Analysts of the Frankfurt financial services provider Catella from Frankfurt have examined cities with more than 50,000 inhabitants under the magnifying glass and evaluated on the basis of various data regarding the profitability of a real estate purchase. As the Handelsblatt reports, the three front runners are followed by the cities of Potsdam, Hanover, Braunschweig, Wolfsburg, Freiburg, Nuremberg and Erlangen. In the future, it should be most worthwhile here to buy and rent a property. The bottom of the 70 cities studied is Herne in the Ruhr area.
Growing cities with many employees promise returns
The highest weighting in the study was the location potential, with population growth playing a major role here. In the two leading cities in the ranking, Regensburg and Ingolstadt, the number of inhabitants increased by ten percent between 2000 and 2014. However, it is also important that the share of employees subject to social insurance contributions to the total population and their economic power.
As far as the location of the cities in which a property purchase is worth, those who are in an agglomeration, score an important role in their surroundings or are attractive because of their proximity to one of the major cities. For example, Darmstadt, which landed in third place, is only 38 minutes by car from Frankfurt am Main. Cities with a university or local college were also ranked higher.
Top 10 – Catella Housing Market Ranking 2015
Buying a property is especially worthwhile in the north and south
It is striking that among the locations with promising returns with Ingolstadt (1st place) and Darmstadt (3rd place) are two cities whose football clubs have just risen to the top league. However, the study authors consider this to be a coincidence. What the authors of the studies noticed, however, is that the high-performance housing markets are mainly in the north and south of the republic. Nine of the top 25 cities are in Bavaria and Baden-Württemberg. Real estate financing can also pay off in Lower Saxony: six of the top 25 cities in Lower Saxony are among the top 25. The Ruhr area, however, is lagging behind. It is represented six times in the ten worst-rated cities: In Herne, Hamm, Bochum, Recklinghausen, Wuppertal and Duisburg, according to the study, a real estate purchase promises hardly any returns.