High air quality, a well-developed infrastructure or sustainable urban development: Various studies and surveys deal with the quality of life in cities all over the world and use them to create rankings of particularly worthwhile places to live. Again and again, German cities also rank in top positions in international comparison. In the following, we will show you the places in the Federal Republic of Germany that have a particularly high quality of life and explain how this circumstance is related to local real estate prices. You can also find more information on this topic in our Residential Real Estate Market Report Germany 2019/2020.*
Several studies published in 2019 the quality of life in cities around the globe. Examples include the ranking of the English weekly newspaper "The Economist" and the international news and lifestyle magazine "Monocle". The best-known ranking is compiled once a year by the consulting firm Mercer. Even if the evaluation criteria for the cities may differ, there are still overlaps between the individual rankings. For example, only metropolises are considered in all studies; smaller communities, which could possibly have a higher quality of life, are excluded from the evaluation.
In the case of Mercer, the ranking includes a total of 39 factors in ten different categories. These include the political situation, health care, infrastructure, socio-cultural environment, educational opportunities, transport, leisure and recreation, availability of consumer goods, housing, nature and climate.
In order to maintain a high quality of life, cities must be able to develop further and adapt to the challenges of the future. Besides a fast internet connection, important factors for a future-proof city include sustainable architecture and urban development, international research clusters and industrial companies 4.0.
In the Mercer Quality of Living Survey, 231 international cities are assessed for their quality of life. In an international comparison, Vienna has been leading the ranking for the last ten years. However, with Munich in 3rd place, Düsseldorf in 6th place and Frankfurt am Main in 7th place, three German cities are represented in the top 10 most liveable cities worldwide.
The news magazine "The Economist" has a different opinion. Only the cities of Frankfurt (12th place), Hamburg (18th place) and Berlin (20th place) rank among the top 20 most liveable cities. In the "Monocle" ranking, Munich took first place in 2018. Berlin (5th place) and Hamburg (8th place) were also among the top cities in the ranking.
How is the quality of life related to the residential property market? If we summarise the most livable cities in all three rankings and compare them with current property prices, a clear trend emerges: all five cities - Munich, Düsseldorf, Frankfurt, Hamburg and Berlin - are among the 12 most expensive in the condominium segment and among the 16 most expensive in the detached and semi-detached house segment listed in Engel & Völkers' Residential Real Estate Market Report Germany 2019/2020.*
For investors, cities worth living in provide a kind of security, because the sustained high demand for residential space in these locations offers the prospect of positive price development or price stability in the long term. The luxury segment also plays an important role in most cities worth living in. We have summarised for you how property prices are developing in the most important German cities.