works in the media.

planning task that lasted over four decades. This was the
restoration of the 230,000 square metre old town south
of the cathedral. While a new, contemporary city centre
with department stores was created in the northern part
of the historic Altstadt, due to its virtually complete de-
struction during the war, nearly all of the buildings in the
southern part remained unscathed. At the beginning of
the 1980s, Mainz’s Altstadt was a dilapidated district in
need of reconstruction with catastrophic living conditions,
including partially collapsed buildings with musty, dark
courtyards, and tiny apartments with communal toilets in
the stairwell. Some 47 per cent of the buildings were ripe
for demolition and the traffic situation was chaotic. Today,
the district gleams with attractive pedestrianised zones

153
CITY PROFILE n MAINZ
with high recreational value and a high-quality living en-
vironment. Numerous monuments have been preserved,
while other buildings were reconstructed.
STRONG BUSINESS AND SCIENCE SECTORS
The City of Mainz is one of the top five urban centres in
the state of Rhineland-Palatinate and, together with the
Hessian state capital of Wiesbaden, forms a cross-state
dual centre with around 480,000 inhabitants. Thanks to
its central location in the Rhine-Main region, proximity to
Frankfurt am Main International Airport and good con-
nections to the motorway, Mainz is in high demand as a
business location. However, the flight traffic also causes
increased noise pollution in several locations. Mainz is
strongly represented in the information and communi-
cations technology, cultural and creative industries, and
healthcare sector clusters. The companies with the high-
est number of employees include the Johannes Guten-
berg University with its hospitals, the Mainz local authority,
ZDF, Schott, SWR, and publisher Verlagsgruppe Rhein-
Main. In addition to the three universities with a total of
40,000 students, there are also other institutions of higher
education in Mainz. The “Wissenschaftsallianz Mainz”,
with nearly 4,000 scientists, ensures the continuous trans-
fer of knowledge and technology in business and society.
154
NET MIGRATION DRIVING THE HOUSING MARKET
The population of Mainz grew by 3.0 per cent from the
end of 2011 until the end of 2014. The BBSR (Federal In-
stitute for Research on Building, Urban Affairs and Spatial
Development) predicts that the population will stagnate
on average between 2012 and 2030 and that the num-
ber of households will increase by 5.1 per cent. Rents in
the city centre, which have been rising for years, indicate
surplus demand. To relieve the strained housing mar-
ket, the City has designated 20 large sites for the devel-
opment of a potential 6,500 apartments, which could be
completed by 2020. The large development zones include
the Heiligkreuz site (1,950 apartments), the customs and
inland port (1,400 apartments), the Quartiersplatz Neu-
stadt site (up to 500 apartments), the GFZ barracks (up
to 500 apartments) and the Martin-Luther-King-Park (up
to 350 apartments). To implement the plans under the
new “Bündnis für das Wohnen” (Alliance for Living) initia-
tive, the City is entering into collaboration with the hous-
ing sector and the federal state. The City imposed a cap
of 15 per cent on rental increases within three years on
existing property in February 2015 as well as introduc-
ing the government Mietpreisbremse (capping of rents on
re-letting) in existing property in October 2015. Together
with its citizens, the City is also drafting an “integrated
development concept” intended to create future-oriented
perspectives on urban planning design over the next 10 to
15 years. Median exclusive asking rents – analysed across
the entire city area – rose from €9.47 in 2012 to €10.00 per
square metre in 2015 (+5.6 per cent). The highest rents,
averaging €10.95, are found in Oberstadt [09], a central
area characterised by Wilhelminian-era villas, large parks,
the baroque citadels from the 17th century and the uni-
versity hospitals. The Altstadt [01] area, one of the most
sought-after parts of the city following its revitalisation,
 CITY PROFILE n MAINZ

DISTRIBUTION OF ASKING RENTS IN MAINZ 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

1.2 1.1 11.9 9.3 40.6 38.5 33.2 37.0 8.2 10.1 4.8 4.1
50%

40%

30%

20%

10%

0%

under €6.00 €6.00 to €7.99 €8.00 to €9.99 €10.00 to €11.99 €12.00 to €13.99 €14.00 and over

Asking rents in Mainz are at a high level. In 2015, more than half of apartments
were listed for a minimum of €10.00 per square metre. Only 10.4 per cent of listings
were below €8.00.

is close behind with a median asking rent of €10.80. The
Neustadt [08] area, situated to the northwest of the Alt-
stadt, is also somewhat sought after, particularly by stu-
dents. The median exclusive asking rent here stood at
€10.01 per square metre in 2015. Although the district was
exposed to heavy destruction during the Second World
War, many Wilhelminian-era residential buildings were
preserved. In recent years, there has been careful renova-
tion of numerous locations in Neustadt, without destroy-
ing the urban character, with many squares, quiet streets
in terms of traffic, bars and cafés, small shops and handi-
craft businesses. Along the bank of the Rhine, there is a
customs and inland harbour, which will be converted into
a new, mixed-use district during the next few years. Ask-
ing rents were €10.00 per square metre in the area com-
prising Gonsenheim and Hartenberg-Münchfeld [06] as
well as Bretzenheim [02]. Mainz-Gonsenheim is virtually
a small city in itself, with an old town centre, grand villas

Key Figures for the housing market

Mainz Rhineland Palatinate Germany

Average asking rent 2015 in €/m²/month 10.00 6.29 6.51

Average size of apartments on offer 2015 in m² 63.0 75.0 68.0
Vacancy rate in apartment buildings 2014 in % 1.2 3.3 3.0
Newly finished apartments1) per 1,000 residents 2014 5.0 2.8 2.7
Of which are in apartment buildings 2)
3.8 1.0 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

155
CITY PROFILE n MAINZ

Asking Rents in mainz 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ]
Altstadt 429 62.0 10.80
[ 02 ]
Bretzenheim 224 58.0 10.00
[ 03 ] Drais, Lerchenberg, Marienborn 163 64.0 9.33
[ 04 ] Ebersheim, Hechtsheim 228 73.0 9.00
[ 05 ]
Finthen 186 68.3 9.29
[ 06 ] Gonsenheim, Hartenberg-Münchfeld 558 64.0 10.00
[ 07 ]
Mombach 191 64.0 9.38
[ 08 ]
Neustadt 386 56.0 10.01
[ 09 ]
Oberstadt 243 60.0 10.95
[ 10 ] Weisenau, Laubenheim 247 67.0 9.76
Mainz average 2,855 63.0 10.00

and modern residential areas, as well as a lively shopping a single-family home here. In addition to agriculture and
street, its own carnival tradition and the Lenneberg Forest vineyards, Hechtsheim has developed into the largest
as a local recreational area. In addition to being favoured business park area in Mainz since the 1960s, with various
by families, Hartenberg-Münchfeld, between the city cen- media organisations, research and IT companies.
tre and Gonsenheim, is also popular with students due to
its proximity to the university. Bretzenheim also benefits
from its proximity to the universities. In terms of urban de-
velopment, the district comprises numerous residential
high-rises in the south and a historic core featuring pre-
dominantly single-family and terraced housing. The low-
est median exclusive asking rent is €9.00 per square me-
tre in the areas of Ebersheim and Hechtsheim [04] in the
south of the city. In village-like Ebersheim, numerous new
residential areas have been created during the past years.
Young families have particularly realised their dream of

THE DYNAMIC MEDIA CITY SHOWS A GREAT DEAL OF CREATIVITY AND AWARENESS OF HISTORY

Mainz is the state capital of Rhineland-Palatinate and, with the Hessian state capital of Wiesbaden, forms a cross-
state dual centre with around 480,000 inhabitants. Thanks to its central location in the Rhine-Main region, prox-
imity to Frankfurt am Main International Airport and good connections to the motorway, Mainz is in high demand
as a business location. Mainz is strongly represented in the information and communications technology, cultural
and creative industries and healthcare sector clusters. Mainz is a growing city with high net migration, particularly
among young adults. The rising demand in the city centre, which is intensified by competition from retail and office
use, is not satisfied by adequate supply. Young families therefore tend to move out to districts that are further from
the city centre.

156
 CITY PROFILE n MAINZ

aVeraGe asKinG renTs in CiTY areas 2015

07

08

06 01

05 09

02

03 10

04

Median in €/m²/month

9.00 – 9.30 9.31 – 9.34 9.35 – 9.52 9.53 – 9.88 9.89 – 10.00 10.01 – 10.02 10.03 – 10.70 10.71 – 10.95

157
CITY PROFILE n MANNHEIM

Mannheim: Making space in the

“square city” with lateral thinking
Mannheim is the cultural and economic centre of the Rhine-Neckar metropolitan region, which has
a population of 2.4 million people. Over the coming years, the city faces the challenge of integrating
some 500 hectares of space requiring conversion both qualitatively and quantitatively.

Whether in business, music or architecture, Mannheim,
with its 299,844 inhabitants, combines the classical with
the modern and tradition with a passion for experimen-
tation. The city was even founded under the motto “new
thinking”. Elector Friedrich IV of the Palatinate commis-
sioned the creation of Mannheim in 1606 in the contem-
porary image of an ideal city with strong ground plan
geometry. Today, the image of the city centre is still char-
acterised by the grid-like road network and division of
space into quadrants. In 2016, Mannheim is due to re-
ceive a local chamber of the unified European Patents
Court owing to the high quality of its patent jurisdiction.
The city is well situated geographically, enjoying a central
location at the confluence of the Rhine and Neckar riv-
ers. Mannheim has a highly developed infrastructure with
connections to the national motorway network, the sec-
ond largest ICE terminal in Germany, Frankfurt’s inter-
national airport within 30 minutes and the Rhine-Neckar
harbour, one of the largest inland harbours in Germany.
Mannheim in Baden Württemberg is separated from its
sister city, Ludwigshafen in Rhineland-Palatinate, only by
the Rhine. Together with the university city of Heidelberg,
these form the core of the prospering Rhine-Neckar met-
ropolitan region.
The “square city” is one of the most attractive business lo-
cations in Germany. Global players such as Daimler, ABB,
John Deere, Roche Diagnostics, Siemens, and Bilfinger are
represented in the city along with medium-sized “hidden
champions” of the calibre of Fuchs Petrolub, Südzucker,
and MVV Energie. The city has a balanced sector mix
comprising vehicle manufacturing and mechanical engi-
neering, electrical engineering, chemicals and pharma-
ceuticals, and medical technology. The City also intends

158
 CITY PROFILE n MANNHEIM

The handover of US military barracks in Mannheim has cleared around 500 hec-

tares used by the American armed forces for conversion. This is roughly equivalent
to the area of 700 football pitches.

to expand its energy, environment, transport, and logistics
clusters. Furthermore, Mannheim is also establishing itself
as the “secret capital city of music” with Germany’s first
business incubator for the music sector and the formation
of Germany’s only state university for popular music and
music business. Overall, state and private universities in
the city have around 26,000 enrolled students.
A CITY HEADING FOR NEW HORIZONS
Mannheim’s residential market is witnessing rising de-
mand. The population rose by 2.9 per cent from the end
of 2011 to the end of 2014 alone. Between 2012 and 2030,
the number of inhabitants is projected to rise by 4.1 per
cent, while the number of households is even expected
to increase by 8.2 per cent. Only Freiburg and Wiesbaden

