Wiesbaden tops real estate investment ranking

For those investing in real estate, forget the sexy, better-known cities like Munich and Hamburg. The biggest rate of return on property is in Wiesbaden, according to a new ranking just published in manager magazin.

Wiesbaden tops real estate investment ranking
Photo: DPA

The city, located in the state of Hesse on the Rhine River, topped the attractiveness ranking because property investors there can expect a gross initial rate of return of seven percent if the property is in a good location.

Following Wiesbaden on the list were Aachen, Freiburg, Frankfurt and Berlin.

Munich, one of Germany’s wealthiest cities, only ranked number 13. Düsseldorf did slightly better in the 10th position. But in both of these cities, an apartment house in a good location will only bring a gross initial rate of return of around five percent.

When other purchasing costs and administrative fees are taken into consideration, investors can only expect a net return of around three percent, less than the return on a 10-year German bond.

The list ranked the 25 top German markets and was based on data from real estate company Engel & Völkers as well as purchase and rental trends in various regions around the country. Besides the initial rates of return and price direction, the ranking also looked at the overall attractiveness of the property market and whether demand outstripped supply.

Other factors used in compiling the list were a city’s overall economic environment and local population growth.

The Local/kdj

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Four injured as WWII bomb explodes near Munich train station

Four people were injured, one of them seriously, when a World War II bomb exploded at a building site near Munich's main train station on Wednesday, emergency services said.

Smoke rises after the WWII bomb exploded on a building site in Munich.
Smoke rises after the WWII bomb exploded on a building site in Munich. Photo: picture alliance/dpa | Privat

Construction workers had been drilling into the ground when the bomb exploded, a spokesman for the fire department said in a statement.

The blast was heard several kilometres away and scattered debris hundreds of metres, according to local media reports.

Images showed a plume of smoke rising directly next to the train tracks.

Bavaria interior minister Joachim Herrmann told Bild that the whole area was being searched.

Deutsche Bahn suspended its services on the affected lines in the afternoon.

Although trains started up again from 3pm, the rail operator said there would still be delays and cancellations to long-distance and local travel in the Munich area until evening. 

According to the fire service, the explosion happened near a bridge that must be passed by all trains travelling to or from the station.

The exact cause of the explosion is unclear, police said. So far, there are no indications of a criminal act.

WWII bombs are common in Germany

Some 75 years after the war, Germany remains littered with unexploded ordnance, often uncovered during construction work.

READ ALSO: What you need to know about WWII bomb disposals in Germany

However, most bombs are defused by experts before they explode.

Last year, seven World War II bombs were found on the future location of Tesla’s first European factory, just outside Berlin.

Sizeable bombs were also defused in Cologne and Dortmund last year.

In 2017, the discovery of a 1.4-tonne bomb in Frankfurt prompted the evacuation of 65,000 people — the largest such operation since the end of the war in Europe in 1945.