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.
About the topic
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.
IW-Report No. 24 12. May 2026 Pekka Sagner / Michael Voigtländer
Migration and Housing: Economic Effects and Social Implications
This report examines the interplay between migration and Germany’s housing market, combining a stock-taking of key market trends with an empirical assessment of representative household data (SOEP).
IW-Trends No. 1 28. March 2026 Philipp Deschermeier / Pekka Sagner / Michael Voigtländer
Employee Housing in Germany – Growing in Importance but Faced with Persistent Obstacles
Based on a company survey conducted with the German Economic Institute’s IW Personnel Panel, this study examines the role of employee accommodation in combatting Germany’s current shortage of skilled workers and its tight housing markets.
Philipp Deschermeier / Pekka Sagner / Michael Voigtländer IW
The German Economic Institute (IW) and Frontier Economics are pleased to invite you to a rapporteur & stakeholder workshop on the Industrial Accelerator Act (IAA) in Brussels.
Universal entitlement, unequal provision: childcare in segregated German cities
Matthias Diermeier / Jan Engler* / Melinda Fremerey / Leon Wansleben* in Journal of Social Policy
One mechanism driving persistent inequalities in childcare provision, despite rising investments and a substantial expansion of childcare facilities, may consist in the locational choices of providers, who eschew poorer neighbourhoods.
A Comparison of Public Revenues Across the Federal States
Björn Kauder
To ensure equivalent living conditions, the federal government influences the revenues of the states and municipalities. Under the fiscal equalization system, financially weak states receive surpluses in the distribution of sales tax revenues, while financially strong states must accept shortfalls.
German Foreign Investment and the debate over Germany as a business location
Samina Sultan / Jürgen Matthes
Geopolitical pressure and the debate over Germany’s competitiveness make it necessary to develop a more precise understanding of German foreign direct investment. This report provides a comprehensive empirical analysis and also examines the implications for Germany as a business location.
Event
28. September 2026
Sandra Parthie / Alexander Radunz
Online-Veranstaltungsreihe „Von Brüssel nach Berlin”: Regionalentwicklung und Industriepolitik
Wir laden Sie herzlich zu einer weiteren Online-Veranstaltung unserer Veranstaltungsreihe „Von Brüssel nach Berlin“ ein. Mit ihr wollen wir in loser Folge Themen aus der europäischen in die deutsche Hauptstadt tragen.
Making Apprenticeships a Success: From Marketing to Hiring
Paula Risius / Dirk Werner / Philip Herzer / Fritz Orange / Regina Flake / Franziska Arndt / Yasin Küçükyavuz / Edgar Schmitz
In-company vocational training is a key factor in securing skilled labour. The first step in investing in future employees is to approach and recruit new apprentices. For many companies, filling the apprenticeship positions they offer is a challenge.
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German Economic Institute (IW) 
![[Translate to English:] Mehrstöckiges Einkaufszentrum in einer Shopping Mall.](/fileadmin/_processed_/b/b/csm_Einzelhandelsimmobilie-GettyImages-157694076-creative_9e53ec6bc0.jpg "[Translate to English:] Mehrstöckiges Einkaufszentrum in einer Shopping Mall.")
![[Translate to English:] Mehrstöckiges Einkaufszentrum in einer Shopping Mall.](/fileadmin/_processed_/b/b/csm_Einzelhandelsimmobilie-GettyImages-157694076-creative_404324693a.jpg "[Translate to English:] Mehrstöckiges Einkaufszentrum in einer Shopping Mall.")