159
CITY PROFILE n MANNHEIM
have higher projections among the 29 cities studied. In
this respect, it is a challenge that Mannheim has had
a low supply of available land to date and only a mod-
est supply of medium to high-quality housing. In addi-
tion to the population growth, therefore, there is also an
increase in the number of commuters. Now, however,
the withdrawal of the US armed forces, which have been
stationed in the city since the end of the Second World
War, will free up some 500 hectares for conversion. To-
gether, this area is five times as large as Mannheim city
centre. The City has laid down its objectives for manag-
ing the land in a “conversion white paper”. The process
involved a broad public consultation and took on board
the ideas expressed by inhabitants of the city. A large
number of apartments will be demolished on the sites of
the Benjamin Franklin Village and the Funari and Sullivan
Barracks. At the same time, high-quality new-build areas
as well as retail, sports and school facilities will be devel-
oped. The Turley site will be developed with a vibrant mix
of residential and commercial space. The Taylor Campus
is earmarked to receive a mix of commercial and green
space as well as a media park. The hangars at the Spinelli
Barracks will almost completely give way to open spaces,
some of which will be used for the German National Gar-
den Festival in 2023, thus becoming part of the “Grünzug
Nordost”, the largest tract of green space in Mannheim.
The remaining space will be used for residential develop-
ment to complement the old buildings worthy of preser-
vation. The former airfield, the Coleman Barracks, which
is the largest barracks site, will be largely cleared, creat-
ing space for nature and climate improvement and, from
2016, will contribute to improving the northern districts of
Mannheim. Within 10 years, the conversion areas should
provide new housing for 10,000 people. The Hammonds
Barracks in the Seckenheim district will be re-developed
160
as a residential area by the Institute for Federal Real Es-
tate (BImA). The City intends to use the conversion as an
opportunity to become more diverse, vibrant, urbane, at-
tractive and open. The space will be marketed to a size,
time frame and mix of uses, which is sensitive to the
available demand and in such a manner as to avoid over-
loading the absorption capacity of the property market.
NEW URBAN QUARTERS FOCUS ON MIXED USES
Another major urban development project is the 33-hec-
tare Glückstein area in the Lindenhof district, which is
emerging in the immediate vicinity of the main railway
station. When complete, the area will provide accommo-
dation for 4,600 jobs and 1,500 inhabitants. In the heart
of Mannheim city centre, in quadrants Q  6 and Q  7, an ur-
ban quarter is scheduled for completion by 2016 that will
combine event shopping, high-quality living space, com-
mercial space, and a hotel. The former four-hectare post
office site at Mannheim train station will also be trans-
formed into a cluster of hotels, boarding houses, offices,
and apartments. Meanwhile, Willy-Brandt-Platz and the
southern end of the area will each be developed with a
high-rise block.
LOW DEVELOPMENT ACTIVITY IN THE CITY
The state statistical office estimated that there were
623 residential units completed in Mannheim in 2014
(2013: 259), while planning permission was granted for a
further 602 units (2013: 382). The active market vacancy
rate according to the CBRE-empirica vacancy index stood
at 1.9 per cent in 2014.
The city centre housing stock in the “square city” was al-
most completely destroyed in the Second World War. The
majority, almost 52 per cent, of the current 41,343 build-
ings in Mannheim with residential accommodation was
 CITY PROFILE n MANNHEIM

DISTRIBUTION OF ASKING RENTS IN MANNHEIM 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

4.3 3.3 34.7 29.3 32.7 35.8 16.8 19.3 6.9 7.3 4.7 5.1
40%

30%

20%

10%

0%

under €6.00 €6.00 to €7.49 €7.50 to €8.99 €9.00 to €10.49 €10.50 to €11.99 €12.00 and over

The majority of asking rents (approximately 65 per cent) range between €6.00 
and €8.99 per square metre. All price segments from €7.50 upwards accounted for
a larger proportion of asking rents compared with 2014.

therefore built between 1949 and 1986 according to the
2011 census. Nevertheless, some 32 per cent of this build-
ing stock was built prior to 1948. On the other hand, only
around 5 per cent was built after 2000.
MODERATE INCREASE IN ASKING RENTS
The median asking rent in Mannheim stood at €8.10 per
square metre in 2015; €0.22 higher than in the previous
year. Only in two districts did rents remain almost at the
same level year on year. In the most expensive area of
Schwetzingerstadt/Oststadt [09], which features a high
proportion of old villas and Wilhelminian-era houses, the
rental level fell from €8.98 to €8.95 per square metre. In
the area comprising Lindenhof and Neuostheim/Neu-
hermsheim [04], close to both the city centre and ex-
panses of water, the equivalent figure fell from €8.80 to
€8.78, although prime asking rents in the upper market
segment here start at €11.89 and €12.00 respectively. The

Key Figures for the housing market

Mannheim Baden-Württemberg Germany

Average asking rent 2015 in €/m²/month 8.10 7.82 6.51

Average size of apartments on offer 2015 in m² 66.1 75.0 68.0
Vacancy rate in apartment buildings 2014 in % 1.9 1.8 3.0
Newly finished apartments1) per 1,000 residents 2014 2.1 3.1 2.7
Of which are in apartment buildings 2)
1.5 1.6 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

161
CITY PROFILE n MANNHEIM

Asking Rents in Mannheim 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ]
Friedrichsfeld 48 69.1 7.00
[ 02 ] City Centre/Jungbusch 628 64.1 8.81
[ 03 ] Käfertal, Vogelstang 266 68.0 7.44
[ 04 ] Lindenhof, Neuostheim/Neuhermsheim 374 72.0 8.78
[ 05 ]
Neckerau 338 62.0 8.33
[ 06 ] Neckerstadt-Ost and -West 525 60.0 7.86
[ 07 ] Rheinau, Seckenheim 389 68.4 7.61
[ 08 ] Sandhofen, Schönau, Waldhof, Gartenstadt 304 70.0 7.50
[ 09 ] Schwetzingerstadt/City East 395 66.0 8.95
[ 10 ] Wallstadt, Feudenheim 223 76.0 7.90
Mannheim average 3,490 66.1 8.10

City Centre/Jungbusch [02] area is also expensive with
a median asking rent of €8.81 per square metre. Follow-
ing the arrival of the Musikpark and Popakademie Baden-
Württemberg as well as the construction of modern stu-
dent apartments, the Jungbusch district with its harbour
atmosphere and multi-cultural population has developed
into a trendy and sought-after area. The creative business
centre, which opened its doors at the start of 2015, rein-
forces this trend.
The lowest asking rents were found in the more peripheral
districts such as Friedrichsfeld [01] at €7.00 per square
metre (2014: €6.96), the area comprising Käfertal and
Vogelstang [03] at €7.44 per square metre (2014: €7.35)
and the area comprising Sandhofen, Schönau, Waldhof,
and Gartenstadt [08] at €7.50 per square metre (2014:
€7.19). Development here is predominantly small-scale
and occasionally rural (Sandhofen) or based upon a gar-
den city model, complemented by areas of high-rises
such as those in north west Schönau and northern Wald-
hof. These areas may change when the new Stadtbahn
Nord light railway connects the districts of Neckarstadt-
East, Käfertal, Waldhof, and Gartenstadt with Mann­
heim’s city centre from mid-2016.

THINKING OUTSIDE THE BOX TO CREATE URBAN DIVERSITY

The “square city” of Mannheim is one of the most attractive business locations in Germany. Global players are
equally as attracted to the city as medium-sized “hidden champions”. The city at the confluence of the Rhine and
Neckar rivers impresses with its central location in Europe, well-developed infrastructure, cultural diversity, excel-
lent housing and shopping facilities, and a total of more than 34 square kilometres of forests, waterways, and rec-
reational space. The lively collaboration between the city’s universities and numerous research institutions and
local industry guarantees a broad knowledge transfer. Rents are currently rising further owing to positive popula-
tion growth and low amounts of new build activity. However, the withdrawal of US armed forces has freed up some
500 hectares of space for conversion in the city.

162
 CITY PROFILE n MANNHEIM

aVeraGe asKinG renTs in CiTY areas 2015

08

03

06

02 10

09

04

05

07 01

Insufficient number of cases

Median in €/m²/month

7.00 – 7.44 7.45 – 7.53 7.54 – 7.70 7.71 – 7.88 7.89 – 8.17 8.18 – 8.67 8.68 – 8.80 8.81 – 8.95

163
CITY PROFILE n MUNICH

Munich: City of arts and science

The Bavarian state capital is a city of the arts, culture and tradition but has also developed into a
hub of transport, leading research, relations and sustainable development. The constant population
growth makes Munich’s housing market the most expensive in Germany.

Munich is a city of superlatives, tolerance, and diversity.
The Bavarian capital has the highest purchasing power per
capita in the country of €29,037, the lowest unemploy-
ment rate of 5.2 per cent, and the lowest active market va-
cancy rate of all major German cities studied in this report
of 0.4 per cent. Munich is home to many different peo-
ple; the high society of the rich and beautiful, the scenes
in Schwabing, Haidhausen, and Neuhausen, the revellers
at the Oktoberfest and the friendly people who pack into
the countless beer gardens in their thousands during the
summer months. The city can also look back on a long tra-
dition of arts and culture. Under King Ludwig I of Bavaria,
Munich developed into a prestigious royal seat during the
19th century and a widely renowned city of the arts. His
son, Max II, promoted the humanities, gathered the literary
circle known as “The Crocodiles” and commissioned the
development of Maximilianstraße; now one of the most
exclusive and expensive shopping streets in Germany. He
was succeeded by the mysterious “fairy tale King” Ludwig
II of Bavaria, to whom the state owes a number of impres-
sive structures such as the Linderhof, Neuschwanstein,
Herrenchiemsee, and Schachen palaces. Under Prince Re-
gent Luitpold, Munich experienced a major economic and
cultural boom. From 1911, “The Blue Rider” group of artists
was formed in the city, led by Wassily Kandinsky and Franz
Marc. Their works still raise the heartbeats of art lovers
today and change hands for millions at auctions. Munich
culture was also represented by humorist Karl Valentin
with his absurd and comical wordplay, which thrilled audi-
ences on the stage of the “Frankfurter Hof” from 1908. Val-
entin, whose memorable quotes included “I really would
have liked to love, but I didn’t trust myself to allow it”, has
been immortalised by the people of Munich in a fountain
sculpture in the Viktualienmarkt. Munich has never lost its
appreciation for the arts and culture throughout the eras.

164
 CITY PROFILE n MUNICH

Munich has by far the highest purchasing power index of all German cities. With
a figure of 132.8, the city is significantly ahead of Dusseldorf (118.7), Frankfurt (115.1)
and Stuttgart (114.0).

The Deutsches Museum, the Lenbachhaus, the three Pina- of the Bavarian parliament and the Bavarian state govern-
kothek galleries, and the Museum Brandhorst enjoy inter- ment as well as the Federal Finance Court and European
national acclaim for their exhibitions. In addition to art and Patent Office.
culture, Munich also benefits from a large supply of green
spaces, such as the Englischer Garten, the Hofgarten, the
botanical gardens and palace gardens as well as the River
Isar with its renatured Isar meadows. Munich is the seat

165
CITY PROFILE n MUNICH
ATTRACTIVE CONDITIONS FOR COMPANIES
The city of Munich is at the heart of the Munich metro-
politan region with a population of around 5.8 million and
optimal links to the European rail and motorway network.
Thanks to the new LGV Est high-speed extension, Paris
can be reached within around six hours. To the north,
Munich is connected to Nuremberg via a new high-speed
rail section, which is due to be extended to Berlin.
Munich Airport, the second largest in Germany, han-
dled approximately 39.7 million passengers in 2014; an
increase of around 3 per cent compared with the previ-
ous year. The airport is an important hub for European
air transport with over 240 direct routes worldwide, and
is scheduled to receive a third runway to cope with the
growing number of passengers.
The strength of the Munich economy is founded on a bal-
anced mix of global players, “hidden champions” in the
form of SMEs (small and medium-sized enterprises), as-
piring start-up companies and traditional craft businesses.
166
Particular growth drivers include information and commu-
nications technology, services, the automotive sector, re-
search and knowledge-intensive sectors, particularly life
sciences, medical and environmental technology and air
and space travel, as well as the finance sector. With around
40 trade fairs, Messe München is one of the world’s lead-
ing trade fair companies. Its most renowned events in the
real estate sector are Expo Real and Bauma. Munich is a
particularly significant location for cultural and creative in-
dustries, the majority of which can be categorised within
the media sector. Some 10,770 media companies gener-
ate combined annual revenues of almost €8.3 billion. The
film industry is particularly prominent in Munich. The heart
of Munich’s film industry is the Bavarian Film Group. The
300,000 square metre site includes 12 studios as well as
several mansion and street shooting locations. Besides Ba-
varia Film and its many subsidiaries, the site is also home
to more than 100 other media companies.
EXCELLENT HIGHER EDUCATION AND RESEARCH
With 15 universities, academies and colleges, Munich is the
second-largest university location in Germany after Berlin.
During the winter semester 2014/2015, Ludwig Maximil-
ian University of Munich (LMU) and the Technische Uni-
versität München (TUM) had approximately 89,000 reg-
istered students. In addition to the universities, Munich is
also reinforced as a research centre by such renowned in-
stitutions as the Fraunhofer Gesellschaft and Max Planck
Society. These are joined by specialist institutions such as
the Helmholtz-Zentrum – German Research Center for En-
vironmental Health, and the German Aerospace Center
(DLR) site in Oberpfaffenhofen. The close networking of
higher education institutions, extra-university research in-
stitutes and research-intensive companies creates profit-
able collaborations in Munich.
 CITY PROFILE n MUNICH

DISTRIBUTION OF ASKING RENTS IN MUNICH 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

5.6 3.1 19.9 14.2 35.9 38.1 21.7 25.5 9.8 11.1 7.1 8.0
40%

30%

20%

10%

0%

under €10.00 €10.00 to €12.49 €12.50 to €14.99 €15.00 to €17.49 €17.50 to €19.99 €20.00 and over

The curve of asking rents rises significantly from the €10.00 area, reaching its peak
between €12.50 and €14.99 before levelling off again. The high price segments from
€17.50 upwards showed an increase compared with the previous year.

