Property valuation in Cologne

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When does a property valuation make sense?

In a property valuation, the probable selling price achieved in the current market is determined. Knowing this value makes sense for you for various reasons:

1. Reach suitable buyers

2. Achieve the highest price in line with the market

A sales price that is too high can frighten potential buyers, while a sales price that is too low leads to a sale below value.

3. Choose the right time

A property valuation provides information as to whether this is the right time to offer your property for sale.

4. Inform banks

Banks need the market value for granting loans.

5. Calculate taxation

Taxation is based on the market value of the property.

6. Planning future investments

If you know the likely sales price, you can plan future investments better.

7. Basis for divorce and inheritance disputes

We use property valuation to create an individual marketing and sales strategy for your property.

The real estate valuation

The market value is determined in accordance with certain specifications. These are written down in the “Verordnung über die Grundsätze für die Ermittlung der Verkehrswerte von Grundstücken” (ImmoWertV for short). The following criteria are analyzed during property valuation.

-Size of the property

-the condition of the building from the outside/inside

-year of construction

-building substance

-Renovations already carried out

-the equipment of the sanitary facilities

-the technical equipment

-energy standard

-the development potential of the property

for example a removable roof blank

-Sales prices of similar objects

-Size of the property

-Condition of the land plot

-Soil reference values of the environment

-the layer (macro and micro layer)

-the development potential of the situation

-vacancy rate

-tenant perspective

-Rent per square metre

-legal framework

for example: Is the property located in a milieu protection area?

After the analysis of the individual criteria, they are put into interaction with each other. The more promising the individual points and the better the interactions, the greater the demand and the higher the prices. Your property will also be compared with similar properties that have already been sold. The price per square meter of the objects is adjusted by the unique conditions of your real estate and multiplied by the number of square meters of your object. An individual selling price is created.

Three procedures are regularly used for the determination: The comparative value, capitalized earnings value and tangible value method.

Property types

The valuation must not only take into account the criteria and comparable properties mentioned, but also the type of property. The focus of interested parties varies according to the type of property. Some types of real estate are more suitable for investment, others for own use. In the case of rented properties, factors such as the vacancy rate, tenant perspective or rent per square metre play a role. In a family-friendly terraced house, green spaces and proximity to educational institutions are more important than in a penthouse for business people. Sanitary facilities and technical equipment play a major role here.

A property valuation is therefore a complex process in which several criteria play a role and you also have to be familiar with analyses and different procedures.

Our real estate agency AB Real Estate GmbH will be happy to evaluate your property in Cologne! We will also be happy to assist you as a personal and professional partner in a subsequent sale.

Cologne – the most famous town in the world

Location and connection 

The independent city of Cologne is located in the west of Germany on the Rhine. Together with Bonn, the region is the centre of the conurbation between Kölner Bucht and Oberbergisches Land. For more than 2,000 years, the city has benefited from its perfect location on the river and access to important west-east trade routes. The Benelux countries can be reached quickly from Cologne. Cologne is a traffic junction. The city has an extensive long-distance rail passenger service, such as one of the largest container handling stations in Europe – the Eifeltor railway station. The Rhine metropolis offers four inland ports and Cologne/Bonn Airport. The latter recorded 12.4 million passengers in 2017 (+7% year-on-year). Public transport KVB ensures rapid progress in the city and is a member of the International Charter for Sustainable Development. Cologne also offers 2,000 City Bikes and Carsharing models.

Inhabitant

Cologne is the most populous city in North Rhine-Westphalia and the fourth largest city in Germany. North Rhine-Westphalia is also the most populous and densely populated federal state in Germany. As of December 31, 2017, 1,080,394 people were living in Cologne. 8.6 million people live in the Rhineland Metropolitan Region and 10 million in the Rhine-Ruhr Metropolitan Region. There are 17 million people living within a 100km radius of Cologne. According to the “New Cologne Statistics”, 1,146,100 people will live in the cathedral city by 2040. Because Cologne registers a high birth rate as well as immigration. 31% of newcomers come from abroad (New Cologne Statistics). In Cologne, 426,646 people have a migration background (as of 2018). The most represented nations are Turkey, Italy and countries from the Western Balkans. People from 180 different nations live in the Rhine metropolis. Most newcomers are between 18-30 years old, the average age in Cologne is currently around 41.9 years. The average household consists of 1.88 persons.

