Land Shortage Fueled Rent & Purchase Price Growth in Frankfurt Residential Market

September 18, 2017— According to Colliers International, no end of the price rally in the housing markets in Frankfurt and the Rhine-Main area will be in sight in 2017...
Frankfurt
Frankfurt, Germany

September 18, 2017— According to Colliers International, no end of the price rally in the housing markets in Frankfurt and the Rhine-Main area will be in sight in 2017 either. From the current Colliers market report on residential investment, it is also clear that due to the unrestrained population growth in the future is not to be expected from a relaxation of the market.

Jan Ludwig, Teamleader Residential Investment in Frankfurt at Colliers International: “The housing market of Frankfurt is in a tense situation and is characterized by rising rents and purchase prices in all segments and districts. Added to this is the unchanged favorable financing environment, which results in a high attractiveness of the acquisition of owner-occupied apartments for investment or self-employment. “

This development is illustrated by the persistently high transaction figures as well as increasing sales in this segment for years. In 2016, however, a record year was also achieved in the market for owner-occupied apartments, and overall turnover more than doubled compared to 2014 with a result of almost 2.9 billion euros.

The rent and purchase price growth is increasingly driven by an extremely scarce property offering in the entire urban area. Although the city of Frankfurt is striving to show new building land on a larger scale (for example by the future realization of a new district along the A5 in the north), planning and participation processes often delay the rapid implementation of projects. “The lack of land and product therefore drives institutional investors and project developers increasingly into the hinterland of the main metropolis. The focus is on cities such as Hanau and Offenbach, “concluded Ludwig.

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EuropeFrankfurtGermanyGlobalMulti FamilyResidentialSingle FamilyVacation Rental

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