THE CHALLENGE OF POPULATION GROWTH
The 2011 census for Munich shows 765,681 homes in
140,216 buildings with residential accommodation on the
effective date. Of these buildings, 21.6 per cent date back
to before 1949, 32.8 per cent were built between 1950 and
1969, 25.6 per cent were built between 1970 and 1989, and
20.0 per cent are no older than 1990. Buildings with three
or more residential units account for 87.7 per cent of homes.
In 2014, around 6,250 residential units were completed
(in new residential and non-residential buildings includ-
ing residential homes). Planning permission was granted
for 7,700 units in these segments. Single and two-person
households comprise the majority of households (ca. 80 per
cent). The proportion of single-person households (54.4 per
cent) is only exceeded in Kiel and Hanover. The 30 to un-
der-45 age group is well represented in Munich. Almost
25 per cent of Munich residents fall into this category com-
pared with a national average of less than 19 per cent.

Key Figures for the housing market

Munich Bavaria Germany

Average asking rent 2015 in €/m²/month 14.61 7.70 6.51

Average size of apartments on offer 2015 in m² 71.3 74.0 68.0
Vacancy rate in apartment buildings 2014 in % 0.4 1.6 3.0
Newly finished apartments1) per 1,000 residents 2014 4.4 3.7 2.7
Of which are in apartment buildings 2)
3.8 1.9 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

167
CITY PROFILE n MUNICH
The number of people living in Munich is primarily deter-
mined by migration. At the end of 2014, Munich’s popu-
lation stood at 1,429,584. Between 2012 and 2030, the
population is expected to grow by 4.3 per cent while the
number of households is expected rise by 7.6 per cent.
The flip sides of this constant growth are rising housing re-
quirements, high cost of living and increasing traffic. In or-
der to develop urban development countermeasures and
concepts, the City has compiled projections for migration
at district level for the period through to 2030. While most
districts on the outskirts of the city are expected to show
significant population growth, lower growth is projected
for the central districts. The largest percentage population
growth is expected in the districts of Aubing-Lochhausen-
Langwied (particularly due to the newly emerging Freiham
area), Schwabing-Freimann, Thalkirchen – Obersendling
– Forstenried – Fürstenried – Solln, Berg am Laim and Bo-
genhausen. The city centre districts and the areas around
the universities, such as Schwabing West, Schwabing-Fre-
imann, Ludwigsvorstadt-Isarvorstadt and Milbertshofen-
Am Hart will continue to see positive net migration up to
2030, particularly owing to 18 to 30-year-olds moving to
Munich from outside the city. Migration trends within Mu-
nich show a different picture. Those moving within Munich
are, on average, somewhat older than those moving into
the city and often have children. Going forward, they will
continue to prefer less central locations.
168
Over the last 20 years, some 650 hectares of former bar-
racks, railway, industrial and transport grounds have been
developed in Munich. By 2030, the City expects housing
requirements to total 152,000 new homes. However, build-
ing land reserves only provide capacity for 54,000 resi-
dential units. As part of Munich’s “long-term settlement
development” (LaSie) action programme, the City has
commissioned procedures to investigate the activation of
the required potential building land. This primarily involved
the densification of settlements from the 1950s and 1980s.
In addition, commercial areas would be transformed into
mixed use areas with a proportion of new types of hous-
ing while urban development projects would be progressed
in Munich Northeast in particular. In the second phase of
long-term settlement development, the City of Munich in-
tends to trial and implement concrete re-structuring and
densification projects. A structural concept is being cre-
ated for Munich Northeast.
To provide affordable housing, the City’s housing policy ac-
tion programme “Living in Munich V” includes the objec-
tives to grant new development rights for 3,500 residen-
tial units and to construct 1,800 subsidised apartments
every year between 2012 and 2016. In response to the in-
creasing land values and rents, the target groups will also
be extended to those on middle incomes. The action plan
provides for fixed areas of between 20 and 40 per cent for
housing associations and building co-operatives in new
developments in urban areas. Furthermore, when tender-
ing urban residential development sites, the City intends
to make increasing use of the conceptual tender process
to avoid excessive competition on price and take greater
account of the quality of the concepts in addition to price
factors. Some of the major planned residential develop-
ment projects are those in the Paul-Gerhardt-Allee area
in Munich West (2,400 apartments), at Campus South
in Obersendling (1,270 apartments), in Prinz-Eugen-Park
(1,800 apartments), in Messestadt-Riem (1,800 apart-
ments), on the site of the former signalmen’s barracks
(1,600 apartments), in the “Werksviertel München” project
near the Ostbahnhof station (1,400 apartments), on the
site of the Paulaner brewery (1,300 apartments), on the site
on Hochäckerstraße (1,100 apartments) in Perlach, on the
former “Agfa Camerawerk” site (1,000 apartments), in the
creative quarter on Dachauer Straße (900 apartments), in
Parkstadt Schwabing (900 apartments), and on the former
Bayernkaserne barracks site (4,000 apartments). The larg-
est project is the development of the new Freiham district,
where up to 10,000 new apartments are planned.
 CITY PROFILE n MUNICH

EXCLUSIVE ASKING RENTS RISE SIGNIFICANTLY
While many other major cities show by far the high-
est rents in the city centre and a significant differential
with those in the outskirts, Munich’s residential market is
more homogeneous with a median asking rent of almost
€13.00 per square metre found in suburban districts. The
median exclusive asking rent across the city as a whole
has risen from €12.88 in 2012 to €14.61 per square metre.
The median asking rent in 25 of the 30 city districts stud-
ied rose in 2015 compared with the previous year while
three districts posted a decrease and two remained sta-
ble. The highest rental increase was seen in the area com-
prising Parkstadt (South) and Prinzregentenstraße [18],
where the median asking rent was 17.9 per cent higher
than in the previous year. The highest median asking
rent of €18.38 per square metre was found in the trendy
area comprising Schwabing (West) and Neuschwabing
(East) [22]. This area includes the Elisabethplatz – an ac-
tive market square similar to the Viktualienmarkt – and
the Leopoldpark. The district’s image is characterised by
a wide assortment of cafés and bistros and a high propor-
tion of old architecture. These old buildings have been pre-
dominantly renovated to a modern standard. The magnifi-
cent apartment buildings in the Art Nouveau, historicism
and expressionism styles were once home to the Bohe-
mians. Average exclusive asking rents are only moder-
ately lower in the area comprising Parkstadt (South) and
Prinzregentenstraße (€17.08), the Altstadt , Maxvorstadt,
Isarvorstadt and Haidhausen [04] areas (€17.01) and the
area comprising Haidhausen-North, Steinhausen and Alt-
bogenhausen (West) [09] (€17.00). In the traditionally
sought-after area comprising Lehel, Englischer Garten, and
Altbogenhausen [11], asking rents decreased for the first
time since 2012, falling by 3.8 per cent compared with the
previous year to €16.37. Lehel, the area with the largest
apartments on the market at an average size of 95 square
metre, is one of the most attractive districts in Munich in
terms of architecture. Many of the residential buildings are
built in the neo-baroque or neo-renaissance styles. In ad-
dition to the Englischer Garten, the area is also home to
the Haus der Kunst art museum and the Bavarian National
Museum. One of the main attractions is the Eisbach with
its man-made wave that draws surfers from around the
world. Altbogenhausen was designed from the late Wil-
helminian period according to standardised urban devel-
opment principles as a large and prestigious area of villas
and apartment buildings and has largely retained its origi-
nal character until today. The lowest median asking rent of
€12.86 was found in Fürstenried-West [08] in the south-
western outskirts of Munich as well as in Untermenzing,
Allach, Ludwigsfeld, Feldmoching and Hasenbergl [29].
Only established in the 1960s, the district of Fürstenried is
primarily characterised by large-scale development which,
like in Hasenbergl, was intended to provide affordable
housing as quickly as possible for the growing population.
Today, the apartment blocks have mostly been extensively
refurbished and enhanced with green spaces.

MUNICH HARMONIOUSLY COMBINES DIVERSITY, INTERNATIONALITY AND TRADITION

The Bavarian capital has the highest purchasing power per capita, the lowest unemployment rate, the highest
asking rents and the lowest vacancy rate of all major German cities. With 15 universities, academies and colleges,
Munich is also the second-largest university location in Germany. In addition to its colleges, Munich is also bol-
stered as a research centre by a number of renowned institutions. The strength of the Munich economy is founded
on a balanced mix of global players, “hidden champions” in the form of SMEs, aspiring start-up companies and tra-
ditional craft businesses. The consistent growth provides for rising residential demand in the city, leading to higher
rents due to the inadequate supply. The City estimates that it will require 152,000 new apartments by 2030.

169
CITY PROFILE n MUNICH

Asking Rents in mUNICH 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ] Alt-Moosach (North), Moosach-Bahnhof (North) 82 60.0 14.44

[ 02 ] Alt-Moosach (South), Moosach-Bahnhof (South), 181 66.4 14.47
Neuhausen (North)
[ 03 ] Alte Heide (East), Hirschau, Biederstein, Münchner Freiheit (East), 274 81.2 15.42
Oberföhring, Herzogpark
[ 04 ] Altstadt, Maxvorstadt, Isarvorstadt, Haidhausen 831 75.0 17.01
[ 05 ] Am Riesenfeld, Milbertshofen, Neufreimann, Alte Heide (West), 391 61.9 14.17
Freimann, Obere Isarau
[ 06 ] Englschalking, Daglfing, Johanneskirchen 275 69.0 13.90
[ 07 ] Friedenheim, Land in Sonne (West), St. Ulrich, Blumenau, 502 62.9 13.93
Am Westbad, Pasing (East)
[ 08 ] Fürstenried West 63 69.0 12.86
[ 09 ] Haidhausen North, Steinhausen, Altbogenhausen (West) 159 82.0 17.00
[ 10 ] Harlaching, Neuharlaching, Giesing, Obergiesing (South) 470 77.0 14.50
[ 11 ] Lehel, Englischer Garten, Altbogenhausen 232 95.0 16.37
[ 12 ] Lerchenau Ost, Am Hart 94 70.0 13.42
[ 13 ] Marsfeld, St. Benno, Schwanthaler Höhe, Westend, 531 66.0 15.38
Neuhausen (South), St. Vinzenz, Alte Kaserne
Neuhadern
[ 14 ] 112 69.5 13.72
Obermenzing
[ 15 ] 140 83.5 14.02
[ 16 ] Obersendling, Thalkirchen, Siebenbrunn, Untergiesing 347 66.0 14.53
[ 17 ] Oberwiesenfeld, Dom Pedro, Nymphenburg (South), 278 71.0 14.70
Central Neuhausen
[ 18 ] Parkstadt (South), Prinzregentenstraße 187 80.2 17.08
[ 19 ] Pasing (West), Lochhausen, Langwied, Altaubing, Aubing-Süd, 401 75.0 13.36
Freiharn, Neupasing
[ 20 ] Riem, Trudering, Josephsburg, Echarding, Berg am Laim, 678 71.0 13.64
Ramersdorf (Centre/North)
[ 21 ] Schwabing (East), Münchner Freiheit (Southwest) 172 84.0 16.67
[ 22 ] Schwabing (West), Neuschwabing (East) 133 80.0 18.38
[ 23 ] Schwere-Reiter-Straße, Neuschwabing (West), Am Luitpoldpark 388 67.0 16.36
[ 24 ] Sendlinger Feld, Unter- and Mittersendling, Land in Sonne (East), 596 66.0 13.98
Am Waldfriedhof, Großhadern
[ 25 ] Solln, Forstenried 316 80.5 13.61
[ 26 ] St. Paul, Ludwigsvorstadt-Kliniken, Am südlichen Friedhof, 281 72.0 16.44
Am Schlachthof
[ 27 ] Südgiesing, Fasanengarten 169 72.7 13.55
[ 28 ] Untere Au, Obere Au, Obergiesing (North), Balanstr. West (North) 255 67.0 15.40
[ 29 ] Untermenzing, Allach, Ludwigsfeld, Feldmoching, Hasenbergl 274 70.0 12.86
[ 30 ] Waldperlach, Neuperlach, Altperlach, Ramersdorf (East) 407 74.0 13.21
Munich average 9,219 71.3 14.61

