The real estate market occupies an important place in the development of the economies, the outstanding role and importance of which is in the formation of the investment attractiveness of a country and the livelihood of its citizens.
When comparing and analyzing real estate markets around the world, investors pay attention to the structural changes in the demand for buying and selling of real estate objects, the dynamics of real estate prices as well as returns on direct investments. The existence of appropriate conditions for investment in real estate allows an investor to make an informed decision, is another basis for shaping the investment attractiveness of the country and has undisputed relevance.
A stable economy, high quality of life, well-developed infrastructure and high population growth make Germany one of the most attractive countries for real estate investment. Germany ranks third among the European countries with a high demand for real estate purchases. The residential real estate prices increased by 10.7 percent in the second quarter of 2021 compared to the same period last year according to the Association of German Pfandbrief Banks. Furthermore, due to demographic changes, real estate income in Germany is in high demand among both locals and foreigners. According to Statista Research Department in about 45% of the real estate transactions in Germany each year are indeed international investors involved. Therefore, the German real estate market is characterized by an increasing investment attractiveness, which is reflected in an increasing demand for houses and apartments, rising prices for residential properties and an increase in investments in commercial properties.
On the other hand, the real estate industry is facing increasing challenges in housing conditions, growing traffic, environmental sustainability as well as increasing regulatory requirements. For investors and construction companies, it means regular reporting on corporate processes and strategies as well as new mandatory disclosures in the approval procedures.