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.
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.
GTIPA Perspectives: Making AI Policy to Drive Innovation
Vera Demary
Germany’s federal structure leads to a diverse landscape of AI policies across the country. While
the EU AI Act establishes a general framework for AI policy throughout the continent, Germany’s
federal government is responsible for national AI policies.
More and more companies in Europe are using artificial intelligence (AI) technologies. In 2025, one in five companies in the EU with 10 employees or more used at least one major AI technology, up from 8% in 2023 (Eurostat, 2026a).
Contribution
31. August 2026
Samina Sultan in the Financial Times
Letter: Expanded EU carbon border tax is not a reaction to US tariffs
In his op-ed (August 12) Andrew Puzder, the US ambassador to the EU, accused the EU of double standards. He argued that criticising US tariffs on steel and aluminium derivatives while simultaneously imposing Carbon Border Adjustment Mechanism charges on the same products, is hypocritical.
European Minimum Wage Directive and Strengthening Collective Bargaining Coverage
Hagen Lesch / Lennart Eckle / Sandra Vogel
The EU Minimum Wage Directive recommends that EU Member States achieve a collective bargaining coverage of 80 per cent to ensure adequate minimum wages.
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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.")
