: Statistics on real estate, housing and investment

How is the general economic situation of people developing? When is buying or selling worthwhile? What current studies are available? We have made it our mission to collect the most important results from the Federal Statistical Office for you.

Tip! Classic or exotic: Which property is suitable as an investment? The interview: Real estate as an investment (Part 1) + my Investment Atlas for Germany

House Price Index in Germany

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Current Inflation in Germany

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Attractiveness for Real Estate Investments

The shares of real estate companies in Germany give an impression, as does the Federal Statistical Office. Let’s start with the most important question:

How do you assess Germany’s attractiveness as a location for real estate investments in the year?

More statistics can be found at Statista

Germany’s Position in the European Comparison

How would you assess Germany’s attractiveness as a location for real estate investments in 2019 in comparison to other European countries?

2023: The Real Estate Price Drop -6.8%

The latest figures from the Federal Statistical Office:

“The average price of residential real estate fell by 6.8% in the first quarter of 2023 compared to the same quarter of the previous year. According to the Federal Statistical Office (Destatis), this was the largest decline in residential property prices compared to a previous quarter since the start of the time series in 2000.”

This applies not only to existing properties, but the sentiment is also reflected in new construction.

Completion of residential units in residential and non-residential buildings

Here you can see the official evaluation of: “Completion of residential units in residential and non-residential buildings* in Germany (in thousands)”. The latest figures are still from 2022. In the first half of 2023, construction permits were granted for 135,200 residential units in Germany, whereas 200,000 would have been needed to achieve the planned target of 400,000 new buildings for the year.

• Target 2022: 400,000 newly built residential units
• Achieved: 292,000

Residential construction stagnates: Number of approved housing units

How has the number of approved housing units in residential and non-residential buildings in Germany developed? The number of new approvals is decreasing, as well as the actual newly built units.

– 27.1 % in 20 years

Number of approved housing units in residential and non-residential buildings in Germany from 1995 to 2017.

• 2022: 331,300
• 2018: 346,810
• 2013: 270,34
• 2008: 174,691
• 2003: 296,823
• 1998: 475,711

Tip! Interesting statistics

Further studies and statistics can be found on the websites of the Federal Statistical Office. Read more about:

• Heirs and inheritance statistics
• Money investment statistics
• For new construction: Weather statistics

2019: Stable growth

Income thresholds for classifying individuals and couples as poor or rich

Here you can see the official analysis of: “Income thresholds for classifying individuals and couples as poor or rich based on monthly net income”.

• Poor (1 person): 781 euro
• Normal (1 person): 1.301 euro
• Wealthy (1 person): 3.418 euro
• Poor (couple): 1.171 euro
• Normal (couple): 1.952 euro
• Wealthy (couple): 5.127 euro

More statistics can be found at Statista

Disposable income per employee

Disposable income per employee in Germany from 1960 to 2018. Here you can see the average disposable income per employee in the last 5 years in Germany:

• 2018: 22,792 Euro
• 2017: 22,124 Euro
• 2016: 21,636 Euro
• 2015: 21,098 Euro
• 2014: 20,577 Euro

Unemployment rate on an annual average

Unemployment rate in Germany on an annual average from 2004 to 2019. Here you can see the official evaluation of the unemployment rate in the last 5 years in Germany:

• 2019: 5.3 percent
• 2018: 5.2 percent
• 2017: 5.7 percent
• 2016: 6.1 percent
• 2015: 6.4 percent

Average unemployment number

Average unemployment number in Germany from 2004 to 2019. Here you can see the average unemployment number in Germany over the last 5 years:

• 2019: 2.39 million
• 2018: 2.34 million
• 2017: 2.53 million
• 2016: 2.69 million
• 2015: 2.79 million

2018: Rent Boom

Square meter price for condominium – Top 10

Here you see the cities with the highest square meter prices for condominiums in comparison of the years 2010 and 2018* (in euros per square meter).