170
 CITY PROFILE n MUNICH

aVeraGe asKinG renTs in CiTY areas 2015

29 12

05
01

02 03
15 23 21
17
19 22 06
11
13 04
09 18
07
26
20
28
14
24

10 30
16

08
25 27

Median in €/m²/month

12.86 – 13.39 13.40 – 13.66 13.67 – 13.97 13.98 – 14.46 14.47 – 14.79 14.80 – 16.12 16.13 – 16.79 16.80 – 18.38

171
CITY PROFILE n NUREMBERG

Nuremberg: The knowledge economy hub

Bavaria’s second-largest city has successfully overcome the structural change from a traditional
industrial location to a state-of-the-art knowledge centre. The housing market is currently character-
ised by significant surplus demand – and asking rents are continuing to rise accordingly.

Nuremberg, which combines with Erlangen and Fürth to
form the centre of a coalescing metropolitan region home
to some 3.5 million inhabitants, has achieved a harmoni-
ous blend of tradition and modernity. The delightful his-
torical city centre, various cultural offerings, world-fa-
mous Christmas market, the annual International Toy Fair,
extensive shopping amenities, numerous green spaces,
local recreation areas and range of restaurants are con-
tinuously being improved and expanded. For residents,
these factors mean a high quality of life and for compa-
nies, a significant location advantage when competing
for the greatest minds. At the same time, the city is suc-
cessfully overcoming a comprehensive structural change,
away from traditional production and towards a high-tech,
“Industry 4.0” manufacturing and innovative service loca-
tion. On a daily basis, more than 140,000 employees sub-
ject to social security contributions commute to Nurem-
berg to work. Growth industries particularly include the
energy industry, information and communication tech-
nology, energy technology, sustainable urban infrastruc-
tures, medical technology and service development, as
well as logistics and logistics-related services. The nu-
merous universities as well as national and international
research institutions combined with the innovative net-
working of science, research and entrepreneurship qualify
Nuremberg as a knowledge economy hub with consider-
able potential. Nuremberg is traditionally a migrant city
and the population has risen consistently in recent years.
However, the housing stock has fallen significantly be-
hind the growing number of inhabitants. By 2030, the
population is projected to grow by 3.7 per cent compared
with 2012 levels, with the number of households rising
by 7.3 per cent. Single-person households are already
strongly represented in the city at present. Every second
household is comprised of only one person.

172
 CITY PROFILE n NUREMBERG

Nuremberg is the bratwurst capital. Around a billion of the sausages are made in
the city each year. By way of comparison, just 75 million Weißwurst (Bavarian veal)
sausages are produced each year in Munich.

NEW BUILD IS INCREASING BUT DOES NOT
COVER DEMAND
To take account of the population growth in terms of qual-
ity and quantity, the City commissioned the “Wohnen
2025” (Housing 2025) study to determine the concrete
measures required in the area of housing and building land
policy. According to the study, new-build requirements
by 2030 total around 23,000 residential units. However,
a comparison of new-build requirements and available
building land shows that, while 7,500 new-build residen-
tial units are required by 2020, the land available and
ready for building provides space for 1,860 units. The City
now intends to take the results of the study forward by
creating an action programme.

173
CITY PROFILE n NUREMBERG
In 2014, around 1,600 residential units were completed
(in new residential and non-residential buildings includ-
ing residential homes), which was below the projected re-
quirements. In order to drive the necessary construction
of rental apartments, the City has adapted subsidy condi-
tions to the changed market situation and has tightened
the “quota system” in the course of granting development
rights. Previously, an allocation of 30 per cent was required
for subsidised housing when building more than 100 multi-
storey apartments. In future, however, an allocation of
20 per cent of residential space will have to be made when
building more than just 70 multi-storey apartments. Sites
in the city will be increasingly allocated on the basis of
housing policy weightings (conceptual tender). Growth
in new-build activity will become increasingly difficult as
space becomes more scarce, particularly since there is
considerable competition for space between residential
and commercial uses and open space in Nuremberg. Ac-
cording to the 2011 census, there were 71,408 existing
buildings with residential space comprising 266,267 resi-
dential units. Owing to widespread destruction during the
Second World War, the majority of buildings in Nuremberg
(50.7 per cent) were built between 1949 and 1978. Prop-
erty built after 2001 accounts for just 6.6 per cent. Modi-
fication of existing buildings to present standards with
regard to energy and age-appropriate fit-out will create
challenges for landlords in the coming years.
174
STRUCTURAL CHANGE OPENS UP NEW DISTRICTS
The closure of large companies with a long tradition, such
as Grundig, Quelle, and AEG from 2003 to 2009 posed
major challenges for the City of Nuremberg. However,
these have been overcome with a high degree of innova-
tion. The site of the former AEG Group, for example, is be-
ing transformed into the “Auf AEG” district, which accom-
modates a variety of uses including offices, production,
handicraft, retail, restaurants, art, and culture. With the
support of the Free State, it will be developed into a sci-
ence and research location over the coming years. Con-
struction of up to 250 apartments is planned over the
coming years on a four-hectare subplot on the car park of
the former Quelle distribution centre. The centre itself, a
listed building that has accommodated numerous artists,
creatives and start-up companies as interim users in recent
years, was subject to a compulsory auction in July and, go-
ing forward, will be occupied for a variety of uses including
retail, offices, housing, a hotel, a creative hub, and leisure.
In the district of Maxfeld, the KIB group is developing the
“Nordstadtgärten”, with 600 to 800 apartments and gen-
erous landscaped areas on the site of the former Tucher
brewery by 2018. The conversion of Nuremberg’s former
Südbahnhof railway station on Brunecker Straße is one of
the largest urban development projects in Germany. The
95-hectare site is planned for development as a mix of res-
idential, commercial, and green space, with the latter occu-
pying around one third of the site. The Lichtenreuth urban
quarter is scheduled for completion in phases by 2032.
ASKING RENTS CONTINUE TO RISE
Nuremberg’s population grew by 2.2 per cent from the
end of 2011 until the end of 2014. Due to the positive
population growth and relatively conservative house-
building activity, rents have been rising steadily for years.
 CITY PROFILE n NUREMBERG

DISTRIBUTION OF ASKING RENTS IN NUREMBERG 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

4.4 3.1 27.6 21.6 35.9 38.7 19.5 22.0 7.5 9.6 5.1 5.0
40%

30%

20%

10%

0%

under €6.00 €6.00 to €7.49 €7.50 to €8.99 €9.00 to €10.49 €10.50 to €11.99 €12.00 and over

The price growth in Nuremberg is reflected in the distribution of asking rents.

More than a third of listings were more expensive than €9.00 per square metre in
2015 while only around a quarter of asking rents were below the €7.50 mark.

While landlords were quoting an average of just €7.65 per
square metre on new lettings in 2012, this rose to €8.12 in
2014 and €8.42 per square metre in 2015. The highest me-
dian asking rent of €9.50 per square metre is found in the
area comprising the Altstadt/St. Sebald [02] up towards
the castle. However, this compares with €9.69 in the pre-
vious year and €10.00 in 2012. Asking rents are moder-
ately lower in the North district [07] at €9.07, where the
increase of 9.9 per cent represented the strongest growth
in the city, and in the area comprising Pirckheimerstraße,
Uhlandstraße, Maxfeld, and Schleifweg [09] near the city
centre, with an average of €9.00 per square metre. This
area, adjacent to Sebalder Altstadt in the north, is in high
demand owing to its many green spaces and numerous
streets lined with houses from the Art Nouveau and Wil-
helminian periods. Of the 12 city districts studied, rents
only declined in one, while two remained stable and the
remainder showed increases in asking rents ranging from

Key Figures for the housing market

Nuremberg Bavaria Germany

Average asking rent 2015 in €/m²/month 8.42 7.70 6.51

Average size of apartments on offer 2015 in m² 66.0 74.0 68.0
Vacancy rate in apartment buildings 2014 in % 1.0 1.6 3.0
Newly finished apartments1) per 1,000 residents 2014 3.1 3.7 2.7
Of which are in apartment buildings 2)
2.2 1.9 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

175
CITY PROFILE n NUREMBERG

Asking Rents in nUREMberg 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ] Altstadt/St. Lorenz, Marienvorstadt, Tullnau, Wöhrd, Veilhof 494 60.0 8.65

[ 02 ] Altstadt/St. Sebald 200 62.0 9.50
[ 03 ] Bielingplatz, Sandberg, St. Johannis, Himpfelshof, Bärenschanze, 670 64.9 8.75
Eberhardshof, Muggenhof
[ 04 ] Gebersdorf, Röthenbach-West and -Ost, Eibach 246 70.0 8.00
[ 05 ] Langwasser, Dutzendteich, Beuthener Straße, Altenfurt 228 70.1 7.78
[ 06 ] Ludwigsfeld, Glockenhof, Guntherstraße, Hasenbuck 629 65.0 8.42
[ 07 ]
North 334 78.0 9.07
[ 08 ] East, Northeast 598 70.0 8.68
[ 09 ] Pirckheimerstraße, Uhlandstraße, Maxfeld, Schleifweg 559 67.0 9.00
[ 10 ] South, Southwest 278 78.0 7.66
[ 11 ] Tafelhof, Steinbühl, Gibitzenhof, Galgenhof, Hummelstein 672 63.0 7.76
[ 12 ] Werderau, Hohe Marter, Schweinau, St. Leonhard, Sündersbühl, 430 63.4 8.08
Gaismannshof, Höfen, Grossreuth
Nuremberg average 5,338 66.0 8.42

1.1 to 9.9 per cent. Nuremberg also introduced the Miet- In Steinbühl and Galgenhof, the structure of the district is
preisbremse (capping of rents on re-letting) on 1 August. changing with funds from the “Soziale Stadt” (Social City)
subsidy programme, as well as developments by private
In contrast, the lowest rents are found in the districts to investors.
the south and west of the city walls. In addition to the
southern and southwestern district of the city [10] at
€7.66 per square metre, this also includes the area com-
prising Tafelhof, Steinbühl, Gibitzenhof, Galgenhof and
Hummelstein [11] with a median asking rent of €7.76 per
square metre. These areas are characterised by small-
scale, mixed-use development comprising residential and
commercial property, mostly from the 1950s and 1960s.

CONSTRUCTION ACTIVITY IS INCREASING – RISING COMPETITION BETWEEN USE CLASSES

Nuremberg is developing into a successful knowledge economy hub with a growing population and a strong
economy. Due to positive population growth and relatively conservative housing construction activity, rents are
continuing to rise. The active market vacancy rate of 1.0 per cent indicates a significant surplus in demand. By
2030, the City estimates that it will require around 23,000 new homes each year. However, land is in short supply
and there is increasing competition from requirements for commercial use and open spaces. By 2032, one of the
largest urban development projects in Germany will be completed in the conversion of Nuremberg’s former Süd-
bahnhof railway station.

