Will Demographic Developments Affect Office Properties More Strongly Than Residential Properties?

Prof. Dr. Michael Hüther and Prof. Dr. Michael Voigtländer

By the year 2060, roughly 15 million fewer people will live in Germany. What is more, the number of elderly people will rise considerably, whilst the potential workforce is set to decline. These changes will also have an effect on demand for real estate. Because elderly people use more living space on average, however, and the number of households will rise at first, the impact on the residential property market is not expected until between 2025 and 2030. By contrast, more pronounced effects are expected on the office property market in the not too distant future, although forecasts are subject to considerable uncertainties. It is also important to note that there will be distinct regional differences.