1. Munich (Bavaria) with 8,342 euros per square meter; from 6,737 euros per sqm in 2014; increase of 1,695 euros per sqm in 4 years
2. Stuttgart (Baden-Württemberg) with 5.925 Euro per square meter; from 4.744 Euro per sqm² in 2014; increase of 1.181 Euro per sqm²
3. Frankfurt am Main (Hessen) with 6.060 Euro per square meter; from 4.373 Euro per sqm² in 2014; increase of 1.687 Euro per sqm²
4. Freiburg im Breisgau (Bayern) with 4.943 Euro per square meter; from 4.740 Euro per sqm² in 2014; increase of 203 Euro per sqm²
5. Ingolstadt (Bayern) with 4.969 Euro per square meter; from 4.287 Euro per sqm² in 2014; increase of 682 Euro per sqm²

More statistics can be found at Statista

Cities with the highest rental prices for apartments

Here you can see the 10 cities with the highest rental prices in the 4th quarter of the house valuation and the common methods can be found here. Year 2018:

1. Munich: 17.56 Euro/m²
2. Frankfurt am Main: 13.96 Euro/m²
3. Stuttgart: 13.64 Euro/m²
4. Berlin: 12, 29 Euro/m²
5. Darmstadt: 12.23 Euro/m²
6. Mainz: 12.17 Euro/m²
7. Freiburg: 12.13 Euro/m²
8. Wiesbaden: 12.03 Euro/m²
9. Hamburg: 11.94 Euro/m²

2017: New Construction Volume

More on the topic:

• New Construction: Single-family home, building land, financing and costs
• Developer: Realizing new construction

Approval volume for new residential and non-residential buildings

2016: Comparison of Federal States

Number of newly built residential buildings by federal state

Here you can see the number of newly built residential buildings by federal state:

• Bavaria: 21,600
• North Rhine-Westphalia: 17,400
• Lower Saxony: 15,400
• Baden-Württemberg: 14,500
• Schleswig-Holstein: 6,800
• Hesse: 6,400
• Brandenburg: 6,200
• Rhine-Palatinate: 5,900
• Saxony: 4,300
• Mecklenburg-West Pomerania: 2,400
• Berlin: 2,200
• Saxony-Anhalt: 2,100
• Thuringia: 2,000
• Hamburg: 1,400
• Saarland: 900
• Bremen: 500

Development of house prices

Development of house prices in Germany from 2000 to 2017 (2015 = index 100).

Development of the rental price index

Development of the rental price index for Germany from 1995 to 2017 (2010 = index 100)

Other

Development of local rental prices

How have local rental prices developed in your region in recent years?

Controversy: Google Street View

Would it bother you if your house were visible up close in Google Street View on the internet or is that not the case?

Condominium Ownership

How high is the homeownership rate in the individual federal states? Here are the “most recent” figures from the federal statistical office. Since 2014, there has been no new survey. As soon as new data becomes available, we will include it here! Here you can see the homeownership rate in Germany between 1998 and 2014 by federal state.

© Statista 2019 – Source: Federal Statistical Office

Sell hotel – Tourism and guest numbers

Munich, Berlin, Frankfurt and nationwide: Tourism in Germany is booming and has been shining with new record numbers for over 10 years. Accordingly, the number of overnight guests is naturally increasing, as is the demand for hotels in the real estate market. From the stylish, luxurious boutique hotel in the city center to hotels with attached gastronomy and event areas. In Germany, people are not only taking more vacations, but also spending more money on them. As a result, prices for overnight stays are rising, and the hotel industry is becoming a lucrative business for more and more companies and entrepreneurs.

Therefore: The real estate market and the tourism market are both currently on the rise. If you sell now, you will achieve a good selling price – why wait for the next real estate bubble?

Overnight stays in German accommodation establishments from 1992 to 2018 (in millions).

Help and Definition

The most important forms of representation and terms at a glance:

Why are the studies so selective?

The Federal Statistical Office only offers a part of the information for free use. A large portion of the statistics that have been prepared for use are only available with a Premium account. This Premium account at the Federal Statistical Office costs 49 € per month.

What is a bar chart?