176
 CITY PROFILE n NUREMBERG

aVeraGe asKinG renTs in CiTY areas 2015

07

09 08

03 02 01

12 11 06

04 05

10

Median in €/m²/month

7.66 – 7.77 7.78 – 7.94 7.95 – 8.12 8.13 – 8.54 8.55 – 8.68 8.69 – 8.81 8.82 – 9.04 9.05 – 9.50

177
CITY PROFILE n R O STO C K

Rostock: Solid growth on the Baltic coast

buoyed by technology and tourism
Rostock has completed the trend reversal towards sustainable development earlier than
many other eastern German cities. The housing market is generally in good health, although
Plattenbauten (slab constructions) in peripheral areas remain a challenge for the market.

Rostock’s economic structure is characterised by its loca-
tion on the Baltic Sea. The major pillars of the economy
are the port, as a transhipment point for freight and ferry
traffic, as well as the large shipyards and tourism. The
university, Technology Centre Warnemünde and the In-
novations- und Gründerzentrum Rostock are the inno-
vative centres of the city. Rostock’s biomedical research
centre combines and networks the city’s biotech activi-
ties under the “BioCon Valley” initiative. The same objec-
tives in biomedical technology are served by the city’s in-
tegration into the international “ScanBalt initiative”. The
city’s broadly-based economy meant that Rostock tran-
sitioned from contraction to growth earlier than other
eastern German cities. Following a decline in population
of some 20 per cent, the nadir was reached in 2002 and
the city has been back on an upward trajectory ever since.
In 2014, Rostock had 16.4 per cent more employees sub-
ject to social security contributions than in 2004. This
places the city in the top half of all 29 cities studied in this
report and above the German average. The purchasing
power per capita is relatively low, but higher than in Leip-
zig, Magdeburg, Duisburg and Halle (Saale). Thanks to
the university and the burgeoning economy, the propor-
tion of 18 to 29-year-olds is above average. So too, how-
ever, is the proportion of those above the age of 59. Cur-
rent population and household projections for the period
from 2012 to 2030 are significantly negative. However,
this trend has not materialised to date.
SOUGHT-AFTER LOCATION, MODERATE RENTS
Thanks to the economic and population growth, Ros-
tock’s residential market is showing overall positive
growth, albeit there is much variation between the indi-
vidual districts. The median asking rent rose by 2.6 per

178
 CITY PROFILE n R O STO C K

The Hanse Sail is one of the world’s largest gatherings of traditional sailing ships
and an important factor for the Rostock economy. The event attracts five visitors
for every inhabitant of the city.

cent to €6.30 per square metre per month in 2015. The
vacancy rate, which at 4.3 per cent in 2009 was already
lower than in the majority of eastern German cities, fell to
3.1 per cent by 2014. In its most recent rent index, the City
stated: “Housing in Rostock is a valuable commodity and,
unfortunately, at present a rare one. […] It is, therefore,
all the more important to regulate the rare commodity of
housing such that it remains affordable. It will certainly
not succeed in satisfying all housing needs at low prices.”
Rostock’s rental distribution is similar to that in many
other cities. Central locations and historic areas near the
city centre are particularly sought after, while peripheral
areas comprising large quantities of apartment blocks
from the 1960s to 1980s face particular challenges. Un-

179
CITY PROFILE n R O STO C K
surprisingly, one submarket sits alone at the top of the
rent rankings: The seaside resort of Warnemünde. This
includes the rural tourist area of Diedrichshagen and the
locality of Hohe Düne, which is used exclusively for bath-
ing and hospitality. Warnemünde has been part of Ros-
tock since 1323 but lies around 10 kilometres northwest of
the city centre and, to this day, remains remote from the
city in terms of urban development. Historically, the local-
ity is a fishing and harbour area with a history of almost
200 years as a seaside resort. Today, the picturesque area
on the River Warnow and close to the beach is almost
completely dedicated to tourism. Condominiums are typi-
cally owned by holidaymakers and landlords from outside
the area. Rental apartments are concentrated in the inland
blocks and strips throughout the submarket with ask-
ing rents averaging €9.63 per square metre in 2015. Sup-
ply of unfurnished rental apartments in Warnemünde is
generally low. New development would make financial
sense. However, the residential area of Warnemünde is
surrounded by water, port businesses and protected land-
scapes and can still only be partially extended. New-build
developments have already commenced in the “Molen-
feuer” (lighthouse) and Dünenquartier areas while the
Mittelmole (central pier) offers further potential.
180
IDYLLIC STATION QUARTER
In more central Rostock, the city centre including the Alt-
stadt , Hansaviertel, and Kröpeliner-Tor-Vorstadt [01]
districts comprise the most expensive area. Asking rents
here averaged €8.50 per square metre in 2015. The Alt-
stadt still contains many historic buildings, which have
been extensively modernised in the last 25 years. Another
highly attractive area is the Bahnhofsviertel between the
historic centre and the train station – both central and
characterised by historic townhouses with tree-lined
streets and green courtyards. However, residential use
competes here with service companies who have also
long since discovered this practical yet prestigious area.
The vibrant demand and a number of brownfield sites also
make the centre a focal point for new-build rental prop-
erty, such as on the Am Vögenteich arterial route, in the
more peripheral Holzhalbinsel area and in the adjacent
Petriviertel district.
The western area comprising the Kröpeliner-Tor-Vorstadt
and Hansaviertel districts is somewhat more modest. To-
wards the city centre, old buildings from the Wilhelminian
era dominate while the remaining areas are characterised
by more recent and simple rental apartment blocks. The
further one travels from the city centre, the more recent,
modest and inexpensive the architecture and apartments
become. Purely in terms of postcode, the city centre also
includes the large eastern city district of Brinckmansdorf.
However, this area is of little significance for the rental
market since it almost exclusively consists of single-fam-
ily houses.
WHERE STUDENTS AND SENIOR CITIZENS LIVE
In Rostock’s Südstadt [05] district, the median asking rent
of €7.00 per square metre in 2015 was above the average
for the city. On the one hand, this is Rostock’s oldest area
 CITY PROFILE n R O STO C K

DISTRIBUTION OF ASKING RENTS IN ROSTOcK 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

12.5 11.0 43.3 42.2 17.8 19.0 17.0 17.4 6.6 7.8 2.7 2.6
50%

40%

30%

20%

10%

0%

under €5.00 €5.00 to €6.49 €6.50 to €7.99 €8.00 to €9.49 €9.50 to €10.99 €11.00 and over

Rostock’s rental market remains inexpensive, with more than half of apartments
marketed for less than €6.50 per square metre in 2015. Only around a quarter were
listed for more than €7.99 per square metre.

of Plattenbau buildings from the 1960s and has limited
architectural and atmospheric charm. On the other hand,
Südstadt begins a short distance behind the main train sta-
tion and is only 10 minutes from the Altstadt district by
tram. The area is also home to a number of university insti-
tutes. Südstadt is dominated by two demographic groups,
which are generally strongly represented in Rostock: Senior
citizens and students. The location is practical but is defi-
nitely not a trendy district.
In the western districts of Reutershagen and Evershagen,
the majority of the rental apartments date back to the
former East Germany. The first new-build area in Reu-
tershagen was completed in 1957 in the Soviet-inspired
monumental style, now kindly referred to as “social-
ist classicism”. Subsequently, Plattenbau buildings were
built firstly in Reutershagen, then in Evershagen, in rows,
blocks, long chains and high-rise blocks, as well as spe-
cial building types known as “windmills” or “stilted high-

Key Figures for the housing market

Rostock Meckl.-West. Pomerania Germany

Average asking rent 2015 in €/m²/month 6.30 5.80 6.51

Average size of apartments on offer 2015 in m² 58.0 60.0 68.0
Vacancy rate in apartment buildings 2014 in % 3.1 4.7 3.0
Newly finished apartments1) per 1,000 residents 2014 2.1 2.6 2.7
Of which are in apartment buildings 2)
1.3 1.1 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

181
CITY PROFILE n R O STO C K

Asking Rents in rostock 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ] Altstadt, City Centre, Hansaviertel, Kröpeliner-Tor-Vorstadt 1,157 56.0 8.50

[ 02 ] Gehlsdorf, Toitenwinkel, Dierkow, Rostock-Ost 781 61.6 5.11
[ 03 ] Groß Klein, Lichtenhagen, Lütten Klein, Schmarl, Evershagen (North) 1,355 57.7 5.52
[ 04 ] Reutershagen, Evershagen (South) 210 57.7 7.01
[ 05 ] Südstadt, Biestow, Gartenstadt/Stadtweide 143 52.0 7.00
[ 06 ] Warnemünde, Diedrichshagen, Hohe Düne 95 62.0 9.63
Rostock average 3,741 58.0 6.30

rises”, and finally stepped high-rises. The median asking
rent of €7.01 per square metre in Reutershagen and Evers­
hagen (South) [04] was due to the high level of refurbish-
ment, the fact that the area is not too far removed from
the city centre and the large amounts of green space be-
tween and around the buildings. The 3.0 per cent increase
in the median asking rent in 2015 was the highest in the
entire city.
LOW DEMAND IN AREAS OF PLATTENBAU
Situated in the northwest of Rostock, the area compris-
ing the districts of Groß Klein, Lichtenhagen, Lütten Klein,
Schmarl, and Evershagen (North) [03] is even more
strongly characterised by Plattenbau buildings. The me-
dian asking rent of €5.52 was far below that of the neigh-
bouring area, while the 0.5 per cent increase on the previ-
ous year was also significantly lower. There are practically
no high-value rental apartments. Even the most expensive
decile of asking rents started at €6.50 per square metre.
With more than 1,300 apartments, the area was also the
largest submarket researched in Rostock, which also had
a dampening effect on the figures.
The least expensive asking rents in Rostock in 2015 were
found by apartment-seekers in the east of the city in Ge-
hlsdorf, Toitenwinkel, Dierkow, and Rostock-Ost [02].
The median asking rent in 2015 stood at €5.11 while the
least expensive decile was below €4.40 per square me-
tre. Toitenwinkel, a major area of Plattenbau buildings, is
structurally almost isolated from the rest of the city. More
than 500 apartments have been demolished in the area
and surveyors recommended the removal of at least a fur-
ther 1,100 units in 2012. In contrast, Gehlsdorf is an attrac-
tive residential location on the banks of the River Warnow
that comprises predominantly small-scale development,
including in refurbished old villas. Rents on the new build
developed here in recent years are significantly higher
than those in Toitenwinkel.

TWO STRONG CENTRES OF GROWTH WITH CHALLENGING INTERMEDIATE AREAS

The seaside resort of Warnemünde, with its expansive beach and picturesque old houses, remains Rostock’s tourism-
driven hotspot in the market. The city centre also has good growth prospects, benefiting from attractive development
and infrastructure. Rostock is expected to see further robust development, with well-positioned and marketable new
builds likely to find takers and existing buildings offering further potential for rental growth. However, the large stock
from the inter-war and particularly the post-war decades are somewhat problematic. At that time, development in
Rostock was focused on quantity rather than quality. Today, these areas suffer from their monotony and the changing
preferences of more discerning apartment seekers. Rental growth is likely to be limited from current levels.

