The 5% Study 2018 – Where It Still Pays Off to Invest

Residential properties offer hardly any protection from inflation

With the valued support of the BEITEN BURKHARDT law firm and HIH Real Estate GmbH, bulwiengesa has examined the yield potential on the German real estate market for the fourth time. The 5% study, which is being released on 6 September 2018, examines markets in terms of yield.

The results in brief

• Residential property investments offer hardly any protection from inflation
• A office markets: many slip below 3%
• Yields fall significantly again – only shopping centres post increase
• High yields now only in niche markets

Compared to the previous year, yields (IRR) have fallen significantly again in all asset classes – except for shopping centres. This is one of the key findings of the fourth 5% study. “The statement from last year still applies: yield-focussed investors have to switch to niche markets,” says Sven Carstensen, manager of bulwiengesa’s Frankfurt branch and author of the fourth 5% study. These niche markets may include business properties or offices in D cities, for example.

The study also provides detailed information on properties in specific yield ranges such as “6-percenters” or “4-percenters” and extensive lists of individual A, B, C and D cities in different segments, each with property-specific IRRs.

Contact:
Sven Carstensen, carstensen [at] bulwiengesa.de, phone: +49 (0)69 75 61 467 61