The German residential property market is traditionally considered multi-faceted and complex within Europe. In response to this heterogeneity, Lübke Kelber has published the White Paper "The ABCs of the Housing Market". This publication represents the first scientifically-backed residential market classification for a total of 135 German cities. The aim is to establish a standardised frame of reference for the residential property market, thereby creating clearer guidance for investors, portfolio holders and financing institutions.
The new classification is intended to significantly improve the comparability of residential locations within Germany. This applies to research work, concrete investment decisions and general market understanding. Previously, the structural particularities of the housing market were often insufficiently considered in broader market analyses. This led to challenges, particularly for less specialised participants, and could increase the risk of strategic misjudgements. Lübke Kelber's White Paper closes this information gap through an independent perspective on residential aspects.
Definition of city hierarchies and new suffixes
The study's methodology links demographic, economic, real estate and location-specific factors. The result is a system defining three city hierarchies: A (International Investment Grade), B (National Investment Grade) and C (Regional Investment Grade). This categorisation allows for a more precise assignment of cities based on their residential characteristics and their relevance for various investment profiles.
This system is supplemented by the newly introduced location suffixes "Metro" and "Uni". The "Metro" suffix clarifies commuter links with metropolitan regions, while "Uni" highlights the significant importance of universities for local housing demand. In its analysis, Lübke Kelber identifies 14 A-markets, 40 B-markets and 81 C-markets purely from a residential perspective.
- —Berlin
- —Bremen
- —Dortmund
- —Düsseldorf
- —Essen
- —Frankfurt a.M.
- —Hamburg
- —Hannover
- —Cologne
- —Leipzig
- —Munich
- —Nuremberg
- —Stuttgart
Mark Holz, Head of Strategy and Research and author of the study, emphasised that the goal was not to develop another ranking, but to create a common language for the housing market. He explained that sound investment decisions could only be made through systematic market comparability. Mac Sahling, CEO of Lübke Kelber, underlined the relevance of the study for market participants by stating that the White Paper provides investors and portfolio holders with an essential tool that offers guidance and supports long-term decisions.