Economy

The Hanseatic City of Cologne is the top location for many economic sectors. With its perfect location on the Rhine and access to trade routes, Cologne is an ideal logistics location. The city is considered an industrial, insurance, craft and service metropolis. 83% of Cologne’s inhabitants work in the service sector. Other major fields are the chemical, pharmaceutical and automotive industries. More than 250 companies are active in the chemical and pharmaceutical industries and employ 70,000 people. 22% of German chemical sales are generated in Cologne. Important companies include Lanxess and Bayer. Biotechnology, the digital economy and the life science sector also give the Cologne economy a diverse and strong face. The automotive industry is based in Cologne with top brands such as Ford, Toyota, Citroën, DAF, Mazda and Renault. Ford alone has 18,500 employees. Cologne is also an important media city. Companies such as RTL or WDR produce their content on the Rhine. There are also 70 publishing houses, 600 TV production companies and 2 media colleges in Cologne. 58,000 people earn their living in the creative industries. New media, art and fitness products will also be exhibited at the well-known trade fairs “Photokina”, Gamescom, Art Cologne and FIBO. The North Rhine-Westphalian metropolis is also a formative trade fair city. Innovations are written in capital letters in this historic city: 13,000 people work in start-up companies in Cologne. In the urban area alone, 650 digital start-ups generate 1 billion euros. The metropolis is the No. 1 investment location in Germany. 28.5% of all foreign direct investments flow to Cologne. The gross domestic product per employed person was 85,127 euros in 2018 and disposable income per capita was around 21,600 euros in 2016. According to the Federal Employment Agency, the unemployment rate in 2016 was 8.7%.

Education

Cologne offers a comprehensive range of educational opportunities. Many young people are attracted to study in the big city. The University of Cologne has approximately 85,000 students, making it the largest university in Germany after the LMU in Munich. The Cologne University of Technology has a further 25,000 students. Sports are particularly popular in Cologne. The number of schools in Cologne continues to grow. As of 2019, there are 277 schools, but numerous new construction projects are planned. In the current business plan, 168.2 million euros are earmarked for the area of “new construction, extension and general overhaul”. Cologne also offers an adult education centre, a municipal library and a conservatory. Due to the 180 different nationalities in the Rhine city, there is also an offer of international schools, among others the “Cologne International School” and the “St. Georges School”.

Tourism

In 2018, the record number of visitors in 2017 was exceeded once again. There were 3.7 million arrivals (+3% year-on-year) and 6.29 overnight stays (+0.7% year-on-year). Since 2005, the average number of overnight guests has been 2,784,333, with 4,893,103 overnight guests (Landesbetrieb Information und Technik NRW). About 265 accommodations are operated in Cologne. The gross turnover of tourism in the metropolis amounts to 6.7 billion euros annually. The Archbishopric of Cologne is known above all as a carnival stronghold, for the Old Town and Cologne Cathedral. The city also offers a comprehensive range of museums such as the Roman-Germanic Museum. Also worth a visit are the church “Groß St. Martin”, the castles of Brühl or the zoo. The world-famous trade fairs also attract a large number of visitors.

Culture and Leisure

Cologne is one of the most liveable cities in Germany and is also known as the “largest and most famous small town in the world”. The cultural metropolis combines a strong sense of community and meeting points with internationally significant attractions. At number 1, of course, is the annual carnival. Cologne is also one of the European Capitals of Culture. The Film Festival Cologne or the Literature Festival lit.COLOGNE takes place in Cologne. The Ludwig Art Museum is also popular. In the Schauspiel Köln, the Opera or the Philharmonie you can experience art at the highest level. The art and comedy scenes also play an important role. We recommend the weekly show “Nightwash”, in which young comedians perform in a launderette. Size events can be visited in the Cologne or Lanxess Arena. Sports enthusiasts cheer on the 1st FC Cologne or let off steam in one of the countless sports clubs. The many parks like the Rheinpark, the Grüngürtel or other resorts like the Wahner Heide invite you to stay. If you’re more attracted to the city, you’ll like the Rheinauhafen area. In the relatively new quarter you will find the famous Kranhäuser and on weekends you can spend your time on design and creative markets. Picnics are highly recommended on the bollard meadows opposite. The Rhine metropolis has a lot to offer in terms of culinary delights. In the breweries “Päffingen”, “Sion” or “Unkelbach” you should try the typical Kölsch. Good coffee can be found in the Café “Rotkehlchen”. The chocolate museum in Cologne is well known throughout Germany. There are a total of 1,188 restaurants in the big city, the “Pastabar” or the “Ecco” restaurant are recommendable for example. In the evening you can have a good drink in the bar “Sixpack” or in the “Hanging Garden”, before you go dancing in the “Venus Celler” or “Underground”. The City of Cologne is also very active in climate protection and promotes many projects and ideas.

