Is Germany still a safe-haven for real estate investment?

Exclusive GRI report: Key insights and analysis following the annual gathering of Germany's real estate elite at Deutsche GRI 2024

June 12, 2024Real Estate
Written by Helen Richards

Germany, Europe’s economic powerhouse, has been in a state of stagnation for over three years. German GDP growth has been lacklustre, and this issue extends beyond simple cyclical fluctuations. The nation's finance minister's lighthearted remark that this is not something that can be fixed with "one cup of coffee" underscores the deep-seated, structural problems plaguing the economy.

This year’s annual Deutsche GRI 2024 in Frankfurt saw in-depth analysis of the wider European economic scenario and how Germany is positioned within it, as well as honest and open discussion regarding real estate investor sentiment.

This exclusive GRI report provides the main insights and takeaways from the event, including expert European macroeconomic analysis.

(Credit: GRI Club)

The housing shortage and shifting trends in the country’s rental sector were noted to be bringing opportunities to the real estate sector, as well as challenges, and all against a backdrop of serious structural issues impacting the country’s economy.

Said structural issues include the country’s underperforming industrial sector, as well as other factors affecting economies across the world, namely demographics, de-globalisation, and decarbonisation

Meanwhile, questions were raised regarding the status of Germany's real estate market as a safe-haven for investments. Confidence still remains, driven from the historic stability of the economy, the rich talent pool, and the capabilities of the real estate market, however prevailing phrases such as "survive until 25" and "back in heaven in 27" highlight the transformative period the real estate industry is undergoing.

Read the full report here now.