Hamburg, 12/03/2025 | "Megatrends are the cause and central element of the transformation of entire regions and cities. Understanding them forms the basis for sustainable and future-proof investments", says Dr. André Scharmanski, Head of Research at Quantum. Against this backdrop, Quantum has analysed key megatrends for the housing markets and mapped them out. The interactive maps in the new Focus No. 42 ‘Surveying the Housing Markets’ reveal correlations and provide insights into the development of housing markets – from entire regions down to micro-locations. Quantum thus offers a basis for understanding and interpreting the diverse trend dynamics surrounding the residential asset class.
We are getting older, but the urban population is getting younger.
Europe is aging. However, many cities are getting younger. They are growing mainly due to young immigrants from within Germany and abroad who move there for their studies or jobs. In addition to European metropolises such as Amsterdam, Berlin, Copenhagen, Munich and Vienna, ‘smaller’ German cities such as Heidelberg, Leipzig and Freiburg are also attracting people. This pattern can also be seen within cities: the more central the location, the younger the population. Properties in urban locations with compact floor plans and smart amenities, inner-city residential areas with short distances, well-developed infrastructure and leisure and community facilities are particularly in demand.
We are living closer together, but increasingly individually.
One thing is certain: pressure on the housing markets in major cities will continue. In Germany, for example, the appeal of economic centres such as Berlin, Hamburg and Munich remains unbroken – and is already having an impact on the surrounding areas and rents in the affluent suburbs. To meet the growing demand for inner-city living space, modern forms of housing such as micro-apartments, student residences and serviced apartments are essential. In cities such as Copenhagen, there is correspondingly high potential for new forms of housing.
Statistics show an almost universal shortage of small, flexible forms of housing. This is because around 50 percent of the population in the top eight cities lives alone or in pairs, but the supply of apartments smaller than 60 m² is insufficient. The same applies to age-appropriate housing concepts. By 2040, more than 6.7 million people are expected to be in need of care and up to 1.6 million nursing home places will be required. Here, too, demand far exceeds the current supply.
We need resilient, mobile and equitable cities.
Resilience, mobility and social equity in cities should not be overlooked when making investment decisions. Climate risks, for example, due to increasing extreme weather events such as heavy rain or heat, are also real estate risks. Mobility concepts such as electric mobility and sharing services must also be taken into account in real estate and neighbourhoods. The city of short distances has long been a model that is lived and demanded. In addition, it is clear that urban nightlife is an important location factor. Social justice and affordable housing also contribute to a city's attractiveness. It will be important for the housing industry to take a differentiated view of rental costs and define appropriate target groups for different housing offers.
Focus: All maps and findings also available digitally
The new Focus No. 42 ‘Surveying the Housing Markets’ is available in full length and with all interactive maps at the following link:
focus.quantum.ag
The Quantum Research Team is available to answer questions and give presentations.
