Germany’s real estate supply and demand dynamics can drive investment opportunities as its economy re-emerges from the coronavirus crisis.
The fundamental supply and demand mismatch in Germany’s residential real estate sector means there remain significant opportunities to invest in key cities, such as Berlin, Hamburg, Dresden, Leipzig, Cologne and Düsseldorf — despite the unprecedented declines in transaction volumes across European markets as a result of COVID-19.
Countries across Europe have committed to a controlled, cautious reopening of their economies. However, when assessing the impact of the pandemic on various countries, it is increasingly clear that the crisis has created a story of imbalance. While all economies have been hit, Germany has been among the least affected in terms of GDP forecasts, with its economy expected to shrink between 6 percent and 8 percent, compared to 11 percent in Italy and 14 percent in the United Kingdom.
Underlining