Bar charts are the most common form of statistical results used by the Federal Statistical Office. In a bar chart, different values are displayed on a scale. The scale extends along one axis and contains a value, such as the number of inhabitants or the average income. The other axis then carries the different types or classes, for example, different age groups or the subdivision into different districts.

What is a pie chart?

The pie chart format is used relatively rarely by the Federal Statistical Office. A pie chart displays statistical values in a 100% distribution. A pie, meaning a circle, represents 100%. When entering individual values, a straight line is drawn from the edge to the center, creating small triangles, one side slightly rounded. This creates the optical effect of a pie slice. That is why this form of presenting statistical values is also called a pie chart.

What does the Federal Statistical Office do?

As an authority, the Federal Statistical Office is responsible for collecting general, relevant data. This data is used, among other things, by various ministries, as well as by associations, private individuals, and naturally also by students and students. The Federal Statistical Office is based in Berlin, but is also represented by various offices throughout the country.

Are the statistical data representative?

Yes, the surveys conducted by the Federal Statistical Office are mostly representative surveys or results from extrapolations. The data are therefore interesting for many population groups, from the real estate agent who wants to observe the demographic development of a particular area to students preparing for a presentation or a major research paper. Thus, the Federal Statistical Office fulfills a major and important task in Germany.

Further studies and statistics can be found on the internet pages of the Federal Statistical Office. Read more about:

• Heirs and Inheritance
• Saving money / Investment
• Weather in Germany

Why did Hollywoodland become Hollywood?

Originally known as “Hollywood Land,” it was once created by a smart real estate investor to attract wealthy property buyers! A story of rise, fall and rise again – so American.

Today have written a new post (on Immobilien-Erfahrung.de), about a story that fascinated me as a real estate fan so much that I researched more. It’s about a real estate investor, one of the most famous symbols in the world and a clever advertising idea for newly built properties.

The plan of real estate investor Harry Chandler

In 1923, the Hollywood sign was erected. It was developed by real estate investor Harry Chandler as part of an extensive advertising campaign for his real estate project in the Hollywood Hills.

Chandler had a vision to transform this sprawling area into an exclusive and upscale residential neighborhood.

Harry Chandler had big plans for the Hollywood Hills area. As president of the Los Angeles Times, he recognized the enormous potential of the region for the development of an exclusive residential area.

The location of the Hollywood sign in Los Angeles

The location of a property is crucial! Here is the Hollywood sign in Los Angeles:

360° view from Hollywood sign

A breathtaking view over LA!

View of the skyline: Los Angeles from above

The investor: Who was Harry Chandler?

Photo By Los Angeles Times | CC BY 4.0, Link

As editor of the Los Angeles Times, Harry Chandler used his position to exert political and economic influence. He was committed to promoting infrastructure projects and economic development in Los Angeles. Chandler supported the expansion of the Port of Los Angeles, which contributed to its current importance as one of the largest seaports in the world.

In addition, he played an active role in promoting tourism in the region, supporting the construction of hotels and attractions that promoted Los Angeles as a tourist destination.

Chandler was also well-connected in political circles and maintained close relationships with influential figures in the city and beyond. His influence spanned a variety of areas, from real estate development to the media landscape and urban development in general.

Harry Chandler left an impressive legacy that had a lasting impact on the growth and development of Los Angeles.

“Hollywood Land” – Chandler’s ambitious project

Hollywood Land was Chandler’s ambitious project aimed at attracting wealthy real estate buyers. He purchased large tracts of land in the Hollywood Hills and developed a plan to build an upscale residential neighborhood there that would be inhabited by celebrities and wealthy families. To attract the interest of potential buyers, Chandler planned an extensive advertising campaign in which the Hollywood sign would play a central role.

“Hollywoodland, the Subdivision Beautiful.”

Investment Tip

Guess who has two fillet properties for sale in Bel Air? Read more property buy Bel Air here.

15 meters high letters and 4,000 light bulbs

The gigantic letters were erected on a hill and were visible from afar. The original Hollywood sign consisted of thirteen 15-meter-high letters that formed the words “Hollywood Land”. It was illuminated by some 4,000 light bulbs that shone like a brilliant lighthouse over the city at night. This impressive construction was a technical feat at the time and was intended to attract potential buyers from afar.

