Abstract
Many foreign investors start looking at Germany from a macro perspective. However, Germany is not a monolithic real estate market, but consists of very different regions. Some of these differences can easily be tracked back to historical events and phases such as the division of Germany after World War II. In this chapter, the reader will learn more about the economic and social differences characterizing the German regions. Data is presented on current key economic indicators and on the development of some key indicators in the more recent past. The chapter highlights important potential drivers of future developments.
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Notes
- 1.
West Berlin was under the sovereignty of the Western Allies and was neither a Western German state nor part of one. However, it was in many ways de facto integrated into West Germany under a special status.
- 2.
Soviet-controlled East Berlin, despite officially having the same status as West Berlin, was declared the GDR’s capital and its 15th district.
- 3.
More recent data on district-level was not available at the time of publication.
- 4.
Here and in the following analysis, Berlin is allocated to East Germany.
- 5.
The amount of payable commercial tax (Gewerbesteuer) is based on the trade tax assessment base (Steuermessbetrag) and on the individual commercial tax rate (Hebesatz) of each community. The trade tax assessment base is determined by multiplying the corrected trade earning (Gewerbeertrag) of the respective business enterprise with the basic federal rate (Steuermesszahl) of 3.5 %. The resulting amount is multiplied by the commercial tax rate of the community and results in the amount of payable commercial tax.
- 6.
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Just, T., Schäfer, P. (2017). Germany’s Regional Structure. In: Just, T., Maennig, W. (eds) Understanding German Real Estate Markets. Management for Professionals. Springer, Cham. https://doi.org/10.1007/978-3-319-32031-1_4
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