Real estate in Nuremberg in demand as never before
Demand for investments is high in Nuremberg. Last year saw real estate transactions top the one billion euro mark for the first time, after almost doubling in the space of three years. So what has happened? Excellent economic and real estate figures highlight Nuremberg’s status as a healthy and prosperous place to do business.
More and more people want to live and work in Nuremberg. The city’s population is now in excess of 530,000, and with a workforce of 305,000, Nuremberg has more people in formal employment than ever before. Unemployment levels in the city are as low as they have been for more than 25 years. Meanwhile, gross domestic product has been consistently growing for years.
Nuremberg’s real estate market is worth investing in
Property in Germany’s top seven “A” cities (Berlin, Cologne, Dusseldorf, Frankfurt, Hamburg, Munich, Stuttgart), is in ever shorter supply, which is pushing down yields. This is helping to steer investors towards “B” cities such as Nuremberg, where they can enjoy comparatively good yields coupled with stable, secure investment opportunities. The market in Nuremberg features large properties and large transaction amounts. Turnover in office property totalled EUR 375 million, with retail premises accounting for EUR 313 million. Residential property occupies third place, with take-up totalling EUR 230 million, followed by land (EUR 112 million), and industrial and logistics properties (EUR 50 million).
Data creates market transparency
The city's Economy Department has published the 2018 edition of its Real Estate Report and “Building the future” brochure, as well as the investment market report produced in cooperation with Küspert & Küspert. These publications highlight the latest developments on the Nuremberg real estate market and underline Nuremberg’s attractiveness as a real estate and investment market.
The latest figures confirm the continuing levels of demand for land and property. In the housing sector in particular, purchase and rental prices are continuing their vigorous upward trend already observed in recent years. Meanwhile, Nuremberg's office property market is also proving very dynamic. Take-up has never been so high and vacancy rates have never been lower. As shown in the 2018 market report on office rentals produced by Nuremberg-based real estate consultants Küspert & Küspert, take-up in 2017 grew by a further 51 percent to 166,000m² after what had already been a very strong year in 2016. The vacancy rate fell to 4.3 percent.
Cranes dominate the skyline
Kerb-appeal and success are a magnet for investors. The Nuremberg skyline is once again dominated by cranes in 2018, as trend-setting, innovative projects come to fruition. Building activity and investment are booming in Nuremberg, be it innovative office space, state-of-the-art manufacturing facilities or attractive places to live. To ensure that Nuremberg remains a diverse and attractive location in which to live and work, the city’s leaders are busy charting a course for further success. A “masterplan” for commercial premises has been put in place, and there is also a similar programme to promote house-building. Not least, Nuremberg has bid to become the European Capital of Culture 2025.