Chandler was a savvy businessman and knew that the Hollywood sign would serve not only as a marketing tool, but also as a symbol of the glamour and opportunity associated with life in Hollywood Land. The sign quickly became a landmark that embodied the dreams and ambitions of people around the world.

Chandler’s successful advertising strategy

Chandler’s strategy was successful, and Hollywood Land quickly became a desirable address for wealthy real estate buyers. Celebrities such as actors, directors, and producers like Charlie Chaplin moved to the area, and the sign became a potent symbol of the glamorous lifestyle and dreams associated with the entertainment industry.

This is what the Hollywood Hills and Beverly Hills look like today. The average rent for a house is quickly $10,000 per month.

The downfall of Hollywood Land

Unfortunately, the success of Hollywood Land did not last. In the following decades, the area fell into oblivion and the sign began to deteriorate.

The demise of Hollywood Land was the result of a combination of factors that caused the area to lose its appeal in the decades that followed.

Changes in the film industry: The neighborhood

In the 1920s and thereafter, the film industry in Hollywood experienced an enormous boom. Film studios increasingly focused on other areas in Los Angeles, such as Hollywood Boulevard, instead of producing in the remote Hollywood Hills. As a result, the area lost importance for the film industry, which also affected the interest of celebrities in Hollywood Land.

Economic difficulties: Falling real estate prices

In the 1930s, the Great Depression broke out and also hit the real estate industry hard. Financial uncertainty made many potential buyers reluctant to invest in exclusive residential areas like Hollywood Land. Real estate prices fell, and the project ran into financial difficulties.

Neglect and vandalism in the Hollywood Hills.

Over time, the Hollywood sign was neglected and was increasingly subject to vandalism. Maintenance and care of the sign were neglected, leading to decay and damage. As a result, the sign lost its former luster and appeal.

Urban development: loss of charm

Over the decades, Los Angeles continued to develop and the demand for residential and commercial real estate led to new construction projects. Some areas of the Hollywood Hills were converted for the construction of residential and commercial complexes, resulting in a change in the landscape and a loss of the original charm of Hollywood Land.

All of these factors contributed to Hollywood Land fading into the background and losing its former appeal. Fortunately, however, efforts and investments were later made to restore the Hollywood sign and preserve it as a Los Angeles landmark.

Decay and restoration

For the reasons stated above, the Hollywood sign began to deteriorate over the years due to neglect and vandalism. In the 1940s, the words “Country” were removed from the sign, so from then on it read only “Hollywood.” Nevertheless, the sign remained a fixture in the city and was beloved by residents.

The rescue of the Hollywood sign

Did you know that the Hollywood sign was almost torn down in the 1970s to make way for new construction projects? But thanks to the dedication of celebrities like Hugh Hefner, founder of Playboy magazine, and generous donations from the public, the sign was saved and restored. It received a major renovation and became an official Los Angeles landmark.

Until today: symbol of the entertainment industry

Today, the Hollywood sign not only stands for the Hollywood Hills and the dream of fame and fortune, but also symbolizes the world-renowned entertainment industry. It is a coveted photo motif for tourists from all over the world and serves as the starting point for numerous celebrities’ careers.

The history of the “Hollywood” sign

Long ago, when the entertainment industry was still in its infancy, there was an ambitious real estate investor named Harry Chandler. He had a vision that went far beyond what people could imagine. He bought large tracts of land in the Hollywood Hills and created an exclusive residential area called Hollywood Land.

But Harry knew he had to do more to attract wealthy buyers. He had a brilliant idea – a sign that towered high above the city, proclaiming glamour and success. The Hollywood sign was born. The gigantic letters glowed with thousands of light bulbs and attracted the attention of the world. Celebrities like Charlie Chaplin and Mary Pickford flocked to the Hollywood Hills and made their dreams come true.