182
 CITY PROFILE n R O STO C K

aVeraGe asKinG renTs in CiTY areas 2015

Baltic Sea

06

02
03

04

01

05

Median in €/m²/month

5.11 – 5.37 5.38 – 5.89 5.90 – 6.82 6.83 – 7.00 7.01 – 7.19 7.20 – 8.13 8.14 – 8.92 8.93 – 9.63

183
CITY PROFILE n ST U T TG A RT
Stuttgart: Open-minded, diverse, tolerant
The state capital of Baden-Württemberg is notable for its altitude difference of almost 350 metres.
The attractiveness of the city and the limited availability of space create a strained housing market,
especially in the low-cost segment.
Stuttgart is the seat of the state government and the par-
liament, and thus the political centre of Baden-Württem-
berg. With a population of 612,441 (end of 2014), Stutt-
gart is characterised by its topography like almost no other
city. Its altitude ranges from 207 metres at the Neckar lock
at Hofen to 549 metres at the top of the Bernhartshöhe.
To overcome this height difference, there are more than
400 “Stäffele”, as the sets of steps are affectionately called.
The core city itself is located in the “Stuttgarter Kessel”, the
basin of Stuttgart, which limits the availability of building
land in terms of area, as well as ventilation.
MOBILE AND CREATIVE, FOCUS ON HIGH-TECH
Stuttgart’s economic strength is based on its wide variety
of sectors, strong exports, an impressive service indus-
try and innovation. The city is best known as a centre of
excellence for transport. Gottlieb Daimler invented the
first motor-driven vehicle here in 1886. Today, Daimler
employs nearly 18,000 personnel at its Stuttgart loca-
184
tion. Major companies in the automotive parts industry,
led by Robert Bosch, work in close cooperation with edu-
cational, scientific and research institutions in the area.
However, the city is also one of the primary locations in
the European aerospace industry. Around 80 per cent of
aerospace engineers in Germany are educated at the Uni-
versity of Stuttgart. The European centre of excellence
for mechanical and electrical engineering manufactures
state-of-the-art products in the areas of machine tools,
industrial lasers, high-performance electronics, medical
technology, and environmental technology. Stuttgart is
also an important German financial centre with the sec-
ond largest stock exchange in the country. The research
infrastructure of the state capital enjoys a leading posi-
tion nationwide, particularly in the areas of basic and ap-
plied research. Around 45 per cent of the research and
development capacity of the State of Baden-Württem-
berg is clustered here. Seven public and a range of private
universities are a rich source of highly skilled workers.
 CITY PROFILE n ST U T TG A RT

Stuttgart is a leader when it comes to exports. The export ratio in the city’s manu-
facturing sector stood at 78 per cent in 2014. By way of comparison, equivalent fig-
ures were 54 per cent for Baden-Württemberg and 46 per cent for all of Germany.

ATTRACTIVE CITY LIVING
The city is a highly dynamic business location and re-
quires an educated workforce. Insofar as demand can-
not be covered by the domestic workforce, recruitment
of foreign workers is set to continue. At the end of 2014,
the proportion of foreign residents stood at almost 24 per
cent. Although Stuttgart is the core city of the region, it
competes for residents, businesses and workers at re-
gional level with a total of 14 medium-sized centres. The
polycentricity of the region is not due to the suburban
densification processes of recent times but is rooted in
historical traditions. Despite heavy destruction during
the Second World War, Stuttgart’s city centre boasts nu-
merous historic buildings such as the Altes Schloss and

185
CITY PROFILE n ST U T TG A RT
Neues Schloss, the Königsbau, and the market hall, all
of which were faithfully reconstructed after the war. The
“Green U” in the city centre is a range of parks extend-
ing up to the Killesberg. Even though iconic districts and
a bustling club scene are normally associated with Ber-
lin, these can also be found in Swabian Stuttgart, such as
the quarter around Hans-im-Glück-Brunnen or the west-
ern part of Stuttgart. It is little wonder, then, that popula-
tion figures have been on the rise for years, including an
impressive 3.6 per cent increase from the end of 2011 to
the end of 2014. The cyclical high demand for labour in
the Stuttgart region and the economic and social situa-
tion specifically in southeastern Europe have resulted in
continued net migration from abroad. Accordingly, the
proportion of under-30s in Stuttgart is above-average by
nationwide comparison at around one third. Conversely,
the proportion of over-60s is relatively low at less than a
quarter of the population.
GROWING NUMBER OF HOUSEHOLDS DRIVES
DEMAND for housing
Forecasts predict that the Stuttgart population will grow
by 4.5 per cent between 2012 and 2030, while the num-
ber of households is set to increase by as much as 8.2 per
cent. City authorities are addressing future housing needs
by targeting 1,800 new residential units per annum, of
which 600 units will be subsidised housing. The total of
almost 1,700 housing completions in 2014 (in new resi-
dential and non-residential buildings including residen-
tial homes) fell just short of this target. The active market
vacancy rate in apartment buildings now stands at 1.0 per
cent (2014). Due to the constant high demand for hous-
ing, the trend towards urban living, and the fact that the
per capita living space consumption has been on the in-
crease for years, there is currently significant surplus
186
demand in certain sub-segments of the housing market.
Affordable housing in central locations is increasingly un-
der pressure. Furthermore, there is a shortage of smaller
apartments. Despite the primacy of internal development,
the “Wohnen in Stuttgart” (Living in Stuttgart) concept
was formulated to provide a quantitatively and qualita-
tively adequate housing supply, which entails the right to
develop waste and conversion land as well as increasing
density in existing quarters. The most extensive develop-
ment project of the city, which is well-known throughout
Germany, is the “Stuttgart 21” programme. In addition to
the re-organisation of the Stuttgart rail node, the project
will create a vast tract of land for the development of sev-
eral thousand of new apartments in the Stuttgart basin, a
place of special significance for the city in terms of urban
development. The promotion of social housing will be fos-
tered by way of the city development model “Stuttgarter
Innenentwicklungsmodell” (SIM). This provides for 20 per
cent of the floor area of newly built residential buildings
to be allocated to subsidised housing. In addition, urban
sites are to be tendered with greater emphasis on the
conceptual tender process. This will assign a weighting of
30 per cent to the purchase price and 70 per cent to the
concept quality. The Mietpreisbremse (capping of rents
on re-letting) was also introduced for new lettings of ex-
isting apartments in Stuttgart on 1 November 2015.
 CITY PROFILE n ST U T TG A RT

DISTRIBUTION OF ASKING RENTS IN StUTTGART 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

4.1 3.3 19.0 13.8 35.0 34.1 23.3 25.5 11.5 15.3 7.0 8.1
40%

30%

20%

10%

0%

under €7.00 €7.00 to €8.99 €9.00 to €10.99 €11.00 to €12.99 €13.00 to €14.99 €15.00 and over

Almost 60 per cent of asking rents range from €9.00 to €12.99 per square metre.
However, the inexpensive segment accounts for just 17 per cent of listings, which
is lower than the high-priced segment (approx. 23 per cent).

The median exclusive asking rent in the Baden-Württem-
berg state capital rose from €10.47 per square metre in
2014 to €10.91 in 2015. The most expensive asking rent of
€13.44 per square metre was witnessed in the area com-
prising Am Bismarckturm, Lenzhalde, An der Burg, and
Killesberg [01]. The area is located halfway up a hillside
with views across the city and predominantly small-scale
development and is regarded as one of the finest residen-
tial areas of the city. Stuttgart’s largest development area,
the Killesberghöhe, is also located here on the site of a
former exhibition centre. Indeed, several hundred rental
apartments and condominiums have already been com-
pleted here in recent years. However, the supply of rental
apartments in the area in 2015 was somewhat limited on
the whole.
In 17 of the 21 districts in Stuttgart studied, the median ex-
clusive asking rent in 2015 was at least €10.00 per square
metre. In 2012, this was only true of 12 districts. Afford-

Key Figures for the housing market

Stuttgart Baden-Württemberg Germany

Average asking rent 2015 in €/m²/month 10.91 7.82 6.51

Average size of apartments on offer 2015 in m² 74.0 75.0 68.0
Vacancy rate in apartment buildings 2014 in % 1.0 1.8 3.0
Newly finished apartments1) per 1,000 residents 2014 2.8 3.1 2.7
Of which are in apartment buildings 2)
2.4 1.6 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

187
CITY PROFILE n ST U T TG A RT

Asking Rents in stuttgart 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ] Am Bismarckturm, Lenzhalde, An der Burg, Killesberg 78 107.0 13.44

[ 02 ] Auf der Prag, Weißenhof 126 65.0 13.03
[ 03 ] Berg, Stöckach, Ostheim, Uhlandshöhe, East, Gablenberg 294 67.8 11.05
[ 04 ]
Botnang 66 78.5 10.52
[ 05 ] Degerloch, Sonnenberg, Hoffeld, Haigst 173 75.0 11.00
[ 06 ] Feuerbach, Hohe Warte 210 74.0 11.26
[ 07 ] Hasenberg, Rotebühl, Heslach 179 65.0 11.43
[ 08 ] Heusteigviertel (North), Oberer Schlossgarten, Dobel, Diemershalde 248 90.0 12.21
[ 09 ] Heusteigviertel (South), Lehen, Weinsteige 110 89.5 12.03
[ 10 ] Mitte, City Hall, Karlshöhe 339 84.4 13.41
[ 11 ] Möhringen, Sternhäule, Fasanenhof East 154 78.0 10.68
[ 12 ] Münster, Hallschlag, Burgholzhof, Birkenäcker, Altenburg 126 75.0 10.00
[ 13 ] Neue Vorstadt, Relenberg, Rosenberg, Feuersee 275 75.0 12.61
[ 14 ] Plieningen, Birkach, Steckfeld, Schönb., Sillenb., Heumaden, Riedenb. 345 74.0 10.28
[ 15 ] Stammheim, Zuffenhausen, Neuwirtshaus 229 66.0 9.95
[ 16 ] Untertürkh., Wangen, Uhlbach, Obertürkh., Hedelfingen, Rohracker 270 65.0 9.76
[ 17 ] Vaihingen, Heerstraße, Höhenrand, Dachswald, Kaltental, Büsnau 213 68.0 11.11
[ 18 ] Veielbrunnen, Kurpark, Winterhalde, Im Geiger, Espan, Sommerrain 281 70.0 10.19
[ 19 ] Wallgraben, Dürrlewang, Rohr, Fasanenhof 161 71.2 10.14
[ 20 ] Weilimdorf, Bergheim, Hausen, Giebel 133 79.0 9.72
[ 21 ] Zazenh., Freiberg, Rot, Mühlh., Mönchfeld, Hofen, Steinhaldenfeld 136 69.8 9.52
Stuttgart average 4,146 74.0 10.91

able apartments were available at the northern city lim- With an average of €9.72 per square metre, asking rents
its. In the area comprising Zazenhausen, Freiberg, Rot, in Weilimdorf, Bergheim, Hausen, and Giebel [20] were
Mühlhausen, Mönchfeld, Hofen, and Steinhaldenfeld [21], also below the citywide average in 2015.
which are dominated by both multi-storey and frag-
mented development and less exclusive housing, the me-
dian asking rent in 2015 stood at €9.52 per square metre.

STUTTGART IS A VIBRANT METROPOLIS WITH STRONG ECONOMIC GROWTH AND INNOVATION

Stuttgart is the seat of the state government and the parliament, and thus the political centre of Baden-Württem-
berg. The notable features of the city include its topography and the polycentricity of the surrounding region. The
city is particularly renowned for its automotive sector. However, its economic strength is based on a wide variety of
sectors, an impressive service industry and innovative prowess. The growing population figures are due to net migra-
tion as well as the birth rate exceeding the death rate, while growth in the number of households is also expected to
be above average going forward. There is significant surplus demand in the housing market, particularly for inexpen-
sive housing and small apartments. Despite the already high levels, asking rents continue to rise, which can be partly
absorbed by the high purchasing power.

188
 CITY PROFILE n ST U T TG A RT

aVeraGe asKinG renTs in CiTY areas 2015

21
15

12

20 06 18

02
01

03
13
04
10 16

07 08
09

17 05

11 14

19

Median in €/m²/month

9.52 – 9.85 9.86 – 10.14 10.15 – 10.40 10.41 – 11.00 11.01 – 11.19 11.20 – 12.03 12.04 – 12.82 12.83 – 13.44

189
CITY PROFILE n WIESBADEN

Wiesbaden: Elegant spa city and ambitious

service centre
The Hessian state capital has evolved from a fashionable health resort into an international
administrative and service centre. Increasing demand for housing, particularly in the villa and
Wilhelminian-period districts, is not being met with sufficient supply.

