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.
Real Estate

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.
German Economic Institute (IW)

How Berlin’s “Socialization” Policy Is Harming Germany as a Business Hub
Berlin's plans to socialise private housing companies under Article 15 of the Basic Law are far more than a local political experiment.
Michael Voigtländer / Philipp Deschermeier IW

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).
Pekka Sagner / Michael Voigtländer IW

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
![[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)
Rental development in (inner) city retail 2018-2025
The present report analyses the development of retail rents on the basis of listing data, using a hedonic pricing model.
Christian Oberst / Michael Voigtländer IW
Our Experts

Dr. Christian Oberst
Senior Economist for Real Estate Markets and Regional Economics
Tel: +49 221 4981-889 Mail: oberst
Dr. Pekka Sagner
Economist for Housing Policy and Real Estate Economics
Tel: +49 221 4981-881 Mail: sagner
Prof. Dr. Michael Voigtländer
Head of International Economic Policy, Financial and Real Estate Markets Research Unit
Tel: +49 221 4981-741 Mail: voigtlaender
Laurens Wünsch
Economist for financial and real estate markets
Tel: +49 221 4981-429 Mail: WuenschAll news
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