Stuttgart – October 29, 2026 -- Buying an investment property in your hometown feels safe, but familiarity does not show whether a location will pay off over the long term, says Mark Stühler, managing director of Einfach Immo GmbH.
Jobs, population and students shape rental demand
Stühler and Lucas Botschek, head of the company's Nuremberg location, check which employers are based in a region and whether jobs are spread across several industries. A region with multiple larger employers can usually absorb trouble at a single company more easily. Where many jobs depend on one company or sector, a downturn can hit many people at once. Regions shaped by the automotive industry are one example, but they are not automatically unsuitable if other strong industries exist alongside it.
A stable or growing population and regular new arrivals can support lasting demand for housing, which matters for long-term rentability. Universities can add demand: students move in, and some stay if they find jobs after graduating. When families later need more space, their search may shift from the center to well-connected surrounding towns. Investors should therefore not look only at well-known big cities. A positive regional trend can support rent development, but it does not guarantee future rent increases.
An investor from Sindelfingen shows how risk stacks up
Take an investor from Sindelfingen who works at Mercedes and owns his home there. His income and part of his wealth are already tied to the region, and a second property nearby would deepen that concentration. A property outside the home region is not automatically the better investment, but it can keep regional dependence from growing.
Munich can be attractive and still be the wrong fit
Because of its high price level, Munich may make little economic sense for a specific investor even with a good income. A cheaper location can leave more room for a workable financing plan, as long as long-term housing demand is there. Stühler's point: the goal is not to find the same supposedly best city for everyone, but to find where a sensible investment works under the investor's own finances.
The apartment has to match local tenants
A very large apartment in a city center where mostly small households search can miss demand despite the good location. In a family-oriented region, a small apartment may not find the same interest. Compact apartments can appeal to a broader group of tenants, according to the company, but that does not make them the better choice everywhere.
Einfach Immo now searches beyond Nuremberg and southern Germany
The company long focused on Nuremberg and southern Germany. It now also considers other parts of Germany when their economic and demographic development offers a sound basis for an investment. For distant properties, it works with local contacts such as tradespeople and property managers.