Importance of Real Estate as Retirement Savings
The study by Kantar, which indicates that three-quarters of respondents in Germany consider their own property as the preferred form of retirement savings, reflects a deeply rooted preference for home ownership. This attitude is particularly relevant against the backdrop of current market developments and economic uncertainties.
Market Development 2024/2025
In 2024, the selling prices of condominiums as well as single-family and multi-family homes fell again compared to 2023. The decline was particularly pronounced among multi-family homes with a decrease of 3 percent compared to the previous year (condominiums: -1.5 percent; single-family homes: -1.6 percent). However, the first quarter of 2025 shows a slight recovery: Prices for condominiums were up by 1.1 percent compared to the previous year; single-family and two-family homes even became 2.9 percent more expensive. Experts see this as a sign that the German real estate market is slowly stabilizing.
Economic Uncertainties and Investment Decisions
Economic uncertainties such as inflation or interest rate hikes influence the investment behavior of private investors. Nevertheless, the demand for owner-occupied housing remains high – particularly as a protection against rising rents and to secure living standards in old age. The current political developments with planned measures such as reduced bureaucracy in new construction or government investments could additionally provide positive impulses.
Comparison to Other Forms of Retirement Savings
While traditional products such as Riester pension contracts continue to be widespread (around 15 million contracts by the end of 2024), many people are seeking alternative ways to save privately – including ETFs or buying their own property.
| Form of Savings | Popularity/Distribution | Strengths | Weaknesses |
|---|---|---|---|
| Own Property | Very High | Value Stability, Utility | High Initial Investment |
| Riester Pension | High (15 million contracts) | State Subsidy | Complexity/Costs |
| ETF Savings Plans | Growing | Flexibility | Volatility |
Conclusion
Real estate acquisition remains a central pillar of private retirement planning in Germany. Despite short-term price declines in the market, this form of investment continues to be preferred by a large majority – not least because of its long-term value stability and practical utility in everyday life as well as in retirement.