Despite the construction crisis, high interest rates and political uncertainty, the residential real estate market in German metropolitan areas remains attractive in the long term – especially from an investor’s perspective. Because while new construction is stagnating, the demand for affordable, well-connected living space continues to rise. The trend towards cities continues – but it does not have to end in congestion if we finally think about decentralization consistently and intelligently.
Metropolitan areas: scarce supply, stable demand
Whether in Berlin, Leipzig, Dresden or Munich – living space remains scarce where people want to work, study and live. Demand remains high, while supply is falling due to a lack of new builds, demolition of old properties and ever stricter regulations.
For investors, this means that anyone investing in urban centers or their immediate surroundings will continue to encounter structurally undersupplied demand. Rental prices in many cities remain stable or rise slightly – even in the face of economic fluctuations. Properties in good locations with solid substance and good transport links will retain their value or even become more attractive in the long term.
Decentralization: No retreat to the countryside – but smart networking
However, the solution does not lie in further densification of inner cities – but in targeted equalization through smart decentralization. This does not mean sending people to nowhere. It means upgrading the surrounding area as an attractive place to live, opening it up to transportation and connecting it economically.
Many smaller towns and municipalities around conurbations offer a high quality of life, but are not yet sufficiently connected. This applies to both local public transport and the road infrastructure. Those who rely on cars should not automatically be seen as part of the problem – mobility must be allowed to remain individual if it is conceived efficiently and sustainably.
Transport policy: between ideology and reality
The current discussion about car-free cities and driving bans falls short of the mark. A complete
If you seriously want to decentralize, you have to think about infrastructure – roads, railways, broadband, education. This is the only way to create real alternatives to overcrowded inner-city apartments.
Investment opportunities at a glance:
- Long-term rental demand in cities and surrounding areas
- Stable value of locations through infrastructure projects and mobility connections
- Attractive entry-level prices in peripheral locations with development potential
- Sustainable concepts and land use as a differentiating factor
Conclusion: Housing remains a strategic asset – even beyond the city centers
In this tense situation, investors have a clear mandate: to create living space where people want to live – not just where space is tight. This means thinking, planning and not only building, but also connecting.
The future does not lie in the city center alone – but in a network of many easily accessible locations that offer an urban quality of life outside the big city.
We support investors in the analysis, development and implementation of sustainable residential concepts – in cities, in the surrounding area and in locations with potential.