Real Estate Market Report Cologne

Real Estate Market Report Cologne 2019 

In 2018, 8,049 transactions were carried out. Fewer sales were concluded than in the previous year. However, at 5 billion euros, sales were up +4.3%. This is mainly due to the fact that the real estate market in Cologne is almost empty, but demand is very high. Cologne is a city with a high quality of life that attracts more and more people. The population growth between the years 2007-2017 was around 10%. In addition, the Rhine metropolis is a stable location for investors.

Real Estate Market Report Condominiums Cologne

With a share of 65%, the residential property market is the largest submarket in the residential property sector. In 2018, 5,103 contracts for residential and part ownership were signed. Due to scarce supply and strong demand, 461 fewer cases were closed compared to the previous year. Prices rose between 2017 and 2018. In the new condominium segment from 4,542 to 4,895 euros per square metre, in the existing segment from 2,846 to 3,150 euros per square metre (Expert Committee for Real Estate Values Cologne). The highest prices per square metre are achieved for apartments up to 30 m² and for freehold flats from 120 m². In year of construction classes, apartments built before 1918 and new apartments are particularly popular. The land values of building plots for residential property are 60% higher in relation to building plots for other types of real estate.

Real Estate Market Report Multiple Family Houses Cologne 

The prices for multi-family houses in Cologne depend particularly on the location. The city centre and western locations are particularly popular. Objects built before 1918 are also attractive. In 2018, 596 apartment buildings were sold. A turnover of 1.08 billion euros was achieved (Expert Committee for Real Estate Values Cologne). The rents are around 11 euros per square metre for existing apartments and 13 euros per square metre for new apartments. The forecast for 2019 is for an average initial rental of EUR 13.5 per square metre (DZ HYP Immobilienmarktbericht 2018/19). It would then be a change of 3.8%. Between 2007-2007, the first occupancy rent increased by 23%. However, the rent has risen least in Cologne compared to the other top 7 cities. The lowest prices are achieved by rental apartments with 61-90 square meters, the most expensive by rental apartments up to 30 square meters. Building plots in good locations cost around 1,000 euros per square metre.  

Real Estate Market Report Own Home Cologne

In 2018, 1,525 detached and semi-detached houses were sold in Cologne (Gutachterausschuss für Immobilienwerte Köln). A turnover of 690 million euros was achieved. A detached house costs around 751,670 euros (existing) and 771,935 euros (new). One terraced house is 448,759 euros (existing) and 467,042 euros (new). A semi-detached house can be purchased for 520,997 euros (existing) and 589,118 euros (new) (market report 2018 of Kreissparkasse Köln). The prices for existing real estate rose by 13%. In top western locations there was a price increase of around 15.5% for owner-occupied homes (market report 2018 by Kreissparkasse Köln). Popular home locations are Junkersdorf or Egelspfad. But even in moderate locations homes of one’s own cost 200,000-400,000 euros. The most affordable homes are those built in the years 1950-1989.

Real estate market report Cologne commercial sector

After Düsseldorf, Cologne is the top shopping location in western Germany. Cologne benefits above all from the many tourists, the large conurbation and the high occupancy factor of the residents in the city. The supply of retail space in Cologne is comparatively good, which is why Hohe Strasse had to struggle with vacancies. The top rent in 2019 is around 255 euros per square metre (DZ HYP Immobilienmarktbericht 2018/19). The retail trade in Cologne is very much focused on the consumer sector, but there are strong trend and luxury locations. Current projects include the redesign of the DuMontCarreé or the Jacobi department store. Compared to retail properties, Cologne has a very scarce supply of high-quality office space. The current office stock is approximately 7,710 m². Especially the market in the city centre is empty. Combined with good demand, the vacancy rate fell to 3.2% and continues to decline. Large deals were rather less concluded due to the scarcity of supply. The top rent in 2019 is almost 22 euros per square metre, a change of +2% compared to the previous year.

