German rental housing market report: revenues increased

The demand for apartment buildings in the German market has increased significantly last year. Sales in the top 50 cities have risen by 22%, according to a study by the Center for Real Estate Studies (CRES), commissioned by the real estate association IVD.
"The turmoil in the capital markets have increased the interest in property and led to both private and institutional investors to invest more in residential real estate," says Vice-President IVD Jürgen Michael Schick. "In good and medium-sized residential areas there is currently a significant excess of demand observed, which could lead to further price increases."
Berlin, Munich and Hamburg saw the largest percentage of sales, which together represent 46% of sales. In 2010 these three cities had sales totaling 4.77 billion euros. The 10 most populous cities accounted for 71% percent of all revenues of the top 50 cities. The most active apartment building markets are concentrated in Berlin, Hamburg, Munich, Cologne, Frankfurt (Main), Stuttgart, Dusseldorf, Dortmund, Essen and Bremen.
While Munich was among the top three cities in 2010, sales fell by 16% to 905 million euros. The Munich apartment building market is relatively volatile in recent years," says Schick. "This year, it already is looking more positive. In the first half of 2011, sales increased over the same period last year by 30%.” (worldproperties.com)