Germany may soon compete with London on the international real estate arena. It had long been rated as the rising star of European real estate and now seems to have finally come into its own. European investors, particularly those from Southern Europe, are still drawn to London but are also turning to Germany. CAPITAL Realty has successfully entered London market in the spring of 2016 and now it is ready to enter the German real estate market. Over the last 12 to 24 months, the German economy became much stronger compared to the rest of Europe.

Economic growth initially drew a number of real estate investment pioneers, who have since then been followed by several others. Strong economic development and immigration was the booster of demand in Germany. At the same time, the local markets are reacting to this increase in demand by developing new properties that are attractive to foreign investors.

According to the Federal Institute for Building, Urban Affairs and Spatial Development (BBSR), the growth of households will remain positive through 2025 and will thus ensure additional demand in the housing market.

Such estimates will also affect the real estate brokerage market in the country. In Germany, there are approximately 14,000 full time real estate agencies. Yet the growing real estate supply in the country will increase this number even more.

In private real estate sales, agents are involved in an estimated 50 percent of all closings. The lease of commercial real estate is handled by real estate agents in four of five cases. Overall, real estate revenues in Germany total 150 billion Euros on average every year.

It is the market where we see tremendous potential for its development. Here, the largest global real estate franchises already operate successfully, so the attitude of CAPITAL REALTY franchise towards the quality of brokers’ work and a drive for innovation will help to uphold the positions in the country, which values high-quality quality on every step.

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