Germany Property Management Market expected to grow with CAGR of ~4% by 2028: Ken Research
The industry includes the management of residential and commercial real estate and land for third parties. These activities also include the fiduciary management of buildings for the community of owners of condominiums located there. Cleaning services, maintenance and minor repairs, waste disposal, and the provision of guard and security services are not industry-related.
STORY OUTLINE
- Competitive landscape of the Germany Property Management market, which are making it, grow higher.
- Trends in Germany Property Management market which are exaggerating the market by various key players.
- Factors driving the Germany Property Management market are the growing investments in the market.
- According to Ken research, the Germany Property Management market at a CAGR of ~4% during the forecast period (2023-2028).
1. Growth of Germany Property Management market is getting higher with ~4% CAGR.
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Germany Property management market is a growing industry in Germany due to various factors. It is growing with a CAGR ~4%. The growth in German facility management services is attributed to the increasing demand for customized in-house and outsourced facility management solutions. Moreover, the rising number of commercial and residential buildings in major cities pushes the demand for facility management services across the country.
Businesses providing residential property services benefit from price increase and new construction and 26% more people working in intermediation, sales, and management (2014-2017). There is an increase in the turnover of real estate agencies, after the introduction of the “ordered principle” for rented dwellings by the Federal Government of the country.
Residential property agencies increased their turnover from EUR 6.73 billion to EUR 8.49 billion (2017). Real estate agencies are benefiting from the rising prices of dwellings and houses.
2. Which are the driving factors for the growth of Germany Property Management market?
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The driving factors, which are growing the Germany property management market, are the growing investments in commercial properties are expected to increase the region’s demand for facility management services. It is quite evident with the recent developments happening in the country. Additionally, rapid infrastructure development and the rising focus on integrated facility management services are anticipated to positively influence the German facility management market over the coming years.
In 2018, real estate activities accounted for 10.5% of the total German GVA (Gross Value added). Real estate activities were in the top 5 economic activities in Germany, in terms of output generated. Gross Value Added: Real estate activities’ revenue was amounted to EUR 82.282 billion in September 2019. This records an increase from the previous years’ value of EUR 80.715 billion. Investments toward real estate have been increasing.
3. Trends which are hyping the growth of Germany Property Management market
Germany Property management market is growing with help of the various trends happening in key players. Trending developments in the market include many innovations and acquisitions ventures.
Intel announced to invest of USD 20 billion to begin constructing eight chip plant facilities in Belgium, Germany, France, and the Netherlands in early 2021. Such developments are driving more opportunities for vendors to have security services for facility management.
Germany is one of the leading European countries in the Fintech market. Start-ups are often the driver of innovation, bringing new and disruptive products and services. As of September 2019, there were 202 property Fintech start-ups in Germany, targeted at the real estate market. PropTech includes solutions, such as online listing services, mobile apps, property management SaaS products, and crowdfunding platforms, among others.
In August 2021, Google is opening a new Google Cloud region in Berlin-Brandenburg, with investment plans in renewable energy. The company plans to further invest in Germany’s transition to a digital and sustainable economy. The company plans to invest approximately EUR 1 billion in digital infrastructure and clean energy by 2030.
4. Outlook of Germany Property Management market is expected to grow higher
Germany property management market is growing in the market value every year and is expecting to grow exponentially in upcoming years. Research shows the CAGR of ~1.4% in 2018-2022 forecast period and ~4% CAGR in 2022-2028.
There are many solutions which utilize data analytics, in order to help users make intelligent decisions when it comes to buying, selling, leasing, or investing in real estate, simplifying property management, or marketing their products in the industry are popping which will contribute to a great deal in the market.