Real Estate Market Report New Building Cologne 

In Cologne only very few building plots are still available, but the demand and the need for plots is very high. This is driving up building land prices. From 2017 to 2018 there was an increase in building land prices of around 10% in the urban area. The prices of multi-family house properties have risen by 15%, those of office properties by 10-15% (market report 2018 of Kreissparkasse Köln). The average value for building plots is approximately 630 euros per square metre. Due to the great demand, building permits are increasingly being issued. However, the completion of new buildings is lagging behind. Between 2007 and 2017 there was an increase of 64,000 private households, the cumulative completion of apartments amounts to 30,000 (DZ HYP Immobilienmarktbericht 2018/19). The average annual completion rate per 1,000 inhabitants in Cologne between 2011-2016 is 3.2. The focus is on multi-storey residential construction. The least number of new detached and semi-detached houses are being built. The annual completion rate per 1,000 inhabitants of this type of property is 0.6. New apartments cost around 5,000 euros per square metre. The average rent for new buildings in Cologne is 13 euros per square metre.

Top locations Cologne

Urban division Cologne

The city of Cologne is divided into 9 districts and 86 districts. Some districts, such as Rodenkirchen or Lindenthal, give the district its name. In Cologne, a distinction is often made between the right bank and the left bank of the Rhine. The right bank of the Rhine is often called the “Schäl Sick”. The left bank of the Rhine is generally more popular, but properties on the right bank promise high returns.

Innenstadt

The inner city is one of the 9 districts of Cologne and bears the number 1. The inner city comprises the Altstadt-Nord, the Altstadt-Süd, Neustadt-Nord and Neustadt-Süd as well as Deutz. In the city center live stand 31.12.2017 129.108 inhabitants. The city centre is the historical centre of Cologne and famous for its numerous sights. These include the Old Market Square, the Hohenzollern Bridge and Cologne Cathedral. Several well-known museums such as the Roman-Germanic Museum are located in the city centre. The Rheinpark offers relaxation. The Messeplatz is also located in the city centre. Important trade fairs such as Gamescom and FIBO are held here. A condominium in the city centre has an average price per square metre of 4,834 euros in the existing building and 6,240 euros in the new building. The price peaks for a condominium are 7,847 euros per square metre (existing) and 8,682 euros per square metre (new). The rents are 13.37 euros per square metre for existing apartments and 15.34 euros per square metre for new apartments. The highest rents cost 20 euros per square metre (existing buildings) and 20.53 euros per square metre (new buildings) (market report 2018 by Kreissparkasse Köln). The standard land values for single and two-family house properties with an average size of 350 square metres are 900-1,000 euros per square metre. (Expert Committee for Real Estate Values Cologne)

Lindenthal

The Lindenthal district is located in the Lindenthal district in the west of the city. The district has 30,481 inhabitants (as of December 2017). Lindenthal is well known for its greenery like villas and attracts young and old alike. The district is close to the city centre and the University of Cologne. You can get distractions from the hustle and bustle of the city in the Stadtwaldgürtel, Tierpark or Stadtwald. In addition, Lindenthal offers several beautiful ponds, such as the Decksteiner, where you can play miniature golf. The Museum of East Asian Art is culturally worth seeing. Shopping can be done on the Dürener Straße. Good cheesecake can be found in “Hinz und Kunz”, a large selection of salads in “Quer durchs Bett”. The restaurant “Carlos” is also recommendable. A detached house (existing) in Lindenthal has an average price per square metre of 6,200 euros. An existing condominium apartment costs an average of 4,900 euros per square metre. A new condominium apartment is sold at a price of 6,800 euros per square metre. Monthly rents in Lindenthal range between 10.70-16.50 for existing properties and between 14.20-20.00 euros in the new construction segment (Immobilienkompass 2019 Capital). The standard land values for single and two-family house properties with an average size of 350 square metres are over 1,100 euros per square metre.

