Bavaria: Kemper's forecasts increasing rents for retail shops
The agent and consultancy Kemper's has researched the retail property market for Bavaria's 20 most important cities. According to Kemper's, the crucial factors for property investments in the top 20 locations increased an average of 3.5%. Munich is the top rider with 26 times the net annual rent, followed by Nuremberg (18) and Augsburg (17.5). The beginning gross yield in medium-sized cities is currently between 6.0 and 6.5%, in smaller cities between 6.25 and 7.75%.
Rents gain 1.5% in 2007
For 2007, Kemper's forecasts an average rent increase of 1.5% for Bavaria's 20 most important retail locations. With a plus of 4.5% to €115/m², Nuremberg is the strongest. In Munich, which has the country's highest rents for retail shops and also belongs to the top 10 internationally, the price per square meter in 2007 increased 4% to €260. According to Kemper's, collective retail rents in Munich have increased more than 40% in the past ten years.
Among cities with 100,000 to 150,000 residents, Würzburg is the top rider at €95/m², followed by Ingolstadt (84), Regensburg (70), Erlangen (59), and Fürth (32). In the 50,000 to 100,000 category, Bamberg and Rosenheim dominate with a top rent of €65/m². Rents in Aschaffenburg, Passau, Landshut, and Kempten are between €40 and €50/m². With a top rent of €30/m², Bayreuth's performance in this category is somewhat weaker. In contrast, Straubing and Hof achieved good high rents at €40/m², despite a lower number of residents. A reason that small cities also have high rents is their above-average centrality. As a rule, rents are more than two-thirds over the national average in Bavaria's top 20 locations.
Rosenheim, where rents have climbed one-fourth in the last ten years and, from the point of view of Kemper's, will climb 5% in 2007, appears to be up-and-coming. When looking at Bavaria in comparison to the rest of the country, Munich's top locations reign supreme, followed by Nuremberg in fourteenth place.
Factors increase an average of 3.5%
Sales price factors gained 3% in 2007 and correlate clearly with city size. Munich is the top rider with 26 times the net annual rent, followed by Nuremberg (18) and Augsburg (17.5). Würzburg, Ingolstadt, and Regensburg, but also noticeably smaller cities like Bamberg and Rosenheim, achieved results over 16. In 2007, investors must spend more than 15 times the net annual rent for first-class properties in 1A locations in Aschaffenburg, Erlangen, Landshut, and in the noticeably smaller Straubing.
Parameters of the ten strongest retail locations in Bavaria
| Rank | City | 2007 Rent (€/m²) | Rent Trend (%) | 2006 Factor | 2007 Factor | 2007 Beginning Gross Yield |
| 1 | Munich | 260 | +4.0 | 25 | 26 | 3.85 |
| 14 | Nuremberg | 115 | +5.9 | 17 | 18 | 5.56 |
| 24 | Würzburg | 95 | +0.0 | 16.5 | 16.5 | 6.06 |
| 34 | Ingolstadt | 84 | +3.1 | 16 | 16.5 | 6.06 |
| 35 | Augsburg | 82 | +6.1 | 16.5 | 17.5 | 5.71 |
| 52 | Regensburg | 70 | +0.0 | 16 | 16 | 6.25 |
| 54 | Bamberg | 65 | +6.7 | 15 | 16 | 6.25 |
| 55 | Rosenheim | 63 | +6.7 | 15 | 16 | 6.25 |
| 65 | Erlangen | 50 | +0.0 | 15.5 | 15.5 | 6.45 |
| 63 | Aschaffenburg | 50 | +7.1 | 14 | 15 | 6.67 |
(Rank: from 185 researched locations nationwide; factor: statistic for the value of property [factor x annual net rent = purchase price]; source: Kemper's.)