Investment Locations
Discover with us the hottest locations in Germany and how choosing the right city can improve your real estate investment returns
Different types of locations will offer different amounts and combination of relevant investment factors, such as
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rental yield
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risk of vacancy
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opportunities for rent increasements
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We are constantly watching the market developments and fundamentals in several locations all over Germany to find out which spots offer great investment opportunities for real estate.
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Get more information below and find out which spot or combination might suit best to your personal investment targets and comfortabilty.
Tier 1cities
Cities that are considered as Tier 1 location would usually offer lower rental yields but higher stability in their ongoing operations and future value increasements.
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These cities would be the first address for global investors to watch out for their first real estate investment in Germany as a strong basement for the start of their property portfolio.
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From these cities you can usually expect
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4 to 5% Rental yield
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<5% vacancy risk
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>3% rent increase p.a.
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These locations would grant the highest amount of security for your real estate investment but would also require a higher ratio of equity compared to other locations.
Discover Germany's most relevant Tier 1 locations in our blog-post "Germany's Residential Real Estate Hotspots & Investment Cities"
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Tier 2 cities
Cities in these locations would offer a balanced mix between rental yield and stability.
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From these cities you can usually expect
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5 to 6% Rental yield
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5 to 10% vacancy risk
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2 to 3% rent increase p.a.
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Investing into a German Tier 2 location can improve investors returns by still keeping a reasonable part of security in their portfolio.
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But remember: Not all Tier 2 cities shall be considered for investing. Don't forgot to take an expert on board who can guide you to success on your investment journey.
Tier 3 cities
Cities that are considered as a Tier 3 location can offer very high rental yield but also need a much more deep analysis and knowledge of the local fundamentals.
From these cities you can usually expect
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>6% Rental yield
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>10% vacancy risk
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1 to 2% rent increase p.a.
Although investing in such locations can be highly profitable Investors are recommended to partner with a German expert knowing the specific angles of these locations and how to use them beneficiary.
