Rents in Germany rise despite increase in building permits

Swiss investment manager Empira AG has published a new study on the impact of 11 different factors on residential rental growth in 80 major German cities. According to the study, the employment market offers the strongest correlation to rental growth. The number of completions of new residential space as well as building permits also correlate positively with rising rents. The study covers a 10-year period. The factors correlating strongly with residential rents are unemployment, the dynamics of property prices and employment level variation. Cities such as Berlin, Leipzig and Erlangen, whose employment situations have been particularly dynamic in recent years, have also seen above-average rental growth.



Photo: Empira AG