Berlin Hyp: Germany the most attractive RE market in Europe
Germany, the Nordics and Benelux are the most popular markets in Europe and there is renewed optimism on transaction volumes, according to the latest Trendbarometer, Berlin Hyp’s survey of over a hundred real estate professionals across Germany, which was published yesterday.
“The German real estate market scores highly in an international comparison, thanks to a political system that remains stable and to the strength and value of our functioning state under the rule of law,” said Sascha Klaus, chair of the board of management, Berlin Hyp. “Additional security is also provided by the less pronounced volatility of prices and the continued high demand for housing in this country.”
Germany was chosen by 48% of respondents to the survey as the most attractive European real estate market at present, closely followed by the Nordics at 40% and Benelux at 29%. Spain is in fourth place at 25%, followed by France and the UK at 19% and Italy last at 9%.
The positive assessment of the German commercial real estate market was also reflected in the belief that transaction volumes will improve this year: 36% of respondents believe there will be an uptick between 1 and 9%, and only 21% think there will be a decline.
The German commercial real estate market is seen as more attractive compared to the rest of Europe and sentiment has improved markedly since the Trendbarometer survey in Autumn 2024. However, respondents believe that in the aftermath of the political elections Germany urgently needs to shift into high gear and tackle the necessary reforms, improving infrastructure and energy resilience.
The context is not positive: Europe is facing major economic and political challenges and it must become more competitive at a time of high tariffs, protectionism and trade conflicts.
“The last few weeks have shown that the global economy is in a phase of massive upheaval that, of course, Europe cannot escape,” said Klaus. “It is important to display European unity now and to focus on the strengths of our common internal market. The results of the latest Trendbarometer show that in order to strengthen European competitiveness, it is essential to address the existing structural challenges, which are very similar to those in Germany.”
The survey results show that 86% of respondents believe Europe needs to have less regulation and bureaucracy in order to be competitive again, while 58% opted for improvements in infrastructure. Other significant issues raised were greater independence in the energy sector and higher investment in research and development.