Sülz

Sülz belongs to the Cologne-Lindenthal district and provides a home for 36,687 inhabitants (as of 2017). The district is also known as “Beverly Sülz” and is one of the absolute trend districts in Cologne. The district is green, age-technically mixed, central and has beautiful old buildings. Known are the Auerbachplatz or the Berrenrather Straße for shopping. Good shopping is also possible at the flea market at Unicenter. In the district you can visit the observatory, get creative in the “pottery art café” or watch a film in the Weisshaus cinema. Good breakfast is served in the “Wo ist Tom”, a beer after work in the pub “Wundertüte”. Recreation can be found in Beethoven Park and an excursion to Decksteiner Weiher can be combined with watching trains at the training grounds of the 1st FC Cologne. A single-family house in Lindenthal costs 6,600 euros per square metre (inventory). A condominium has a price per square metre of 3,400 euros in the stock and 5,800 euros in the new building. The rent for existing properties in the district is EUR 11.00-16.80 per square metre and EUR 13.80-24.70 per square metre for new buildings (Immobilienkompass 2019 Capital). The standard land values for single and two-family house properties with an average size of 350 square metres are over 1,100 euros per square metre.

Braunsfeld

Braunsfeld is a district in the Lindenthal district and has 12,070 inhabitants (as of 31 December 2017). The district is quiet and close to the University of Cologne. The Große Braunsfelder Karnevalgesellschaft is one of the largest carnival societies in the city. The area is architecturally enchanting with Wilhelminian style buildings. The city forest offers a lot of greenery. Another “park” worth seeing is the Technologiepark Köln. Braunsfeld offers a lot of culinary delights. The “Köski Royal” has cinnamon snails, coffee, juices and its own type of beer. More well-known is the restaurant “Marienbild”. In the morning you should try the bakery “Ecke”, for more hunger the restaurant “Vincenz” or “Görtz Fisch & Feinkost” is recommended. The standard land values for single and two-family house properties with an average size of 350 square metres are over 1,100 euros per square metre. A house in stock for sale has an average square meter price of 2,744 euros. An apartment for sale costs 4,476 euros per square metre (existing) and 6,852 euros per square metre (new). An apartment in Braunsfeld has an average rent of 12.56 euros per square meter in the existing segment and 14.36 euros per square meter in the new construction segment (capital).

Bayenthal 

Bayenthal lies in the district of Rodenkirchen. The district has a population of 9,947 as of 31 December 2017 and is located on the banks of the Rhine close to the city centre, offering many green spaces. Bayenthal is characterised by its industrial history and is today a popular residential area. The place is architecturally mixed, there are detached houses, villas and condominiums. The flood pumping station is well known. Also worth a visit are the Forum for Photography and the Urban Gardening project “NeuLand”. It is also idyllic in the beer garden “Alteburg” under chains of lights. Good food can be enjoyed in the “Oishi Sushi Club” or in the restaurant “Bracera”. The standard land values for one- and two-family house properties in Bayenthal with an average size of 350 square metres are over 1,100 euros per square metre. In the district, a condominium costs 3,553 euros per square metre (existing) and 5,392 euros per square metre (new). The price peaks are at a price per square metre of 5,046 euros (existing) and 8,682 euros (new). The rents per square metre in the Rodenkirchen district cost 11.20 euros (existing) and 13.22 euros (new). The highest rents per square metre are 16.00 euros for existing apartments and 16.02 euros for apartments in new buildings (market report 2018 of Kreissparkasse Köln).

Marienburg

7,008 people live in the Marienburg district of the Rodenkirchen district. The area is one of the most exclusive residential areas in Germany. Marienburg enchants with its unique architecture, the Südpark or the church St. Maria Königin. The standard land values for one- and two-family house properties in Marienburg with an average size of 350 square metres are over 1,100 euros per square metre. An existing house has a price per square metre of 6,755 euros, a new house costs 3,164 euros per square metre. An apartment for sale has a square metre price of 4,544 euros (existing) and 5,656 euros (new). Apartment rents in the existing segment are 12.52 euros, in the new construction segment 14.39 euros per square metre (capital).

