Germany holds the largest share of the residential market in Europe and continues to hold a risk-ratio return that compares quite favorably with other European property markets. This applies primarily to newer construction since interest is weaker in the older housing market. While the market across Germany may suffer from unclear pricing and a low volume of transactions, the major centers of Hamburg, Frankfurt and Munich continue to hold steady for housing built after 1995. The report goes on to note that housing built in the 1950’s and 1960’s is not likely to become attractive for investors any time in the near future due to low levels of maintenance performed on such properties.

Both domestic and foreign investors find a lot to like in German property that’s situated well economically and in fact, in terms of sound investing, German property outperforms the stocks and bonds market.