Wiesbaden is one of Europe’s oldest spa towns. The “Nice
of the North” enjoyed its heyday in the 19th century, when
the city became a playground of high society, where nobil-
ity and bourgeoisie gathered for entertainment and recu-
peration. The stays of the German Emperor Wilhelm I and
Wilhelm II, in whose favour Wiesbaden became the meet-
ing place of the nobility, arts, and politics, drew crowds to
the area. Since Wiesbaden suffered little structural dam-
age in the Second World War, the historical building stock
largely survived. The original functional areas of the spa
town remain visible. The Quellenviertel area features the
old bath houses, now operated as hotels. The Kurhaus
boasts the casino that received a literary memorial in the
Dostoyevsky novel “The Gambler”, but it is also the venue
of balls and large festivals. Wiesbaden’s reputation as a
world spa city is also attributable to a number of presti­
gious public buildings and extensive landscaped grounds
in the city centre. The two urban expansion zones, Berg-
kirchenviertel and Inneres Westend, reflect the structure
of the historic working-class district with its characteris-
tic courtyards and workshops still largely intact. The urban
expansion zone Ringkirchenviertel remains the preferred
residential area of the upper middle class. The heritage-
protected overall structure of Wiesbaden is one of the
most extensive heritage areas in Germany. The mainte-
nance and preservation of the historic building stock has
played a significant role in the city’s urban development
for decades. In summer 2012, the City submitted an ap-
plication to become a UNESCO World Heritage Site as the
“stage of high society and culture in the 19th century”.

190
 CITY PROFILE n WIESBADEN

The new European headquarters of the US army is being developed in

Wiesbaden over the next few years. By 2016, the site is expected to be used by
almost 20,000 people.

SERVICES AND SECTORS
Wiesbaden’s 275,116 inhabitants (at the end of 2014)
make it the second largest city in Hesse. The city is well
connected by road, rail and the Rhine and Main riv-
ers. Frankfurt International Airport is around 25 kilome-
tres away. There is a wide variety of study options at the
RheinMain University of Applied Sciences, the European
Business School and the Hessian University of Police and
Administration. The economy of Wiesbaden is charac-
terised by a broad mix of sectors, ranging from service
companies, high-tech companies, IT companies and a vi-
brant creative industry to the manufacturing industries.
More than 80 per cent of employees are employed by
service companies, including many government agen-

191
CITY PROFILE n WIESBADEN
cies, as well as key federal authorities such as the Federal
Statistical Office and the Federal Criminal Police Office.
Financial and insurance companies also play a significant
part in the services sector. These benefit from the prox-
imity of Wiesbaden to the financial metropolis of Frank-
furt and the European Central Bank (ECB), which is based
there. Another pillar of economic growth in Wiesbaden is
the consulting industry with a variety of consulting firms
and independent consultants. As a health location, the
spa town boasts renowned rehabilitation facilities and a
dense network of clinics. Wiesbaden is home to numer-
ous world market leaders as well as the European and
German headquarters of many international companies.
The German subsidiary of US pharmaceutical company
Abbott also has its head office in the state capital. Wies-
baden is also home to the headquarters of the American
armed forces in Europe.
STRONG NET MIGRATION AMONG YOUNG PEOPLE
The population of Wiesbaden is expected to grow by
6.6 per cent between 2012 and 2030, while the num-
ber of households is projected to increase by as much
as 10.4 per cent. These forecasts are significantly more
positive than those for neighbouring Frankfurt, although
the 60-plus age group is less strongly represented in
Frankfurt than in Wiesbaden. The 2011 census for Wies-
baden recorded 40,180 buildings with living space and
142,536 homes. More than a third of these buildings are
apartment buildings, which contain some 79.6 per cent
of all residential units. The active market vacancy rate in
apartment buildings stood at 2.0 per cent (2014), which
192
was higher than in neighbouring Frankfurt and Mainz. The
building stock in Wiesbaden primarily dates from the
period after the Second World War. The largest propor-
tion of 44 per cent was constructed in the years from
1949 to 1978. Only 6.4 per cent of the housing stock was
built after the turn of the millennium. Some 18.5 per cent
of buildings were built before 1919, while 11 per cent date
back to the period from 1919 to 1948. There are signifi-
cant local variations in terms of the age of building stock.
The oldest buildings are found in the districts of West-
end and Bleichstraße and the city centre, where more
than 70 per cent of buildings with living space were built
before 1949. However, the proportion of old buildings in
Kostheim, Rambach, and Biebrich is also well above av-
erage for Wiesbaden. Mainz-Amöneburg, Auringen, and
Schierstein have a high proportion of new build (built after
2001). The district of Rheingauviertel/Hollerborn, close
to the city centre, enjoys something of a special posi-
tion thanks to the two conversion areas Europaviertel and
Künstlerviertel that were developed for residential pur-
poses. Some 550 new residential units were completed in
Wiesbaden in 2014, which was in line with the previous
year. Almost half of the new units were condominiums
and the majority were in apartment buildings.
ASKING RENTS ACROSS THE CITY ON THE INCREASE
The median exclusive asking rent in Wiesbaden has risen
from €8.81 to €9.24 per square metre over the last three
years. In 2015, the median asking rent rose by at least
2.0 per cent compared with the previous year in four of
the nine city districts studied. The highest median rents
of €10.69 were quoted in the traditionally expensive area
comprising Sonnenberg and Nordost [08]. Sonnenberg
is located to the northeast of the city centre, with exten-
sive villa districts along the slopes of the valley from the
 CITY PROFILE n WIESBADEN

DISTRIBUTION OF ASKING RENTS IN WIESBADEN 2014 AND 2015

Proportion of offers at the respective rent price in €/m2/month
2014 2015

1.0 0.7 19.5 16.4 46.8 48.4 21.8 24.8 7.1 6.8 3.7 2.9
50%

40%

30%

20%

10%

0%

under €6.00 €6.00 to €7.99 €8.00 to €9.99 €10.00 to €11.99 €12.00 to €13.99 €14.00 and over

Almost two thirds of asking rents are in the range from €8.00 to €11.99 per square
metre, with a clear emphasis on the segment below €9.99. The proportion of high-
priced rents starting from €12.00 fell moderately compared with 2014.

late 19th century. Wiesbaden-Nordost is dominated by
the spa area with its spacious park landscapes. A large,
contiguous area of Wilhelminian-era villa development is
immersed in green spaces. Apartment buildings comple-
ment the building stocks towards the city centre. The me-
dian exclusive asking rent of €10.00 per square metre for
the area comprising Südost and Bierstadt [09], which in-
cludes the Dichterviertel area in the west and the Hous-
ing Area Hainerberg of the US armed forces in the east,
also places these districts in the high-priced segment. The
development is highly heterogeneous, including the villa
areas around Bierstadter Straße and Frankfurt Straße and
the largely Art Nouveau-period “Dichterviertel” as well as
supermarkets, offices and administrative buildings.
The most affordable median exclusive asking rent of
€8.62 per square metre was found in the area compris-
ing Mainz-Kostheim and Mainz-Kastel [06] adjacent to

Key Figures for the housing market

Wiesbaden Hesse Germany

Average asking rent 2015 in €/m²/month 9.24 8.18 6.51

Average size of apartments on offer 2015 in m² 73.0 74.8 68.0
Vacancy rate in apartment buildings 2014 in % 2.0 2.1 3.0
Newly finished apartments1) per 1,000 residents 2014 2.0 2.5 2.7
Of which are in apartment buildings 2)
1.8 1.5 1.3

1) in residential and non-residential buildings, excluding renovations, incl. halls of residence, subject to available data 2) incl. halls of residence, subject to available data
Sources for graphics and tables: CBRE based on data from empirica-systeme, CBRE-empirica vacancy index, State Statistical Offices, Municipal Statistical Offices,
Federal Statistical Office, Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), Michael Bauer Research, Federal Employment Agency

193
CITY PROFILE n WIESBADEN

Asking Rents in wiesbaden 2015

City area Number of Apartment size, Median rent excl. utili-
rental offers average in m2 ties, in €/m2/month

[ 01 ] Biebrich, Mainz-Amöneburg, Südost (West) 624 70.0 9.31

[ 02 ] Breckenheim, Medenbach, Auringen, Naurod, Heßloch, 241 80.0 8.81
Kloppenheim, Igstadt, Rambach
[ 03 ] Dotzheim, Frauenstein, Schierstein 322 71.1 9.26
[ 04 ] Erbenheim, Delkenheim, Nordenstadt 226 73.8 8.83
[ 05 ] Klarenthal, Rheingauviertel, Westend 903 70.0 9.00
[ 06 ] Mainz-Kostheim, Mainz-Kastel 246 67.5 8.62
[ 07 ]
Mitte 956 72.5 9.02
[ 08 ] Sonnenberg, Nordost 341 84.0 10.69
[ 09 ] Südost, Bierstadt 592 79.6 10.00
Wiesbaden average 4,451 73.0 9.24

the Rhine in the south of the city and some 10 kilometres
from the city centre. Both city districts have undergone
improvements since 2005 as part of the “Stadtumbau in
Hessen” (Urban Renewal in Hesse) subsidy programme.
They are also among the six city district of Mainz on the
right bank of the Rhine “administered in trust” by the City
of Wiesbaden since the Second World War. In mid-No-
vember 2015, the State of Hesse introduced the Miet­
preis­bremse (capping of rents on re-letting) in Wiesbaden,
excluding the districts of Igstadt, Medenbach, and Naurod.
Larger housing projects are planned over the coming years
on sites including the former Linde AG refrigeration plant
on the banks of the Rhine at Mainz-Kostheim, in Mainz-
Amöneburg, where a new district will be developed on the
old staff car park of building materials manufacturer Dy-
ckerhoff, and on city-owned land, as well as on the former
Söhnlein sparkling wine site in Schierstein, a site formerly
used by Deutsche Post on Welfenstraße, in the “Wohnge-
biet Hainweg” residential area in Nordenstadt, and on a
former plant nursery area in the Biebrich district. Addi-
tional potential sites will be created via the closure of the
US Army facilities at Mainz Kastel-Station by 2022 and
Amelia Earhart Hotel by 2023.

WIESBADEN IS SETTING TRENDS in PRESERVATION AND INTERNATIONAL SERVICE sector

The Hessian state capital Wiesbaden is one of Europe’s oldest spa towns. The heritage-protected overall struc-
ture of the city is one of the most extensive heritage areas in Germany. Wiesbaden’s 275,116 inhabitants make it the
second-largest city in Hesse. The city is well connected by road, rail, Frankfurt am Main international airport and
the Rhine and Main rivers. The economy of Wiesbaden is characterised by a broad mix of sectors, ranging from ser-
vice companies, high-tech companies, IT companies, and a vibrant creative industry to the manufacturing indus-
tries. There is significant net migration to the city among young people. Median exclusive asking rents rose further
in each of the last two years in most districts of Wiesbaden.