Rodenkirchen

The district Rodenkirchen gives its name to the district. The district has 109,715 inhabitants (as of 31 December 2017). Rodenkirchen has its own town hall and shopping street and looks almost like a small village. Fishing, viticulture and agriculture used to be practised here. The area is especially famous for the “Kappelchen”, the church Alt St. Maternus and the “Alte Liebe”, a floating restaurant. We also recommend the wine and jazz bistro “Verde”. Movement is offered by the Leinpfad, recreation by the Friedenspark or the Forstbotanische Garten. A trip to the wax factory is also worthwhile. A single-family house in Rodenkirchen can be purchased for an average of 4,900 euros per square metre in existing buildings and 4,700 euros per square metre in new buildings. The prices per square metre for a condominium are 4,000 euros per square metre (existing) and 5,200 euros per square metre (new). Rents range from EUR 9.00-13.50 per square metre in the existing building segment to EUR 12.00-14.10 per square metre in the new building segment (Immobilienkompass 2019 Capital). The standard land values for a single/two-family house property with an average size of 350 m2 are more than 1,100 euros per square metre (Gutachterausschuss für Immobilienwerte Köln).

Rheinauhafen

Rheinauhafen is a quarter in the Südstadt district of Cologne, which is located in the inner city district. The quarter has a marina and the distinctive crane houses give it its face. The area invites you to linger through galleries, cafés and bars. Hotspots are the Chocolate Museum or the German Sports and Olympic Museum. The “Wurstbraterei”, which is often shown at the Cologne crime scene, is also located here. In summer Rheinauhafen offers the open air cinema at the marina, in winter the harbour Christmas market. The prices per square metre in the quarter are 6,000 euros per square metre. In the Altstadt Süd district, an existing condominium apartment costs 4,600 euros per square metre; rents for new buildings range between 14.00 and 21.00 euros per square metre.

Riehl

Riehl is located in the Nippes district. 11,945 Cologne residents are at home here. The district is known for its zoo and the magnificent Flora building with its botanical garden and cable car. The round church Dominikus Böhm is also worth a visit. Delicious coffee can be found in the Café “Alsen” or in the “Liebes Herz”. The restaurant “Zippiri” serves up fine cuisine. The standard land values for a single/two-family house property with an average size of 350 m2 are 1,000-1,100 euros per square metre (Gutachterausschuss für Immobilienwerte Köln). An apartment for sale has a square meter price of 3,651 euros (existing) and 3,762 euros (new). The existing rent is around EUR 11.30 per square metre, the new building rent around EUR 12.70 per square metre (capital).

Real estate trends Cologne 2019

Price developments Cologne

Real estate prices in Cologne are rising. The supply of residential real estate and building land is very low, demand is high. The good interest rate situation and the political situation in Germany are spurring interest. In addition, Cologne is very popular as a city and offers great security due to its economic strength and diversity. The universities ensure a mixed age structure and encourage people to move in. From 2017 to 2018, property prices for apartments and houses in NRW rose by 4-8% (Immobilienverband Deutschland). The real estate portal Immowelt predicts a 22% increase in house prices by the end of 2020 with constant interest rates. This is not a real estate bubble as there is an actual shortage of housing in Cologne. The rise in prices in the locations on the left bank of the Rhine is flattening somewhat due to the new building on the left bank of the Rhine, and rents in Cologne are also rising less quickly than purchase prices.

Trends

Similar real estate trends are emerging in Cologne to those in other major German cities. There is an alternative to the cheaper peripheral locations, especially families are attracted to the Cologne area. Apartments with up to 30 square meters are particularly popular in the city. The largest submarket for residential real estate is the condominium market. In the case of commercial real estate, the trend of the coworking concept is very clear.

New building development Cologne 2019

Due to the large shortage of living space, several new construction projects are planned in Cologne. These include the new Kreuzfeld quarter in the north of Cologne, where 2,000-3,000 new apartments are to be built. By the end of the year, a mission statement with development goals should have been drawn up, and the area should be ready for construction by 2023. In 2021, construction will also begin on 3,000 apartments in Deutz Harbour, and 3,500 apartments will be built in Mülheim-Süd. The Ehrenfeld freight station is to offer 80 new apartments by 2021.

