Berlin Hyp has published its fifth Trend indicator expert survey, in which around 300 real estate experts assessed the trends in the German real estate market. The survey shows that Germany continues being a highly attractive location for real estate. 84% of the survey participants rated the German real estate market as “much more” or “somewhat more attractive” compared to other European markets. According to the experts, ongoing low interest rates and the trend in purchases prices will be the decisive factors for the market’s development over the next 12 months. 84 % of those surveyed assume that commercial real estate financing processes will be automated and standardised in the next five years, thereby rendering digitalisation as more possible. When it comes to Brexit, nearly 60% of the respondents predict an increase in demand for German real estate, while 37% expect the demand to remain the same. To prevent the residential market in non-urban areas from collapsing, most of the respondents (83%) thought that more housing was needed in B and C cities. According to 67% of the participants, the success of Airbnb and other accommodation platforms is taking its toll on 3-star hotels especially. Despite the currently strong growth rates in online retail, real estate experts think it will reach a point of saturation in five to ten years’ time. The cities Munich, Berlin and Hamburg remain the primary real estate centres.
