The German residential real estate market is one of the most complex and heterogeneous in Europe. With the white paper “The ABC of the Housing Market”, Lübke Kelber has developed a scientifically sound housing market classification for 135 German cities for the first time, thus creating a new orientation for investors, portfolio holders and financing institutions. The aim is to establish a uniform frame of reference for the residential real estate market. The typification is intended to improve the comparability of German residential locations and structurally strengthen research, investment decisions and market understanding.
The structural characteristics of the housing market have so far only been taken into account to a limited extent in general market considerations, which posed challenges for less specialised players in particular and exposed them to the risk of making wrong strategic decisions. The white paper closes this gap through an independent housing analysis that combines demographic, economic, real estate and location-related factors.
As a result, the study defines a system of three city hierarchies: A (International Investment Grade), B (National Investment Grade) and C (Regional Investment Grade). The system is supplemented by the new location suffices “Metro” and “Uni”, which make commuting links with metropolises and the importance of universities for the demand for housing visible.
In total, Lübke Kelber defines 14 A stores, 40 B stores and 81 C stores from a residential point of view. The A markets are in detail.
- Berlin
- Bremen
- Dortmund
- Dresden
- Dusseldorf
- Food
- Frankfurt a.M.
- Hamburg
- Hanover
- Cologne
- Leipzig
- Munich
- Nuremberg
- Stuttgart
Mark Holz, Head of Strategy and Research and author of the study, emphasizes: “Our goal was not to develop another ranking, but to create a common language for the housing market. Only when markets become systematically comparable can investment decisions be made in a well-founded manner.”
Mac Sahling, CEO of Lübke Kelber, focuses on relevance for market participants: “With the white paper, we are providing investors and portfolio holders with an instrument that provides orientation and supports long-term decisions.”