The Hollywood sign tells a story of dreams and resilience. It symbolizes the magic of the film industry and reminds us that even in the darkest of times, there is hope. It stands proudly over the Hollywood Hills, inviting us to pursue our own dreams. Because in the land of illusions, anything is possible.

It all started with a real estate advertising idea!

That was the short investor story of the “Hollywood” sign.

Hollywoodland 2030? Saudi Arabia in a construction boom

You want more interesting real estate investment stories from around the world? How about the UEA (United Arab Emirates)! To lure real estate buyers, a hundred years later, gigantic signs are no longer built, but gigantic construction projects that have never been seen before.

3 examples: The Line, Mukaab & Maraya

3 examples I have brought with me. The Line, a 170 kilometer long, 500 meter high, mirrored line will soon cross the Saudi Arabian desert. In Riyadh, the “Mukaab” is being built. Simply put, the most expensive surprise egg in the world! Costing 800 billion, the construction will provide space for 20 Empire State Buildings. A 400 meter high, wide and long indoor super city in the center of Riyadh. Example 3 is the Maraya, the largest mirrored concert hall in the world.

• The Line: The Desert City
• Mukaab: Indoor Super City
• Maraya: Mirrored concert hall

Megaprojects are being built all over the world. To attract people and capital to Saudi Arabia, they’re thinking one more big. Learn more about the:

• Saudi Arabia: Mega Construction Projects & Development 2030

Search engine optimization for brokers

Traffic means reach, i.e. visitors who are on your website. SEO Tip from professionals, for professionals! First, let’s start with the definition of search engine optimization.

What does SEO mean? 5 Basics

Search engine optimization (SEO) includes all measures that serve to increase the visibility of one of your website in search engines (such as Google, Bing & Co.). These are:

1. Page structure and keywords
2. Page content with structure, keywords, text length and links
3. Visualizing (photo) and explaining media (infographic, explanatory video, etc.)
4. Internal links (increases page dwell time)
5. External links (increases page relevance)

Goals in SEO: High placement in search results

There are two crucial aspects for you:

1. If someone is looking for you, you should “be there” – just learned already
2. When someone searches for topics relevant to you, you should “be there”

There will be to the 1) search queries that revolve around you. Typical are

• “Sample broker city” – General search
• “Sample Broker Reviews”
• “Sample Broker Valuation”
• “Sample Broker Experience”
• “Sample Broker Experience”
• “Sample broker reputable”
• “Sample broker unserious”
• …

Now, if you do not have your own website, you will not have any influence on the search results. If you have too small a web page, for example, only home page, About us and Contact, it also happens that others (competitors) appear before you. Or even portals like Gutefrage.net, where someone has asked this question about your name.

The stronger your page, the more present (visible) you are

There are millions of searches in Germany every day, just for the context “real estate”. Sell, rent, manage, buy, finance, … that’s why you should 2) “be there” when someone searches for topics relevant to you.

You will now learn the basis for this: the structure.

No matter where and when someone searches for you, they have the “sovereignty” on the first page (to be seen right away in example graphic).

SEO Advantages: More visitors, new customers

• Here you also achieve the acquisition of new customers via search engines
• More visitors on the website
• Additional sales channel
• Targeted marketing activity (through search terms / active “demand”)
• Once set up, you get “free” visitors, every day

SEO Disadvantages: Long-term and initial costs without ROI

• Long-term build-up necessary, especially in the real estate sector (high competition)
• Build up time: At least 1 year
• ROI (return of invest) will be achieved late (comparison: SEA quasi immediately)
• Costs for content creation and website

SEO, SEA, what’s the difference?

SEO deals with your website, its content and structure. SEA (search engine advertising) on the other hand, is a “direct” placement in search engines through paid advertisements. These ads are displayed above the organic search results (SEO).

Real Estate SEO for Beginners: How it works

Simply put:

• Creating a website for desktop / mobile devices
• Plan topics (keywords) in a structured way
• Create individual pages (company pages and blog posts)
• Each blog post has 300 – 1,000 words, links to other posts
• Goal: Good quality and more content than the direct competition

By individual topics / keywords:

• House for sale Berlin
• Sell house after inheritance Berlin
• Sell house after divorce Berlin
• …

your “platform” becomes strong. Your subtopics (such as house selling divorce Berlin) thereby link to the parent page (house selling Berlin).

