Savills’ February 2016 report on Germany’s residential investment market highlighted how, across the country as a whole, there is a shortage of apartments. This is because Germany’s population had been growing faster than anticipated, even before the arrival of refugees. Asking rents have gone up by 6.5% over the last three years. There has been double-digit growth in many cities with populations of over 500,000. Looking forward, the population of Frankfurt is expected to rise by nearly 6% in the 10 years to 2015. The gross initial yield for residential investment property is 5%. By way of comparison, yields in cities where the populations are expected to fall are generally 7-9%, and 10% in some cities in Eastern Germany.

Source : Savills/Mar 2016/Frankfurt/RES