Regulations Cologne 2019

In Cologne, there is a rule that 30% of apartments in new construction projects are to be built in subsidised residential construction. In addition, there is a rent brake in Cologne. The rent brake means that the cold rent may not increase by more than 15% within three years. In addition, the rent after the increase may not be more than 10% above the local rent index. New and renovated flats are exempt from the rule. After 5 years the rent brake must be extended. At the moment, the issue of expropriation of housing is very present. In cities such as Berlin, Munich and Cologne, many tenants are demanding that the city expropriate large housing companies. Cologne’s Lord Mayor Henriette Reker, however, does not consider expropriations of apartments in Cologne to be beneficial, as they would deter investors and those willing to build.

Milieu protection Cologne

The City of Cologne is currently considering whether to enact a milieu protection statute in the Severinsviertel. The aim of environmental protection is to protect the original population from being displaced, among other things by too high rents. The Severinsviertel could serve as a model for other milieu protection areas.

Sources: Wikipedia, Wikitravel, Wikivoyage, Stadtportal Köln, Mit Vergnügen, Amt für Stadtentwicklung und Statistik: “New Cologne Statistics 2019”, location.koelntourismus.de, Generalanzeiger Bonn, it.nrw, Kölner Stadt Anzeiger, koelntourismus.de, campus-compass.eu, Immobilienmarktbericht DZ HYP 2018/19, Immobilienkompass 2019 Capital, Marktbericht 2018 der Kreissparkasse Köln, Gutachterausschuss für Immobilienwerte Köln

Comparative value method

The comparative value procedure is a procedure in which your property is compared with similar properties that have already been sold. The average selling square metre price of the other properties is taken as the starting point. This is adjusted by surcharges and discounts according to the individual conditions of your property and multiplied by the number of square metres of your property.

Capitalized earnings value method

In the capitalised earnings value method, the land and the buildings are valued separately. The formula of the procedure is: Yield value=land value+building yield value of the buildings. The building yield value is the gross profit (annual rent / normal rent) less management costs (maintenance, administration, etc.). After this first deduction you get the net yield of the property. If the land value interest rate is subtracted (land value x property interest rate), the net yield of the building is obtained. To get to the building yield value, you have to multiply it by the multiplier. The multiplier is derived from the remaining useful life and the real estate interest rate. The real estate interest rate reflects the future expectations of market participants.

Material value method

As with the capitalised earnings value method, the land value and the value of the buildings are also determined separately in the tangible value method. In the real value method, the land value and the value of the buildings are determined separately. The initial question of this process is: What does it cost to produce the buildings today? The values then determined are subtracted from the reduction in age value and adjusted to the current real estate market. Guidelines for the tangible asset method are set out under “Normal manufacturing costs” under “Status 2010/Normal manufacturing costs 2010” in the “Guidelines for determining the tangible asset”.

SWOT-Analysis

We determine the market-driven maximum price using the comparative value method and comprehensive analyses. One of these analyses is the SWOT analysis. This is otherwise applied to companies. Your property is also a small company that is expensive, complex and unique.

The SWOT analysis determines the strengths and weaknesses, opportunities and risks of the property. Through the knowledge of these, the selling price can be accurately determined and you go prepared in the sale.

Once strengths (“strenghts”), weaknesses, opportunities and threats have been identified, they interact with each other. This shows how strengths and opportunities can be strengthened and weaknesses and risks can be reduced.

Its strengths are, for example, a secure tenant structure, a good building fabric or a popular location. Weak points are high ancillary costs, the need for renovation and traffic noise. Opportunities are a possible upgrading of the area, for example through a new transport connection. One risk is the dismantling of the infrastructure or an upward age shift. Risks and opportunities are environmental factors, strengths and weaknesses object and environmental factors. Political and legal conditions can influence the pros and cons of your property. For example, protected milieu areas or the rent brake are taken into account in the SWOT analysis.

Through the SWOT analysis, we and you get to know your property as closely as possible. This creates concrete ideas and transparency. It also strengthens trust between all parties: You, us and the buyer, whom we can reach through targeted marketing and can clarify all points.

Whether apartment building, condominium or land

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We achieve the highest price for your property in Cologne!

We are looking forward to hear from you!

Make an appointment for a personal meeting now.

Niels Schnatz

CEO

AB Real Estate GmbH – your partner for a professional real estate valuation in Cologne.