As a result, the visitors you have collected in the search engines will stay longer and longer on your website.

Why SEO! Advantages for real estate agents

Advantages of SEO – When person X learns about you as a realtor, through recommendation, advertising, by chance, person X will in almost all cases search for you as a realtor. Mostly in search engines, mostly on Google. There are 10 places in the search results (away from advertising), the more channels you serve, the more you determine the information that is here.

In short:

• 85% search for information first on search engines
• Page 1 has 10 results (away from advertising > SEA)
• No digital media = No influence

SEO offers the ultimate advantage:

• Once on page 1, it will be hard to oust you (sustainable)
• Users have a need, they already want something
• You give users “something” for free, without anything in return (positive image)
• Users recommend your good content
• SEO works for you 24 hours a day, 7 days a week
• You passively (after work) collect new leads

Disadvantages of SEO: You have to be that honest

SEO is long-term marketing, you will achieve results (visitors) only after weeks and months, depending on how hard you work on it and how high the competition is (C-location easy, A-location hard).

• Long-term online marketing
• Results by weeks, months
• Time intensive (article creation)

For this, your search engine rankings are very sustainable and often stay for years once you have made it. Because, the competition must first become better than you. Compared to advertising in search engines, you do not pay for each click (about 4 – 16 euros / click in the real estate segment).

Checklist! The 3 SEO basics for brokers + example

To be visible (as seen in the example in a moment) you basically need only 3 things:

1. Google Business Entry
2. Website
3. Social media channel, example Facebook, Instagram and LinkedIn

… you have already taken a certain part of the first page. Here you can see how effective the mix of these 3 components is, for all those who are looking for you.

1. Internet site in the first place of the search results
2. Google Business Entry
3. Own photos, direct, visual understanding
4. Map and directions
5. Address, contact details and opening hours
6. Social media (Facebook)
7. Reviews on the web (Facebook)

Almost all roads, lead to the broker (not third parties or even competitors).

How does SEO work, so right?

Let’s get back to your brokerage website and the question: How does SEO work, so right?

Create theme construction: “Keywords” – What do you want?

You build individual blog posts for individual so-called keywords. For example, one keyword could be “renting”, another “renting tips”, yet another “renting process” and yet another “first renting”. Depending on what users are looking for in a search engine, you have the right content for it.

Here again the example of the introduction for our real estate agent in Berlin, with the focus object acquisition:

• House for sale Berlin
• Sell house after inheritance Berlin
• Sell house after divorce Berlin
• …

Create SEO texts: 1-2-3 formula – checklist

On the Internet you will find thousands of guidebooks that will tell you a lot about SEO, in principle, means good optimization.

The little 1-2-3 formula:

1. Create individual pages (company pages and blog posts)
2. Each blog post has 300 – 1,000 words
3. Articles link to other posts (Sale > Divorce > Separation year and back).

The most important, most important (!) in SEO – added value

Now the most important thing:

Importantly, these articles should contain added value!

Therefore directly tip 2:

It’s not about creating 1,000 articles, better are 50, 100 focused (topic) and dotted (region)

Added value means that your visitors take something with them, ideally stay on your website for a long time and thus increase the value of your website (domain value). This way you get more and more visitors, thus also new customers.

2 SEO example for object acquisition

Are you looking for existing properties in your region (real estate acquisition)? Help sellers with problems, landlords, heirs. Almost everyone will want to sell sooner or later.

The first SEO text

You now know the process you need to follow to advance your website. SEO is long-term marketing, you will achieve results (visitors) only after weeks and months, depending on how hard you work on it and how high the competition is (C-location easy, A-location hard).

SEO summarized

SEO means quickly explained

• Structure – contents and texts
• Added value – texts must “give something” to readers
• Links – Links provide further information
• Goal – Good content ensures high placement in search results

Agencies like Model Agency One offer holistic online marketing solutions for maximum visibility.