194
 CITY PROFILE n WIESBADEN

aVeraGe asKinG renTs in CiTY areas 2015

05 08 02

03 07 09

04

01

06

Median in €/m²/month

8.62 – 8.81 8.82 – 8.83 8.84 – 9.00 9.01 – 9.02 9.03 – 9.26 9.27 – 9.31 9.32 – 10.00 10.01 – 10.69

195
O U T LO O K

The German residential property market

going forward

The large influx of refugees will remain an issue in Ger- CITIES AS DRIVERS OF GROWTH
many for a number of years. The situation in global crisis The refugee issue is just one factor that will bolster the im-
zones remains serious and could become even more acute portance of cities as places to live and economic centres
in future, causing the large refugee flows to grow further. going forward. Cities will also be attractive to migrants
Housing markets in many towns and cities will continue from elsewhere in Germany and abroad owing to their con-
to be faced with significant challenges. Sustainable con- centration of places of work and education as well as cul-
cepts that cover all eventualities are required to overcome tural and social amenities. Major cities in particular will
these challenges and shift the focus onto the opportuni- become anchor points of population settlement and hubs
ties of immigration for Germany. The current distribution for social trends. Thus, cities will become growth drivers
of asylum-seekers in accordance with the Königstein for- for the regions. The particular beneficiaries will, on the one
mula, for example, neither takes account of the availabil- hand, be those municipalities that successfully structure
ity of housing nor the social structures of refugees. One the demographic changes and best mitigate their negative
concept to tackle this was provided by the empirica insti- effects. On the other hand, it is essential for cities to offer
tute in its paper “Familien aufs Land – Teil 2” (Families in attractive conditions as a location, both for employers and
the Country – Part 2). The paper fundamentally proposes employees. This also requires a multi-faceted approach.
that, when distributing refugees, family structures must Research and educational institutions play an important
be taken into account and more rural regions of Germany part, as do the availability of a workforce, the city’s infra-
must also benefit from the influx. structure, and an attractive housing supply as well as soft
location factors, such as a cultural offerings and leisure
However, the solutions discussed at present are somewhat amenities, all of which can be integral to the recruitment
static. A lowering of restrictions in planning and building of highly qualified personnel.
law should enable residential building projects to be com-
pleted more quickly. The German parliament passed the
“Law on measures in construction planning law to facilitate
the accommodation of refugees” in 2014. The law allows
exemptions from stipulations in existing development
plans to be granted more easily for the construction of
such accommodation, for example. Yet despite all efforts
to achieve closer connections between refugee families in
contracting regions, the construction of new apartments
in growing cities will be unavoidable. However, in the
short term, extensive promotion of new housing construc-
tion will not be able to make a major contribution towards
housing provision or the integration of refugees. Even if
planning permissions are currently being granted very ef-
ficiently, as city administrations claim, the construction
sector is working at close to full capacity, meaning that
the potential for expansion is limited. Furthermore, there
is insufficient building land available.

196

TENANCY LAW AMENDMENTS – FURTHER
REgulations?
The city states of Berlin, Bremen, and Hamburg were
joined by more than 260 local authorities in the federal
states of Baden-Württemberg, Bavaria, Hesse, North
Rhine-Westphalia, Rhineland-Palatinate, and Schleswig-
Holstein in introducing the Mietpreisbremse (capping of
rents on re-letting) by the end of 2015. However, accord-
ing to CBRE research, neither Bremen nor 207 of these lo-
cal authorities have either a simple or qualified rent index.
Thus, there is a lack of transparency in many municipalities
as to the basis on which the local comparable rent for new
lettings is determined. Determining this using a number of
comparable residential lettings is difficult without a rental
survey. Introducing the Mietpreisbremse without amend-
ing the rent index classification makes it difficult to struc-
ture rents. The variation in court determinations to date
regarding the question “Is the rent index created using sci-
entific criteria and at all permissible as a basis for the local
comparable rent?” is creating additional frustration.
The German Ministry of Justice has recently announced
a second package of reforms to amend tenancy law in
respect of the tenancy legislation already enacted. The
reforms will reduce the modernisation apportionment,
which allows modernisation costs to be apportioned to
the tenant, from 11 per cent to 8 per cent. A number of ad-
ditional regulations relating to rental increases follow-
ing modernisation works complete the proposals. How-
ever, there is little in the draft legislation regarding the
announced amendment of the rent index classification.
The planned expansion of the rent index consideration pe-
riod from four to 10 years does not resolve the afore-men-
tioned ambiguities arising from the Mietpreisbremse and
judgements to date.
RESIDENTIAL INVESTMENT MARKET
The investment market appears unfazed by the increas-
ing regulation of the rental housing market. In the attrac-
tive regional residential markets with relatively high rent
and property price growth, housing completions cannot
keep pace with the increase in the number of households.
Vacancy rates are also at historic lows. At the same time,
the economy is better than it has been in years. Unem-
ployment figures are low and falling further, numbers of
employees subject to social security contributions are at
record levels and purchasing power is increasing thanks to
expanding sectors of the economy.
197
O U T LO O K
Against a background of continuously high demand from
institutional investors for apartment buildings in the ma-
jor conurbations and strong price growth on core prop-
erty, purchase price multipliers on non-core properties in
the top markets have also risen by a factor of one to three
times the annual rent. In addition, institutional investors
are showing an increasing trend towards investing in high-
growth, medium-sized centres in northern and eastern
Germany, such as Bruns­wick, Leipzig and Magdeburg. In
addition to opportunistic investors, such B and C locations
are also witnessing growing interest from long-term prop-
erty investors, increasing the competition in these mar-
kets. In the residential markets with weaker socio-demo-
graphic and economic conditions, there is no significant
further growth in property prices.
Private owner-occupiers and investors are using the low
interest rate environment to build long-term investments.
Despite hardening yields, German residential property is
currently performing better in terms of risk-return compar-
ison than alternative investment products. Compared with
Anglo-American markets, short-term property trading is
not a factor, at least among private investors in Germany.
With regard to institutional investors, in view of the me-
dium-term, ultra-expansionary interest rate policy of the
ECB, the historically low cost of financing and returns of
less than 1 per cent on low-risk alternative investments in
the form of long-term government bonds, demand for res-
idential portfolios will remain consistently high in 2016 de-
spite the Mietpreisbremse and will significantly exceed
the supply of product appropriate for the market. In the
apartment buildings segment, divisibility into owner-oc-
cupier property and comparison with reinstatement costs
are becoming increasingly important in terms of pricing.
Development projects are also even higher on the agendas
of institutional investors than previously. It is, therefore,
essential to observe rental and price trends on a small
scale and based upon qualitative factors.
G LO S S A RY
Glossary and directory of sources
Active market vacancy rate:
The active market vacancy rate comprises vacant apart-
ments in apartment buildings that are immediately avail-
able as well as vacant apartments not currently available
to let owing to defects but that might be capable of letting
in the medium term (<6 months).
Asking rent:
The asking rent represents the net exclusive rent quoted
on apartments currently on the market. This means apart-
ments that are available to let on the open market (e.g. on
property portals, web sites and in print media) and not
completed lettings.
Employees subject to statutory social
security contributions:
Information is based on local data on employees subject to
social security contributions.
Housing completions and permits:
Unless otherwise noted, details refer to completions and
permits for residential and non-residential constructions
not including existing buildings under renovation.
Median:
The value dividing a sample into two equal sets of values
with 50 per cent each of the sample being below and
above the median.
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Net migration:
Net migration represents the difference between incoming
and outgoing migration across the boundaries of a specific
area within a defined time frame.
“Number of rooms” as referred to
in the Census:
The definition includes all living, dining, and bedrooms
as well as other separate rooms (e.g. developed basement
and attic rooms) with floor spaces of at least 6 square me-
tre as well as separate kitchens regardless of floor space.
Bathrooms, toilets, corridors, and utility rooms are never
included. A living room with dining area, sleeping corner,
or kitchenette is considered to be one room. Therefore,
apartments without constructional separations of individ-
ual living areas (e.g. lofts or studios) have only one room.
Purchasing power:
Purchasing power is defined as the net income (includ-
ing recurring state benefits and assistance) of a person
or household that is available for consumption purposes
within a specific time frame.
Unemployment rate:
Details are based on the unemployment rate among
the entire civilian labour force.

Bavarian State Office for Statistics and Data Processing
Berlin Tourismus & Kongress GmbH
Braunschweig Zukunft GmbH
CBRE-empirica-vacancy index
Census 2011 – Building- and Housing Census
City of Augsburg – Department for Statistics and Urban Studies
City of Brunswick – Department for Urban Development and Statistics
City of Chemnitz – Office for Data Processing
City of Cologne – Office for Urban Development and Statistics
City of Dortmund – Business Development
City of Dortmund – Administrative Department for Statistics
City of Duisburg – Administrative Department for Elections,
European Affairs and Information Logistics
City of Essen – Office of Statistics, Urban Research and Elections
City of Frankfurt – Citizen Center, Office of Statistics and Elections
City of Frankfurt – Office of Housing
City of Frankfurt – Office for Urban Planning
City of Frankfurt – Press and Information Office
City of Freiburg – Office for Citizens’ Service and Data Processing
City of Freiburg – Office for Urban Planning
City of Freiburg – Office for Public Relations and Press
City of Halle – Department for Statistics and Elections
City of Halle – Department for Planning
City of Halle – Department for Residence Notices
City of Karlsruhe – Department for Urban Development
City of Leipzig – Office for Statistics and Elections
City of Mannheim – Municipal Statistics Office
City of Mannheim – Department IV, Planning, Building, Traffic and Sport
City of Mannheim – Office for Conversion
City of Nuremberg – Office of Urban Research and Statistics for
Nuremberg and Fürth
City of Nuremberg – Department for Economic Affairs
City of Nuremberg – Department for Building and Planning
City of Rostock – Integrated urban development concept (2nd Update)
Cologne Chamber of Commerce and Industry
Deutsche Messe
Economic Development Corporation, City of Chemnitz
Erfurt Tourism & Marketing Board
Essen Economic Development Agency
Federal Employment Agency
Federal Institute for Research on Building, Urban Affairs and
Spatial Development (BBSR)
Federal Ministry for the Environment, Nature Conservation,
Building and Nuclear Safety
Federal Statistical Office
Free and Hanseatic City of Hamburg, State Ministry for Urban
Development and the Environment
Freiburg Wirtschaft Touristik und Messe GmbH
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SOURCES
Hamburg Airport GmbH
Hanover Region, economic and employment policy
Hanseatic city of Lübeck – Department for Logistics, Statistics
and Elections
Hanseatic city of Rostock – Municipal office
Hanseatic city of Rostock – Office for Building, Department for Building
and Housing
Housing association “Freiheit” eG Halle
Institute for urban development, housing industry and building society
Market database of empirica-systeme
Michael Bauer Research GmbH
Northern Statistics Office
Senate Administration for Education, Science and Research, Berlin
Senate Administration for Urban Development and Environment, Berlin
Soziale Stadt und Land Entwicklungsgesellschaft mbH
State capital Dresden – Department for Urban Development
State capital Dresden – Economic Development Office
State capital Dresden – Municipal Statistics Office
State capital Düsseldorf – Office for Statistics and Elections
State capital Erfurt – Department for Personnel and Organization,
Statistics and Elections
State capital Hanover – Authority of the mayor
State capital Hanover – Business Development
State capital Hanover – Department for Personnel and Organization
State capital Hanover – Department for Building
State capital Hanover – Office for Culture
State capital Kiel – Office for Economy
State capital Kiel – Citizen Center, Office for Public Order
State capital Magdeburg – Statistics Office
State capital Mainz – Department for Urban Development,
Statistics and Elections
State capital Mainz – Press Office, Communication
State capital Munich – Department of Urban Planning and
Building Regulation
State capital Munich – Department of Labour and Economic
State capital Munich – Statistics Office
State capital Stuttgart – Statistics Office
State capital Wiesbaden – Office of Strategic Governance,
City Research and Statistics
State capital Wiesbaden – Press Office
Statistics Office for Berlin-Brandenburg
Statistics Office of Baden-Württemberg
Statistics Office of Bremen
Statistics Office of Lower Saxony
Statistics Office of Saxony-Anhalt
Statistics Office of Saxony
WFB Bremen Business Development
M A ST H E A D

Masthead
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Vonovia SE
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Tel.: +49 (0) 234 314-0
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CBRE GmbH
Hausvogteiplatz 10, 10117 Berlin
Tel.: +49 (0) 30 726154-0
Fax: +49 (0) 30 726154-100

Market data:
Dr. Henrik Baumunk, Kristina Rüther, Michael Schlatterer MRICS
Residential Valuation, CBRE GmbH

editorial department:
Gabriele Bobka, Roland Stimpel

Graphics/Layout:
Storkan Informationsdesign

Project management:
Kristina Rüther, CBRE GmbH

responsible under german press law:

Dr. Henrik Baumunk, CBRE GmbH
Inger Giwer-Gaul, Vonovia SE

Disclaimer Vonovia/CBRE
Information herein has been obtained from sources which are accessible to the public,
(or, in certain cases, in exchange for a fee) and believed reliable. While we do not doubt its
accuracy, we have not verified each piece of information and cannot make any guarantees
about it, barring willful intent and gross negligence. It is your responsibility to independently
confirm its accuracy and completeness.

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without prior written permission of Vonovia and CBRE.

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