"Investor interests in housing sector has increased, with falling vacancies and rising rents expected even in secondary and tertiary locations", – says German realtor Aengevelt. A general lack of supply, particularly of apartments with the right size and layout, will stimulate new construction, it predicts.
Aengevelt found that 42% of respondents expect a fall in vacancies, and the proportion increases to 63% for grade A locations. About 20% predict rising vacancies in tertiary locations and only 15% believe in falling rents. A quarter of the sample expects rising rents, even in tertiary locations, 77% think rents will rise in A locations.
Apartment construction will increase, not only because supply has become scarce. "Investors in new buildings will not have to carry the costs of climate-friendly refurbishments, which are required for existing stock, any time soon," said Schmidt.
Source: http://www.pie-mag.com/articles/1254/rising-interest-in-german-residential-aengevelt/