Data-driven investment analysis of the German rental market
Unlocking the best performing single-family rental housing in Germany
Germany has strong demand for housing in the “Top 7” cities
Within Europe, Germany has some of the highest demand for rental housing in its “Top 7” cities which include Hamburg, Dusseldorf, Cologne, Frankfurt, Stuttgart, Berlin and Munich. Driving this demand is strong population growth, high volumes of renters and a preference for smaller household sizes:
Strong population growth
Population growth in Top 7 cities vs. rest of Germany
High % of rents
Distribution between owners and renters
GDP and employment growth indicate significant opportunity
As an example, we’ve identified that Cologne’s GDP and employment growth has steadily outperformed the German average. Between 2005 and 2020, Cologne’s GDP grew at a compound annual growth rate (CAGR) of 1.52% compared to the German average, which stood at 1.04%.
During the same period, Cologne’s employment grew at a rate of 1.47%, versus the German average of 0.88%. These are indicators that support a capital and rent growth opportunity, not only in the Cologne market, but also in its surrounding areas. In many areas of Germany, high rental price growth continues to outstrip supply and this growth isn’t limited to its cities.
Cologne and Rhein-Erft-Kris
are prime rental districts
Taking Cologne again – where rentals make up 71.9% of housing – and one of its neighbouring commuter districts, Rhein-Erft-Kris, as an example: the growing demand for rental properties within these two districts has resulted in rental price growth of 12% over the past five years and a significant drop in the average time it takes for an apartment to rent, falling from around 10 weeks to around five weeks in Rhein-Erft-Kreis, and from around six weeks to around three weeks in Cologne. With population and disposable incomes forecast to grow annually by 1.2% and 1.0% respectively over the next 10 years, demand and rental prices will continue to drive upwards in both regions.
Hamburg SFR portfolio
Hamburg is one of the most promising rental cities in Germany, however investors are unable to source dispersed SFR assets at attractive prices and aggregate them into scalable portfolios. This is only made possible using our end-to-end platform, with tech-enabled efficiencies across the entire residential value chain.
Our automated lead generation and filtering reduces the ‘time to inspect’ from 7 days to 1 day
A – Analysis at scale: >20,000 leads generated through D2C, broker partnerships and scraping listing websites.
B – Accurate de-duplication: Consolidation and analysis of 15+ data sources to gain complete market coverage.
C – Data enrichment: Location and macro data overlay is used to advance asset analysis.
D – Yield estimates: Yields estimated pre-inspection to identify high value investments.
We identified over 75,000 unique leads, providing scale of leads to deliver on bespoke investment criteria according to investor demand.
For IMMO’s investors, this has resulted in:
Map of our Hamburg leads
27,000+ | €20bn
Properties using IMMO’s proprietary technology
1,000+ | > €422m
Conducted in-person by our local team of experts
Annual acquisition run rate
For residential assets across Germany
Assets under management
Portfolio occupancy rate
Across acquiried assets in Germany
Average gross entry yield across acquired properties
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vs. UW +16.3%
Achieved gross yield
Reventlowstrasse 30 (Othmarschen)
vs. UW +4.3%
Achieved gross yield