Picture: iStock

Real Estate Markets

Picture: iStock

Around half of Germany's private assets are invested in real estate. The business with offices, houses and apartments has an impact on the economy as a whole. The real estate markets are also interesting for investors who are looking for safe investments in times of low interest rates.

For many, building or buying their own home is the biggest investment of their lives. The need for information is correspondingly high. Many are asking themselves whether they should rather rent or buy and whether buying real estate in the big cities is still worthwhile. The Institute of the German Economy also closely examines the price development of real estate on the basis of various studies. For example, the IW Real Estate Index, the Home Ownership Report or the Student Housing Report regularly provide a detailed insight into various areas and aspects of the real estate market in Germany.

Housing policy is also analyzed in detail: Can instruments such as the rent brake or the rent cap achieve their intended goals? What are the side effects, and above all, are there better alternatives?

But real estate also plays a significant role in the fight against climate change. Buildings produce more than one-third of carbon dioxide emissions. Because modern houses require only a fraction of the energy of older buildings, energy-efficient renovation would make sense in many cases. But this costs money and only pays off after decades - possibly not in the lifetime of many investors, because more than half of German homeowners are over 60 years old. Politicians have recognized that owners need support.

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Authors
Content Type
Ralph Henger

Dr. Ralph Henger

Senior Economist for Housing Policy and Real Estate Economics

Tel+49 221 4981-744

Mailhenger@iwkoeln.de

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Christian Oberst

Dr. Christian Oberst

Senior Economist for Housing Policy and Real Estate Economics

Tel+49 221 4981-889

Mailoberst@iwkoeln.de

@17ChOb

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Pekka Sagner

Pekka Sagner

Economist for Housing Policy and Real Estate Economics

Tel+49 221 4981-881

Mailsagner@iwkoeln.de

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Florian Schuster

Florian Schuster

Consultant for building land survey 2020

Mailschuster@iwkoeln.de

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Michael Voigtländer

Prof. Dr. Michael Voigtländer

Head of the Research Unit Financial and Real Estate Markets

Tel+49 221 4981-741

Mailvoigtlaender@iwkoeln.de

@mvoigtlaender

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