🦜 PerchPulse - Germany Market Update November 2022 🦜

A warm welcome to the November issue of PerchPeek’s Germany Market Monthly update! 

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Here’s where you’ll find the hottest stories around employee relocation and global mobility, insights from our experts on housing and cost-of-living news affecting your staff, the latest trends in international talent strategy, and tips and tricks on ways to support your teams.

A fly-by summary

• A full update on how employee home-finding will slow down in the festive season
• Home price growth slowing could mean things get extra tough for employees looking to rent a place
• The government will debate dual citizenship laws in December - how this could benefit your international talent strategy
• How your Berlin employees can get around the city for less, thanks to the €29 ticket
• Making your staff aware of free festive fun during the cost of living challenges

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Home-finding: Rental searches to slow down during festive season

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The leaves have fallen, the nights are drawing in and the shops are full of woolly garments and shiny gifts…the festive season is upon us! As well as all the fun stuff, it can be a tricky time for house-hunters, with agencies closing for the holidays and the process generally slowing down.

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If you’re supporting employees coming to Germany, you can help manage their rental market expectations at this time of year with this key advice from the PerchPeek Germany team:

• At this point (mid-November), movers who haven’t secured a place to live will now be looking at a January move-in date.

• All businesses, including property agencies, public authorities and service providers such as utility suppliers, will be closed on 25th - 26th December and 1st January.

• Many businesses give their staff a half day on the 24th, since of course Christmas Eve is a big part of the celebration - and especially as it falls on a Saturday this year!

• Some offices (especially public offices) will close as early as the week leading up to Christmas until 2nd January, so movers should aim to get organised in early December.

• Many landlords will also be on holiday throughout this time, during which movers shouldn’t expect to be able to view any properties or for landlords to be reachable.

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Home-finding: Signs of house price growth slowing - possible impact on renters

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A report from the Federal Statistical Office (Destatis) has shown that in the second quarter of 2022, house prices were 10.2% higher than the same period last year. This was the fifth consecutive quarter that prices were up by over 10% year-on-year.

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More recently, however, there have been signs that this growth is starting to slow. A report from Immoscout24 showed that high interest rates mean the number of mortgage applications being made is declining, having a knock-on effect on prices being increased in response to demand.

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While renting is the norm in Germany as opposed to home ownership, it’s worth noting the effects that potential stagnation in the buying market could have on renters. If fewer properties are being purchased, this adds to the pressure already being seen in the rental market, especially in major cities, where demand is massively outstripping supply.

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To support employees looking for a home, it’s best to keep aware of these challenges and make allowances, like reviewing relocation packages to make sure movers have the financial freedom to stay in temporary accommodation for as long as they need. Plus, offering flexibility to attend viewings during work hours is super helpful - being first in the queue makes a big difference!

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Talent strategy: government to debate dual citizenship law

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A date has been set in December for a Bundestag debate on dual citizenship laws, one of the most prominent subjects raised by the traffic-light coalition government on their campaign trail.

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The recommended changes would make it easier for more residents in Germany to obtain dual citizenship, and in a shorter time. The proposal is that citizenship be possible after five years, rather than eight, or even after only three years in certain cases.

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It’s a development of the government’s efforts to bring more skilled workers to the country in order to boost the economy, following the introduction of the Skilled Immigration Act in 2020.

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This is a hot topic for HR professionals, as these changes would have a big impact on attracting talent from outside the EU. For a worker, legally being able to settle in Germany more easily, without having to renounce their existing citizenship, would be an attractive proposition. 

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It’ll therefore be crucial for companies to have appropriate relocation policies in place to be best prepared for potential recruitment drives from overseas. We’ll be keeping an eye on this story!

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Cost of living: How to get around Berlin for less

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It’s always worth staying on top travel developments and advising staff to take advantage of money-saving schemes, particularly at times like this! The cost of living crisis of course means money is tight, so special offers can make a big difference to monthly outgoings.

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So, it’s great to see that following the success of the €9 nationwide travel ticket this summer, Berliners now have access to a new scheme! Starting in October, unlimited travel on public transport in the Berlin AB fare area has cost just €29 per month, lasting until December 2022.

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It’s now been announced that this €29 ticket rate has been extended until the end of March 2023, while the federal government finalises plans for a €49 nationwide train ticket next year.

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It’s also been announced that a new €9 Sozialticket (‘social ticket’) will be introduced in January 2023 for low-income residents. This is a sizable reduction from the current price of €27.50.

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This’ll come as especially welcome news for new arrivals searching for a home, as they’re bound to be travelling around a lot attending property viewings!

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Support your talent: Festive feels - Berlin and Munich’s Christmas markets

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With the ongoing cost of living crisis, it might feel more difficult to muster up some festive cheer, especially for those newly arrived in the country. However, one way to offer support to your employees is by making them aware of cheap or even free ways to enjoy the sights of their city!

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Towns and cities across Germany will soon be transforming their main squares into wonderlands festooned with twinkling lights and lined with stalls selling crafts and sweet treats.

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Exploring the scenes with a mug of mulled wine is a great way to boost morale, get into the holiday spirit and mix with the local community, plus a chance to pick up gifts for loved ones!

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Here are some of the best and brightest in Berlin and Munich:

Berlin

• Gendarmenmarkt - Bebelplatz, 21st Nov - 31st Dec
• Charlottenburg Palace - Spandauer Damm, 21st Nov - 26th Dec
• Lucia Christmas Market - Kulturbrauerei, 21st Nov - 31st Dec
• Christmas in the Tierpark - 18th Nov - 15th Jan 2023

Munich

• Christkindlmarkt at Marienplatz - 21st Nov - 24th Dec
• Viktualienmarkt - 21st Nov - 7th Jan 2023
• Christkindlmarkt at Sendlinger Tor - 21st Nov - 23rd Dec

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We hope you enjoyed this month’s update - if you ever have any feedback, comments or questions about what's going on in your location, feel free to reach out!

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Thanks for reading, and see you next month!

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Questions About Moving Employees or What We Do At PerchPeek?

No matter where your business is located, or how many employees you have to move, the relocation experts at PerchPeek are standing by at all times to answer any and all questions that you may have about moving and taking care of your most important business asset, your team!